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Non-Tech : ET and the Rest -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (3869)	10/23/2001 2:11:30 PM
From: Curtis E. Bemis	Respond to of 5459

SOunds like evrybody is a crook doesn't it. Unfortunately, yes. I expect of E*Trade, honest dealings and I'm a bit disappointed that they can't seem to run a clean shop. This whole affair smells of rotten-eggs, starting with Adnan Khashoggi, the arms-dealer, in Saudi Arabia.

To: BWAC who wrote (3869)	10/24/2001 9:43:06 AM
From: Curtis E. Bemis	Read Replies (1) \| Respond to of 5459

This thing gets more interesting every day- (and shadier dealings)-- update from Bloomberg--Can't blame ET for trying :-( quote.bloomberg.com Nomura Sues ETrade for $10 Million Over Stock Loan (Update1) By David Glovin New York, Oct. 23 (Bloomberg) -- A unit of Nomura Holdings Inc. claims in a federal lawsuit that ETrade Group Inc., the second-biggest online broker, has refused to return $9.89 million it owes Nomura from a stock loan. Nomura Securities International Inc. said that on Sept. 25 it held 1,649,100 shares of GenesisIntermedia.com Inc., which the unit of Japan's largest brokerage had borrowed from ETrade on June 21. Nomura said it's tried to return the shares, under the terms of their lending agreement, and ETrade ``refused to return Nomura's cash collateral.'' The Securities and Exchange Commission on Sept. 25 halted trading in GenesisIntermedia, a Los Angeles telemarketing company controlled by Saudi arms dealer Adnan Khashoggi, as the agency probes whether someone manipulated the stock. Nomura also alleges that ETrade improperly tried to collect another $4.9 million on four consecutive days last week by claiming the value of the GenesisIntermedia shares had increased to $9 a share from $6 during the trading halt after the New York Stock Exchange advised Nomura to value the shares at zero. ``ETrade's only possible reason for trying to mark up the GENI shares is the hope a Nomura employee may make an error and ETrade will improperly profit from the error,'' alleged Nomura. ETrade spokesman John Metaxas said the suit has no merit. ``ETrade is confident its actions were appropriate,'' he said. Menlo Park, California-based ETrade was one of four brokerage firms that borrowed a total of 7.2 million GenesisIntermedia shares from MJK Clearing Inc., the clearing unit of Minneapolis-based brokerage Stockwalk Group Inc., in exchange for about $125 million, according to Stockwalk. Collapse MJK later collapsed after it was unable to repay $60 million to the firms, including about $30 million to ETrade. The money came due after GenesisIntermedia stock plunged 66 percent. MJK couldn't pay the money because Native Nations Securities Inc., which lent MJK the 7.2 million shares, defaulted on a related $60 million payment that was due to MJK. An ETrade spokesman didn't immediately return a call seeking comment. Nomura said in its suit that it had originally borrowed 2.45 million shares from ETrade in exchange for $41.7 million cash collateral. Between June and September, Nomura returned 805,900 shares to ETrade, and ETrade returned some of the cash to Nomura. When Nomura tried to return the remaining shares, ETrade refused to hand over the rest of the money it owed, the suit says. ETrade ``refused to accept the borrowed shares and continued to hold $9,894,600 of Nomura's money,'' Nomura said in its complaint, which was filed yesterday in Manhattan federal court. After borrowing the shares from MJK, ETrade and the three other brokerage firms lent them to Nomura, A.G. Edwards Inc., and Wedbush Morgan Securities, according to Stockwalk.