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To: LPS5 who wrote (10119)	5/2/2002 7:41:00 AM
From: Dominick	Read Replies (1) \| Respond to of 12617

Hi LPS5: Although I can't even remember to roll up my car windows and it's been many moons ago since I heard cases as a Securities Industry Arb for the NASD, there are some things that come to mind. Via the "know your customer rule", I saw numerous discrepancies between what was marked on the customers form and the stocks they were put in. Ex: conservative or income goal was checked yet they were in and out of high beta stocks. Other numerous customer complaints bordered on what the broker tells the investor, (customer or public). If the investor knows or the broker implies that he is a broker or works for an investing firm he is therefore representing himself as an "Expert" and carries with it full authority, even though he may state, "It's just my opinion". Also, the firms rules usually state something to the effect that any presentation or conversation with the customer or the public regarding anything to do with investing must first be approved by firms due diligence department. Our cases dealt with customer vs broker or firm vs broker. I'm not sure if it applies to Analyst. Dominick

To: LPS5 who wrote (10119)	5/3/2002 10:00:15 PM
From: John Meade	Read Replies (2) \| Respond to of 12617

"All companies do this. As I said previously, no matter what the company offers - tax advice, mortgage services, a new car, a faster computer, or whatever it is they're selling: one of the basic, sector-agnostic tenets of marketing and advertising is to suggest that there is some natural, unqualified affinity between the interest and the prospective customer. Securities brokerage is no different." And all of those companies can get their asses sued off for misrepresentation and found guilty of criminal behavior. "Securities brokerage is no different" So true!!!!!! And you wonder why the investigations???? Stock Brokers are Stock Brokers, even if you call them analysts. It is in a dog's nature to steal food, for them it is not stealing. Now if the damn SEC and DA would just realize that these analysts were just following their natures and that therefore their unethical behavior was not criminal everything would be ok. Maybe the analysts should just claim the insanity defense. LPS5, maybe the mantle of protector of analysts, Enron executives and accountants could be passed to you. Your essays on SI are always spot on and informative but defending analysts actions or believing them to be free of fraud is on the wrong side of the fence. LPS5, no one expects you to ever see anything criminal in the behavior of the analysts. We all know it is beyond your nature to comprehend their activities to be the slightest bit unethical. After all you are in the securities business, correct? I was looking in to getting licsensed as a CTA for I have just about maxed out the 15 people that I am allowed to trade for. I was told in order to pass the Series 7 test I would have to [while walking across a crowded intersection witness a little old lady drop a $100 bill, if I could push her over, grab the $100 bill and shout out "that biitch tried to steal my money" as OTHERS helped her up] I then would get my Series 7. I was told to become an analyst the test is 100 times more difficult/unethical. BTW, isn't the analysts job to help the people NOT shaft themselves? Stock Broker logic: "they were going to lose their money anyway" Good Stock Broker: a guy who can generate $5000 in commissions out of a guy who opens a $5000 account before the guy loses all his money listening to analysts. John M