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Pastimes : MANIPULATION IS RAMPANT --- Can We Stop It? -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (343)	6/13/2002 4:00:45 PM
From: waitwatchwander	Read Replies (3) \| Respond to of 589

UBS Warburg Apologizes for Report on Samsung Electronics By Kim Yon-se Staff Reporter Lion Britain, vice chairman of UBS Warburg apologized yesterday to the Korean government and financial regulators for the controversial report containing its downgrade investment opinion of Samsung Electronics. Meeting with Minister of Finance and Economy Jeon Yun-churl and Oh Kap-soo, a vice governor of the Financial Supervisory Service (FSS), he said, "We apologize for our analyst's dubious practice. And there will be a new analyst taking over the post." Britain also said they look forward to re-establishing the relationship with Korean corporate and retail customers. But Jeon told him that the FSS will take care of the case at its will, adding more and more domestic investors have been criticizing some foreign analysts for allegedly issuing glowing remarks and "buy" recommendations on stocks that had already plummeted or were on the verge of steep declines. An official at a domestic brokerage firm said that Korean investors are still expecting that regulators will impose sanctions against Warburg because they have vowed to tighten supervision of foreign brokerage firms. Small investors suggested via the FSS bulletin boards regulators further dig into the case in order to protect investors and maintain the integrity of the domestic stock market. Warburg made about 16-18 percent of trades earlier in the month, according to the Korea Stock Exchange (KSE). Other foreign securities firms in Korea point out the amount is fairly high. Lee Keun-young, chairman of the Financial Supervisory Commission, used to say Korea's financial regulators will take a strong stand, adding, "There will be no room in financial markets, nor in financial intermediaries, for those, including U.S. and Britain-based brokerages, who would put their own interests ahead of those of their customers." Seemingly in the wake of the dubious practices by UBS Warburg, the FSS has stepped up to turn up the heat on some unethical foreign analysts. Meanwhile, UBS Warburg was found to have replaced Richard Samuelson with Michael Chin for the head at the Korean Branch May 17. kys@koreatimes.co.kr hankooki.com

To: Dave Gore who wrote (343)	6/13/2002 6:35:44 PM
From: LPS5	Respond to of 589

Business World, Holman W. Jenkins Jr. 29 May 2002 Wall Street Journal On 'Bubblenomics': "[A]rraigning everybody for everything is tantamount to arraigning nobody for anything...[S]tock prices guide the flow of capital in our economy and companies exist to produce the assets, strategies, and disclosure the market will reward. If investors aren't going to assign reasonable valuations to companies, they shouldn't be surprised if they get wacky results...However you slice it, markets were bound to supply what investors were willing to pay for. And investors proved willing to pay astronomical proces for untried IPO companies that made a virtue of their novelty and profitlessness, claimning they were after bigger game, such as revolutionizing bigger industries with the click of a mouse...[T]he regulatory apparatus has to take some of the blame. Washington has been selling small investors a bill of goods for decades, suggesting that Joe Stockpicker can and should think of himself on as equal footing with pros and insiders."

To: Dave Gore who wrote (343)	6/13/2002 6:38:05 PM
From: LPS5	Read Replies (1) \| Respond to of 589

Deal Sense by Robert Teitelman The Daily Deal 15 May 2002 "Try as I may, I can't stir up significant sympathy for the stockpicking victims of the tech stock bubble...Perhaps as endlessly fascinating as Analystgate has been, I still have trouble getting my mind around certain facts. Why, for example, would anyone listen to Blodget to the exclusion of other voices? From e-mail evidence alone, Blodget seems to have been - the euphemistic word of the day - conflicted over companies he covered. Bud did investors who managed to lose so much on tech stocks not consult anyone else, pull a filing, peruse an annual report, ponder the wisdom of Lou Rukeyser and his party guests, flip through the pages of Money, Smart Money, Smartest Money? Did they consult a single research report? Did Blodget hypnotize them?" "Part of my crankiness about all this is the sense that we're missing something. In all the commentary on the scandal, certain questions are not asked. DEspite what we know about market uncertainy, we continue to be perfectly contented to have most of our net worth exposed to the market. More seriously, given what we know of the difficulties of investing, should we encourage non-professionals to speculate? And given what we know of human psychology, do we run the risk of creating a moral hazard as we attempt to right the wrongs of the bubble era? Ah, moral hazard...The term was last bandied about when certain voices in the U.S. lamented attempts by the International Monetary Fund to bail out certain countries in Asia. Moral hazard was something that bleating, global do-gooders succumbed to. The nonbleaters feared that those crony-ridden countries would respond to bailouts by figuring they had nothing to lose the next time and go for broke...[B]ut, of course, it's different at home, where retail investors vote, and where widespread sentiment has washed over bubble victims, including the TV technician who lost $455,000 on [publicly-traded company], apparently on trace-inducing advice from [analyst's name]. Plaintiff's lawyers have been busy filing suits. And Spitzer has been cajoling Merrill into setting up a restitution fund for any investor who can prove that he was hypnotized by Blodget, or otherwise induced to make terrible decisions."