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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Jens Tingleff who wrote (6190)	7/12/2004 8:16:41 AM
From: rrufff	Read Replies (1) \| Respond to of 12465

Resources have to be utilized better. I don't know how many millions it cost to prosecute Martha Stewart. I'm not saying she shouldn't have been prosecuted, but the grandstanding attorneys have to go through so much minutiae that really goes over a jury's head. If it weren't her, a prosecutor would have made the case in a day. The only way for the system to change is for real leaders to take bold steps. 1. Computerize the markets and make them totally peer to peer ala INET. Eliminate the specialist and MM monopolies. They could still compete but would not have a monopoly any longer. On OTC BB and pinks, make every quote a real quote. Require all pinks to state unequivocal share counts, that can't be changed while stock is trading. 2. Insiders (and management,BOD) must announce (via filing) trades 24 hours BEFORE they sell. Periodic timed trades must be announced one year in advance with totals listed, first trade at least 7 days after filing. 3. Management must be limited to perks and packages based on 5 year performance, with 99% tax bracket for anything above a fraction of free cash flow. If no free cash flow, then nothing more than a nice low 6 figure package, adjusted for inflation. (Hey, I'll take that package and I bet I'd do a better job than at least 1/2 the CEO's). 4. No naked shorting. (OK to have shares found on delivery date as opposed to trade date but heavy fines for failure to deliver.) Make shorting a level playing field. Allow retail shorting on all shares even pennies if 100% margin is put up. No more MM naked shorting because of the end of their monopoly and most of their naked shorting does not amount to "making an orderly market." May need to restrict artificial shorting via derivatives if less than 100% margin effect. 5. Allow any shareholder to bring a 10(b)(5) or similar action against promoters and analysts or those who act like analysts (issue PR's, pretend to be analysts, post on BB's), if facts are intentionally misrepresented and reasonably expected to be relied upon. SEC has limited resources. Let those who get screwed tie the manipulators up in court. 6. To encourage class action settlements that make sense, no legal fees (other than out of pockets costs) unless recovery is at least 25% of the loss in value of shares alledgedly caused by the actions claimed in the complaint. If a class action is won by a corporation, the attorneys in the class action must reimburse the corporation for their legal fees at a rate similar to the lower of that charged by attorneys for both sides in the litigation. This will discourage some of the phoney "due diligence" which is nothing more than paper filing at huge hourly rates. 7. As for the real scum in the investment world, those who would bribe others to lie, those who would lie with bribed shares, those who would extort, promote, act in concert to manipulate, allow any shareholder to bring actions that would result in triple damages and attorneys fees, as well as punitive class damages. Admittedly, claims would have to be fact based so that mere expressions of opinion do not bring liability. These are perhaps pipe dreams, written with about 5 minutes of preparation. However, we need real action not accounting rules which lead to more CYA paragraphs in a filing. I bet I could take 10 of us real investors and come up with a real plan in 100 days that would be better than what passes as the greatest free market in history, that is, if you prefer to measure greatness by fairness.