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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: StocksDATsoar who wrote (91093)	3/31/2005 1:38:40 PM
From: StockDung	Read Replies (2) \| Respond to of 122087

google.com

To: StocksDATsoar who wrote (91093)	3/31/2005 5:15:47 PM
From: StockDung	Read Replies (2) \| Respond to of 122087

"according to Larry Thompson, First Deputy General Counsel, "the Euromoney article mentions a lawsuit, Sporn v. Elgindy, in which DTCC was named as a defendant, but fails to tell its readers that last month a federal judge dismissed this complaint in its entirety."" DTCC Calls Euromoney Article on Its Stock Borrow Program and Naked Short Selling ''Sloppy Journalism'' NEW YORK--(BUSINESS WIRE)----The Depository Trust & Clearing Corporation (DTCC) responded today to an article appearing in the April edition of Euromoney magazine on naked short selling, saying the article "fails to reflect any true understanding of the complicated securities clearing and settlement programs it discusses, fails to report that most of the litigations mentioned in the article have, to date, been dismissed or withdrawn, and, perhaps most egregiously, accepts as true erroneous characterizations of DTCC's stock borrow program." In a letter to the editor, which was released publicly and posted on its Web site, DTCC cited a number of inaccuracies, insinuations and misleading information in the piece. "For example," according to Larry Thompson, First Deputy General Counsel, "the Euromoney article mentions a lawsuit, Sporn v. Elgindy, in which DTCC was named as a defendant, but fails to tell its readers that last month a federal judge dismissed this complaint in its entirety." DTCC will similarly seek dismissal of the amended complaint filed by plaintiff. Thompson said the article "largely parrots irresponsible allegations asserted by lawyers in various litigations filed around the country against DTCC and numerous broker dealers. "The truth is that nine of the twelve cases against DTCC have been dismissed or withdrawn, with three still pending." Other examples of errors in the article included mentions of a "lending pool" that doesn't exist, no mention of the fact that neither DTCC nor its subsidiaries have the power to force buy-ins by member firms, and the fact that DTCC is not required under Reg SHO or any other U.S. regulation to release confidential customer information on the number of fails to issuers, only to regulators and markets. He also noted, "As a publication covering capital markets globally, we would have expected you to give greater care to this type of story. There wasn't any effort to fact-check assertions in the story with us or to verify how DTCC actually processes trades, which is really troubling. "DTCC has been an integral part of the capital market system in the U.S. for over 30 years, providing automated post-trade processing of $1 quadrillion in securities transactions in 2004. We're one of the most highly regulated companies in the world (by the SEC, the Federal Reserve and the New York State Banking Department)." "We will not accept silently this type of sloppy, one-sided journalism whether in print or broadcast," said Thompson. DTCC has requested Euromoney acknowledge these errors in its next issue. The full text of DTCC's letter to Euromoney can be found at www.dtcc.com. About DTCC Through its subsidiaries, DTCC provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and over-the-counter derivatives. DTCC's depository also provides custody and asset servicing for more than two million securities issues from the United States and 100 other countries and territories. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com. The Depository Trust & Clearing Corporation Stuart Z. Goldstein, 212-855-5470 sgoldstein@dtcc.com 03/31/2005 16:19 ET