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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: rrufff who wrote (759)	2/22/2006 5:03:26 PM
From: rrufff	Respond to of 5034

More from Bob O'Brien thesanitycheck.com Abelow Row Over NJ Treasurer Position Sparks Showdown Location: BlogsBob O'Brien's Sanity Check Blog Posted by: bobo 2/22/2006 9:00 AM A great article came out today about tomorrow's hearing for Abelow in NJ - and it looks as though the bombs are going to go off there tomorrow. The article speaks for itself. You can read it here. Rather than a long-winded commentary (as I have been wont to do on occasion) I would suggest that we all read the article, and then regroup here for comments. Astounding that a local paper gets more of the story correct than the WSJ or the NY Times, huh? Or maybe not. Read it, and then come back and comment. Copyright ©2006 Bob O'Brien Permalink \| Trackback -------------------------------------------------------------------------------- Comments (10) Add Comment -------------------------------------------------------------------------------- Re: Abelow Row Over NJ Treasurer Position Sparks Showdown By Patchie on 2/22/2006 9:22 AM "We are not police, we are not regulators, our job is to settle trades," said Steven Letzler, a spokesman for the firm. "We have no clue about naked shorting. Buys and sells -- that's all we see." Letzler said that opening up the company's files to the public in the hope of rooting out naked short sellers would not only be a massive violation of investors' privacy, but would promote other forms of stock manipulation. "If we exposed everybody's investments it would move markets, there would be chaos," Letzler said. My Response: The DTCC is considered a Self-Regulatory Agency without the powers of Enforcement. The DTCC does have the right to create laws and have done so recently restricting issuers from the self-help measures of custody only trading. Thus, they can equally create laws to control the duration of lending in a stock borrow initiative and they have the authority to execute buy-ins based on a Notice from an Institution. Therefore, they can create laws to allow them to initiate buy-ins on their own behalf for the SBP they manage.. Furthermore, Letzler claims that opening up company files to the public would be a violation of investors' privacy and promote other forms of stock manipulation. 1. The DTCC files are not in the name of individual investors but in the "street name" of the Institutions. The DTCC has no record of Beneficial Holders and thus there is no violation of Privacy in turning over DTCC records regarding stock trades. 2. Is Mr. Letzler insinuating that stock manipulation is taking place and that by disclosing this problem it may create another form of manipulation even if it corrected the one that was in existence today? 3. If the job of the DTCC is to settle trades than they must do so INCLUDING those trades that fail initial settlement criteria. They are failing in their duties as evidenced by the FOIA data gathered and the SHO lists published. Further regulatory actions confirm that the DTCC is allowing stock manipulation to take place using the acceptance to settlement failures.