To: ftth who wrote (659 ) 11/19/1997 10:43:00 PM From: ahhaha Respond to
There is always potential for abuse in our complex financial system. It makes no sense for anyone to abuse the system because the penalties are criminal, read,you do hard time for a victimless crime. I'll challenge Copley to assert these claims to the SEC, or the NASD. These government bodies love to pursue wrong doers. They'll go to any length to do their jobs. Try getting your broker license to experience first hand to what extent your tagged. The only people in a position to initiate any of the violations mentioned in the Copley article are tagged. If you operate in unregistered securities which are similar to Monopoly Money in fungibility, they are not under exchange or other 1933 Act laws. They're not under margin laws. They sure aren't being reported in the newspapers as short interest. All of that is registered. If you have a listed company that the FED has okayed for margining, you may short it through a registered dealer. Otherwise, you're just entering into a chain letter or Ponzi Scheme, none of which has anything to do with short selling and the availability of shares for borrowing. You missed something alright, Copley wants its clients to take delivery. If ever there was a potential for abuse it is in delivery. A client takes delivery of the shares. Since they aren't in street name, Copley can loan them even though thay don't hold the physical shares. Copley is violating their responsibility as agent, since the FED requires a percentage of the nominally held shares to actually be in possesion (not posted for collateral). Nowadays settlements are net cash so no one actually knows where underlying securities are located. But they sure can find out fast if there is a squeeze. You don't want a visit from the clearing house enforcers, it's worse than the FBI. They'll knock your front door down and take the certificates if Copley blew town for the Cayman Islands. So if you take delivery, you're betting your house on your House. I trust brokers, but only so far. In fact, one owes me 800 grand because of an issue like this developed because I went short before the crash of '87. I also have extensive experience as a stockbroker and institutional money manager about all these issues. Undeclared shorting? Please define. You can't short registered shares unless you can borrow them. Well the Bre-X exec had access to vault treasury certificates and sold them to his brother. So what? What does that got to do with the idiot article allegedly by someone presumably working at Copley Pacific (by the way, I never heard of those guys, What kind of fool would deal with an obscure broker? Answer, A crook). There are many reasons why people write all sorts of nonsense. The usual reason is that they are angry because they got there butts kicked for being greedy. As far as the SEC site goes, it represents what I mentioned above. The SEC goes out of its way to make clear that they are looking to create victims. This attitude presumably will get people to comply. It is predatory and probably necessary. Fraudulent trades? We can just go over every trade with every principal and figure exactly who did what and when. It is all automated now and available fairly quickly. Oh, I forgot, you're refering to those non-listed, non-registered shares that the public so often tracks in. I am going to contact some people I use to get to the bottom of nonsense and I'm going to find all about Copley. Stay tuned.
