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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: Mike who wrote (8)	3/17/1998 12:44:00 AM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 19428

The problem lies in what is called a"buy-in". Whether or not you have a borrow, if the market maker's clearing firm initiates a buy-in, you must be able to guarantee delivery of the shares. Since Waldron had (note they are not making the stock as of this morning),been doing a buy in, it was to the benefit of themselves and their clearing firm Wedbush. Ie, they would buy me in at 36 even though the stock never traded there. Do this a few times over the market price on a few large and it starts to hurt. It is illegal because the clearing firm that initiates the buy in must, under NASD rules, be able to justify the price that they buy you in at. But, for Waldron it was desperate times and it may still be for Wedbush. Out of control people do stupid things. This is a classic out of control situation. It does look like its coming home though- today the stock fell to 21 & change and Wedbush won't be clearing for Waldron by the end of the week. Verstaen Sie Das?