Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : CNBC -- critique. -- Ignore unavailable to you. Want to Upgrade?

To: Mary Cluney who wrote (2490)	4/19/1999 1:52:00 PM
From: Jim S	Read Replies (1) \| Respond to of 17683

You're absolutely right, Mary. You don't understand it. jim

To: Mary Cluney who wrote (2490)	4/19/1999 6:53:00 PM
From: Toby Zidle	Read Replies (2) \| Respond to of 17683

Mary, consider this about Joe Jett: Jett wasn't some naive McDonalds burger server. He has a graduate degree in business and finance from M.I.T. He demonstrated expertise in advanced computer systems for financial analysis. (He knew very well the in's and out's of Kidder Peabody's computerized accounting system.) He had been on the job at KP for a couple of years and generated such a high level of profits with his trades that he was held to be a virtual star. And yes, his books balanced, almost to the end, because he knew the mechanisms of balancing as well as any auditor. As for Jett being "relatively new in the business", do you know the age and experience of the young guy who runs your particular Fidelity Fund? Do you remember when analysts expressed fear that any mini-rout in a bull market could turn into a significant crash because young portfolio managers have never experienced a bear market? Joe Jett and these portfolio managers are of the same vintage. How do you trust one set to manage your mutual fund, yet excuse the other party due to his age and complexity of the system? Sure, you can argue that the security industry's transaction systems don't have the proper safeguards. You can say many people know how to cheat the system. You can insist that Jett (and others) are improperly supervised. It's likely that Jett's supervisors managed to squirm out of much of the negligence that they exhibited. Likely they covered their involvement quite well. They supervised improperly and got stung. But my understanding is that they did not initiate any fraudulent trading accounts, though they may have benefited from commissions. Notwithstanding this, the spotlight should be focused on the person alleged to have initiated the fraud. And a plea of "not guilty due to newbie-ness" is not acceptable.