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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (14767)	5/24/1999 11:21:00 AM
From: Les H	Respond to of 99985

The Worst of the Bunch Yes, barely two weeks after the first slam of Datek Securities, we have another article to write. Not something to be proud of, just in case there was any doubt out there. But let's get to it. First off, as a quick review, two weeks ago we examined the incredulous act of Datek Securities not delivering to its clients shares of the Goldman, Sachs & Co. IPO., post allocation. And the reason behind this was... It didn't have any! Fill in any word, phrase or group of sentences you want on that one. But even as amazing as the above was, it was topped barely two weeks later by news that even blew me away. And the news was... Datek "allegedly" took money out of its customers' funds to cover its own trading obligations. Let that one sink in for a while. The implications are overwhelming, even for me. As for Datek, the securities firm maintains that this series of incidents was due to number of compounding "clerical errors." Right -- and my real name is the Trading Goddess. In other words, the facts are that there were an amazing number of steadfast compliance and regulatory rules that were "overlooked" or manipulated for this to happen. Period. Which can only cause one to wonder what will happen to Datek if the market ever dies... But back to the article. Here is what to take away from all of this: 1. In choosing an online broker, you need to pick one that exemplifies the term "financial integrity." One that steals from it customers, in addition having a history of being accused of money laundering, manipulating the stocks of smaller companies, in addition to encouraging illegal trading at a former day-trading unit, among other admirable acts, is not worth the $9.99 per trade. Just to state the obvious. 2. Just because one firm rips apart the notion of integrity in the online world, due to the excuse of "rapid growth," does not mean that all do. As with anything else, choose your partners carefully. 3. Question to the SEC: Why, amid not one, but many criminal allegations, does the unit allow this firm to continue to operate at the expense of the current and future customers it is supposed to serve? I must be missing something. Feel free to clue me in if you so choose.