Here's something that was just posted on the GTEL RB board by one of our members who's seriously interested in the subject of naked shorting.
05 Apr 2005, 06:10 PM EDT
Msg. 335452 of 335461
(This msg. is a reply to 335433 by danielleinsf.)
Jump to msg. #
StockGate: Did Depository Trust & Clearing Interfere With First Amendment Distribution of Newswire?
In a developing scandal, while the Depository Trust and Clearing Corp., controlled by the NYSE and NASD awaits the findings of one media regarding its purported role in assisting naked short selling, Dateline NBC, produced by General Electric (NYSE: GE), it has reportedly taken blatantly unconstitutional action to squelch the distribution of the reporting of another media.
Investrend Information, which publishes FinancialWire, said it has asked its counsel, Marshal Shichtman, Esq., to look into the circumstances that led to FinancialWire being removed from the distribution of Investors Business Daily, which supplies news feeds to Yahoo (NASDAQ: YHOO), after MarketWatch, formerly a partner with Viacom’s (NYSE: VIAb) CBS and now a unit of Dow Jones (NYSE: DJ) was asked by IBD to turn off its feed to its online Investors.com and its redistributions.
Shichtman has been provided with information about emails that purportedly described the collusive action as having been taken February 7 at the request of an executive with the DTCC.
The DTCC apparently objected to the continued distribution of FinancialWire on the basis that in its opinion, the newswire publishes “opinion” and “not news.”
Both First Amendment and wrongful interference issues may be involved, as well as more serious Federal consequences should it be determined that DTCC executives have quasi-governmental ties. The First Amendment specifically protects news organizations from interference by the government.
Although dozens of other media have now reported on the growing national scandal termed “StockGate,” the DTCC has now publicly confirmed that its primary beef is with FinancialWire, which has been the sole media regularly following the now rapidly-expanding story for the past two years.
A FinancialWire article was recently cited, for example, by U.S. Senator Robert Bennett (R-UT) in questioning of U.S. Securities and Exchange Commission Chair William Donaldson. A video of that exchange is at http://www.investrend.com/Admin/Topics/Articles/Resources/655_1110670103.ram
In a post on its site, First Deputy General Counsel Larry Thompson responded to a DTCC statement that “Some articles have said we make almost $1 billion from (the Stock Borrow program):
“This statement is purposely misleading. One billion dollars represents our total revenue from all our operations of all subsidiaries. The fact is that there are NO separate fees for transactions processed through the Stock Borrow program. There is just the normal fee for delivery of the shares, which is 30 cents per delivery. If you assume we make an average of 22,000 deliveries through Stock Borrow a day, there would be about $6,600 extra a day in revenue over 253 trading days, or about $1.67 million a year in additional revenue, out of $1 billion.”
FinancialWire had never stated what the DTCC makes from the Stock Borrow program. It quoted lawsuits as alleging that, and the only response the DTCC made to FinancialWire inquiring about the lawsuits was to deny that they existed.
Thompson has now admitted in a Q&A posted at http://www.dtcc.com/Publications/dtcc/mar05/naked_short_selling.html
that there have been 12 lawsuits naming the DTCC, and in it he disputes both the effectiveness of the lawsuits as well as the accuracy of the figures.
Rather than dispute, comment on or respond to FinancialWire’s inquiries, the DTCC has apparently decided it is easier to lean on its corporate friends to try to limit FinancialWire’s distribution.
Easier perhaps. Fair? Moral? Ethical? Legal?
These will be the issues further to be explored. http://www.investrend.com/articles/article.asp?analystId=0&id=14256&topicId=137&level=13...
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
• Trade like a pro with Qcharts
• Try Livecharts free for 14 days!
« GTEL Message list / Reply to msg. / Post new msg. « Older / Newer »
You can also:
Ignore/Hide this poster on all boards
Email this post to a friend
Report TOS violation
Get powerful streaming charts ...
Try LiveCharts™ for free
Real-time market information. No software to download.
The ultimate trading software for the serious active trader.
45 technical analysis tools!
Quote (del. 15 min.)
3:59 PM ET
+0.0230 (+9.35 %)
- - - - -
Full quote / LiveChart
Get real-time streaming quotes
My Boardmarks Help
BPTR 0 new
DYMTF 0 new
EELN 0 new
GTEL 1 new
PLFM 1 new
- - - - -
Mark all msgs. read
- - - - -
Add or remove boards »
Pressing these keys is the same as clicking their link equivalents. Note: Netscape users don't have to press enter after the shortcut. Mac users - use the CTRL key. Alt 1 [Enter] First unread
Alt Z [Enter] Previous or Older
Alt X [Enter] Next or Newer
» Lycos © Copyright 2005, Lycos, Inc. All Rights Reserved. Lycos® is a registered trademark of Carnegie Mellon University.
About Lycos / Help / Jobs / Advertise