NO QUARTER FOR CORRUPTION (Focussing on The Fed./FRBS)

[Telephonics]

; Literally – January 12, 2005

David Patch



Naked Shorting, the most secret stock market fraud ever to dominate our markets, has some concerned US Federal Agencies monitoring the public interest and public sentiment.



While heralded Financial News sources such as TheStreet.com (Nasdaq: TSCM), Dow Jones (NYSE; DJ) and the full gambit of Time Warner Affiliates (NYSE: TWX) continue denying the existence of a problem, Stockgate Today is attracting a continuous flow of Federal Agencies looking to monitor the situation.



Big Brother is watching and paying attention to Stockgate Today as the “pro’s” stumble at the opportunity to grasp the story and run with it.



Now documented in a special section located at TheSanityCheck.com is a sample of the captured Federal, State, and Regulatory interests in the Stockgate Story. Included with the data are the Wall Street Institutions and the Private Legal Counsel that represent these Institutions. And not to be forgotten, we have the Financial Press. Those lackeys who deny the Stockgate problem exist but monitor the activities of the site anyway.



For the past several years, Stockgate Today has monitored who our visitors are to the online petition located at www.investigatethesec.com. The list was impressive as nearly every Federal Agency and major Wall Street Institution have become our regulars. That’s right regulars. What is presented by the Industry, Regulators, Congress, and a controlled media as a non-issue has a regular readership of those most involved in hiding the story.



As an example of a typical financial media response to this issue, in a RealMoney.com article published on December 30th, 2005 titled “In 2006; Don’t Blame the Shorts” Jim Cramer had this to say;



“There is this whole cottage industry of people who know nothing about the mechanics of Wall Street, meaning people who have never spent time in margin, in reconciliation, in the cage, in stock loan, and don't know how things work. They keep writing and talking as if having no such thing as naked shorting would make the world quite different and more positive.” A “Cottage Industry” that seems to have a following of concerned parties.



If you chose to, venture over to TheSanityCheck.com and follow the link to the section titled “Web Blogs, Big Brother…” or follow the link provided (http://thesanitycheck.com/WebLogsBigBrother/tabid/89/Default.aspx). Open up the document and peruse through the captured visitors. Here are some I enjoy the most;



From Big Brother himself we have the US Senate, US House of Representatives, and the Securities and Exchange Commission. You would expect that as each has a personal stake in the markets activities. But then there are those other agencies that make you say huh!



Captured on record is the Department of Justice, US Treasury, and US Federal Reserve. There is also the US Courts, US Prison Service, Internal Revenue Service, General Services Administration, and of course the US Postal Service. I wonder if the USPS is looking at those account statements mailed out talking of trade settlement and considering them as mail fraud when the settlements are now confirmed to have never taken place.



From Wall Street we can find our cornerstones in Goldman Sachs, Bear Stearns, Merrill Lynch, Fidelity, and Bank of America. Wells Fargo, Wachovia, Smith Barney, and AG Edwards are our most frequent visitors with either friend or foe closely monitoring the situation. vFinance, TD Waterhouse, Charles Schwab, Westminster Securities, and Knight Securities check in from time to time as does other smaller known firms. Even the Options Clearing Corporation and the London Clearing House have made infrequent appearancesyet appearances still the same. With Wall Street comes protective lawyers and we have several of those that like to check in from time to time. We left most out of the display but the list is extensive.



The Legal Teams of Stradley Ronan; Davis, Polk & Wardell; Kasowitz, Benson, Torres & Friedman, Loeb & Loeb LLP, Warner, Norcross, & Judd, Clearly Gottlieb, Gibson, Dunn & Crutcher, Morgan Lewis, and RW Baird have all been to visit as have many others.



But then most interesting are those regulatory agencies responsible for stopping this mess. The SEC (already mentioned) is probably running second only to the Depository Trust Clearing Corporation in site monitoring. The Depository Trust, for all their chest thumping innocence, seems to be somewhat obsessed with a site that rarely even speaks of them anymore, a special hello to the DTCC’s own Stuart Goldstein and Larry Thompson. We even get that rare occurrence from the Ontario Securities Commission who checks in along with other Canadian Government Agencies.



The question to ask after viewing this document, based on this tremendous list of regular observers, is why? Why is there so much high level interest in monitoring a web site that is simply being operated by the tin-foil hat crowd of “Cottage Industry People”?



Could it be that this “Cottage Industry of people are not so off base after all? That this group, to the confusion or lack of real investigation by Mr. Cramer, has on its team Brokers, Analysts, and Back Office Personnel that really do know a thing or two about how the market operates. Or is it the There are Stock Loan Officers and a former manager at the DTCC that has accurately provided the insight into this abuse. Or maybe it is the former SEC attorneys who recently left their posts to come over to the other side to assist in ferreting out this problem. Maybe, just maybe, the story is real.



With all the financial press interest in this site you would also wonder why they too can’t figure it out. Heck, they are supposed to be the Pro’s. Why then don’t these reporters and columnists take the time to research a problem that is clearly in existence?



NASD CEO Robert Glauber recently announced his intent to resign at years end. His replacement, Mary Shapiro, was quoted in the Dow Jones just recently highlighting the NASD focus for 2006. On top of the list was PIPE transactions and naked shorting. Another subtle announcement that the problem that doesn’t exist has people worried.



Go look for yourself. Log on to www.TheSanityCheck.com for a view of the Visitor Log and go to www.investigatetheSEC.com and see what all the fuss is about. Remember folks, this is just a sample. Imagine what the real picture looks like.





For more on this issue please visit the Host site at www.investigatethesec.com .