Replies to post #4032 on CWRUObserver.com -Financial News and Headlines -

[dwiz5]

Resigns before he get's his hand cought in the cookie jar by Feb.20

[bobkubecka]

WOOOOOOHOOOOOOOOO hopefully he can run but he can't hide. As we say in Texas "get a rope"

[thepennyking]

So, What about the NASD being a better regulator than the NYSE? How about the Nasdaq technology over NYSE Specialists? Who says the SEC is actively looking out for the best interests of the investors and are willing to take all necessary steps to put investor rights first? Whoever said it or believed it was only being fooled by a system of regulation corrupt to the core.
Yesterday the NASD demonstrated their powers of Self Regulatory Control as they once again put member interests first over those of the investors. They provided a simple extension to a proposed rule change to Rule 3370
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Affirmative Determination. Normally an extension to a rule change would be benign but, when the rule change is to plug a "loophole" by which slime and corruption flows through, the extension is simply a means of condoning continued abuse and fraud. That is what they did.
The Nasdaq has fought repeatedly with the NYSE over Technological superiority. This extension was over technilogical failures. For years our Member firms have been trading with non member firms. For years we have taken order flow and naked short sales from offshore accounts. For years every member firm has had a requirement to conduct Affirmative Determination on all short sales THEY execute. For years the Member firms have reaped the financial benefits to offshore trades and the commissions they generate and now they are admitting they can't communicate with those they have been trading with. Today, a rule change to plug the conduit to fraud was delayed because our member firms suddenly fail to have the technology to communicate with non-member firms and to conduct affirmative determination FOR the member firms. Our Technological failure have resulted in a continuation to fraud. So much for the Nasdaq superiority over the NYSE in technology.
That is not the real story, however. The real story is more simple. The NASD had their hand on the shutoff valve to massive fraud. They were about to close down a conduit in which criminal elements slimed our US Markets. A conduit in which US Investors were being abused and in which US companies were driven into Bankruptcy. But they didn't. Why? Are they afraid that when the conduit dries up and the slime no longer flows that the earth beneath the slime is covered with fraud and corruption within the US Firms? Are they worried that when the slime stops flowing so does the trade commission revenues? For whatever the reason, the NASD elected to dal with the slime instead of dealing with the US soil beneath it. As they did this they put the Member firms, the firms they are cartered to REGULATE above the Investors.
This rule change was to plug a loophole associated with the lower class stocks trading in the US Markets. these penny and micro-cap stocks are stocks that do not generate a great deal of institutional investors and thus, the retail investor is the party most abused by this fraud. Could that be the reason that this fraud continues? Could that be the reason the SEC failed to respond to the 2001 request for this change and has waited until November of 2003 to propose such a simple reg change that stop gaps a "loophole". the retail investor simply does not generete the interest or the protections of either the NASD or the SEC. At some point that becomes a criminal issue as our rights as investors are being violated by the police chartered to protect us.
I t is time we all start to question the integrity and abilities of our regulatory bodies. It is time we ask Chairman donaldson why he continues to allow fraud and corruption to abuse the reatil investor as he protects the wall street members. It is time we ask why the SEC and NASD have a joint task force on this very issue and yet they fail to close the "loophole" that would stop the very element they set up the task force to investigate. Ultimately, if the decision to extend this rule change was to protect the member firms from their own financial liabilities those that decided to provide this extension need to be investigated for criminal charges.
The DOJ and the SEC have tape recorded messages of Brokers being bribed to collapse stocks and they have yet to take action against these brokers at either a civil or criminal level. these Brokers are instead left to commit more crime and punishment on the retail investor. We must all ask why and who is doing the covering up of this problem. We must do it in our papers and our news casts. we must takle it to the streets. We canot rely on regulatory support because they have proven too often that they are part of the problem and not part of the solution. Money and power drive their decisions not equuality and rights to all people and all companies.
Wall Street is embrioled in crime but worse than that it's regulators are embroiled in covering up the crimes.
Dave Patch
www.investigatethesec.com Go to Media Links for full coverage on this issue.
February 19, 2004. (FinancialWire) On Wednesday it was noted that
abnormal trading in Overstock Com (NASDAQ: OSTK), might "presage a raft
of similar short seller squeezes leading into Friday's implementation of
new "affirmative determination" rules."
However, that is not to be. Despite gains leading up to the date for
many of the more than 200 stocks alleged to be effected by "naked short
selling," many of those gains have now collapsed after leading market
makers named in various lawsuits and other actions, including Ameritrade
Holding Corp. (NASDAQ:AMTD), Deutsche Bank AG (NYSE: DB), and ETrade
Group, Inc. (NYSE: ET) were given a "reprieve" until April 1.
The NASD, which extended what it had already deemed a "loophole," thus
allows the manipulative trading in hundreds of small companies to
continue for another month and a half.
The reason given was that many NASD members, most of whom have argued in
the past that their trading systems do not allow for "naked" short
selling, "need to make significant technological changes to
their systems to comply with the new requirements." This could easily
become fodder for the many lawsuits that have been filed in this
long-standing national scandal called StockGate.
For some in the industry, the fact that the new date coincides with
"April Fool" was not lost.
The NASD noticed its members that it is "delaying the effective date of
amendments to Rule 3370 (Prompt
Receipt and Delivery of Securities?the "Affirmative Determination" Rule)
approved by the SEC in November 2003,1 until April 1, 2004.
"The amendments expand the scope of the affirmative determination
requirements to include orders received from broker/dealers that are not
members of NASD ("non-member broker/dealers"). The effective date of the
amendments originally was February 20, 2004," said the notice.
The proposed and now delayed rule is on the web at
http://www.nasdr.com/2610_2004.asp#04-03
The rule itself, while welcomed by small companies and their shareholders
in the U.S., nevertheless raised an outcry because the NASD's request to
put it into effect had set on a shelf at the SEC since 2001.
Meanwhile, CBS Marketwatch, a venture between Marketwatch (NASDAQ: MKTW)
and Viacom's (NYSE: V) CBS unit, has suggested that victims of securities
fraud may be able to file for theft claims on tax returns instead of
capital losses.
The scandal has embroiled hundreds of companies and dozens of brokers and
marketmakers, in a web of internaitional intrigue, manipulative
short-selling and cross-border accusations and denials.
Comments on Regulation SHO ended January 5, and may be viewed at
http://www.sec.gov/rules/proposed/s72303.shtml .
http://www.investorshub.com/boards/read_msg.asp?message_id=2418776