Post by bluediamonds on Mar 29, 2005 7:53:14 GMT -5
DTCC aids and abets illegal naked short selling...
DTC article from Ant and Sons investments!
Alwayslearning
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DTC article from Ant and Sons investments!
« Thread started on: Mar 28th, 2005, 4:56pm » <br>
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I just joined this newsletter a few weeks ago from Ant and Sons. Interesting info, some of it is repetitive for those who are members of other investment groups. They are at least taking a look at the reality of the DTC.
The Depository Trust Company declares itself as “a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the Securities and Exchange Commission. The depository brings efficiency to the securities industry by retaining custody of some 2 million securities issues, effectively “dematerializing” most of them so that they exist only as electronic files rather than as countless pieces of paper. The depository also provides the services necessary for the maintenance of the securities it has in custody.”
The Depository Trust & Clearing Corporation (DTCC) provides for clearance and settlement of equities, bonds, and various securities. The DTC is response for the custody of more than two million securities issues from the United States and elsewhere throughout the globe.
One of its main functions is when there is a stock transaction. The DTC is instructed to move securities from the selling broker's account to a NSCC (National Securities Clearing Corporation) account, and then from the NSCC's account to the buying broker's account. National Securities Clearing Corporation (NSCC) is the oldest and, in terms of the transaction volumes it processes, by far the largest of the clearing corporations. NSCC provides clearing and settlement, risk management, central counterparty services and a guarantee of completion for trades involving equities, corporate and municipal debt, money market instruments, American depositary receipts, exchange-traded funds, unit investment trusts, mutual funds, insurance products and other securities. NSCC also nets trades and payments among its participants, reducing the volume and securities and payment that need to be exchanged by an average of 97% each day. NSCC generally clears and settles trades on a T+3 basis. This is part of how a financial settlement is completed and how shares are accounted for.
In comments to the U.S. Securities and Exchange Commission regarding Regulation SHO in January, the 50 state regulators, through their association, the North American Association of Securities Administrators (NASAA) issued what many consider to be a strong warning that if the DTC is not dealt with in the final regulations, state regulators such as New York State Attorney General Eliot Spitzer may step to the plate.
In what many considered to have been explosive comments, Ralph Lambiase, NASAA president and Director of the Connecticut Division of Securities, warned "NASAA urges the Commission to reconsider its stance regarding the role of the Depository Trust and Clearing Corporation (the DTC). As a threshold matter, NASAA believes that the Commission should explicitly prohibit the DTC from lending more shares of a security than it actually holds. The ability of the overall proposed rule would be severely impaired unless the Commission undertakes to implement such a prohibition."
Recently, Eagletech Communications Inc. recently obtained a ruling of a New York court directing the Depository Trust and Clearing Corporation (DTCC) to produce trading records for Eagletech shares. Eagletech was represented in the motion by the law firms of Christian Smith & Jewell of Houston, Texas and Koerner Silberberg & Weiner, LLP, of New York City. Eagletech is a plaintiff in a stock manipulation action pending in the state of Florida. It commenced a special proceeding in the Supreme Court of the State of New York to obtain certain trading reports from the Depository Trust and Clearing Corporation. Subsequently it filed motions to compel the DTCC to comply with the subpoena. Attorney Wes Christian commented: "This is a significant victory in our on going battle to bring restitution to our clients for the brazen manipulations that were perpetrated against them. Our ability to obtain these records is essential. The judge's clear ruling takes us further down that road."
There are dozens of lawsuits being filed. Many of the pleadings allege that the DTCC operates a "stock lending" program that aids and abets illegal naked short selling, and in doing so, takes in almost $1 billion annually.
The DTC is owned by members of the financial industry. DTC board members include Michael C. Bodson, Managing Director, Morgan Stanley ( NYSE:MWD); Gary Bullock, Global Head of Logistics, Infrastructure, UBS Investment Bank ( NYSE:UBS); Stephen P. Casper, Managing Director and Chief Operating Officer, Fischer Francis Trees & Watts, Inc.; Jill M. Considine,Chairman, President & Chief Executive Officer, The Depository Trust & Clearing Corporation (DTCC); Also, Paul F. Costello, President, Business Services Group, Wachovia Securities ( NYSE:WB); John W. Cummings, Senior Vice President & Head of Global Technology & Services, Merrill Lynch & Co. ( NYSE:MER); Donald F. Donahue, Chief Operating Officer, The Depository Trust & Clearing Corporation (DTCC); Norman Eaker, General Partner, Edward Jones; George Hrabovsky, President, Alliance Global Investors Service; Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange; Thomas J. McCrossan, Executive Vice President, State Street Corporation ( NYSE:STT); Eileen K. Murray, Managing Director, Credit Suisse First Boston ( NYSE:CSR); James P. Palermo, Vice Chairman, Mellon Financial Corporation ( NYSE:MEL); Thomas J. Perna, Senior Executive Vice President, Financial Companies Services Sector of The Bank of New York ( NYSE:BNY); Ronald Purpora, Chief Executive Officer, Garban LLC; Douglas Shulman, President, Regulatory Services and Operations, NASD; and Thompson M. Swayne, Executive Vice President, JPMorgan Chase ( NYSE:JPM).
How can the DTC do their job and be clear of all conflict of interests if most of the board members are affiliated with big broker-dealers?
Ant & Sons Takes a Look
Sincerely, John
cmkxdiamond.proboards32.com/index.cgi?board=general&action=display&thread=1112054215
DTC article from Ant and Sons investments!
Alwayslearning
member is offline
Diamonds "to be or not to be"
Gender:
Posts: 1612
DTC article from Ant and Sons investments!
« Thread started on: Mar 28th, 2005, 4:56pm » <br>
--------------------------------------------------------------------------------
I just joined this newsletter a few weeks ago from Ant and Sons. Interesting info, some of it is repetitive for those who are members of other investment groups. They are at least taking a look at the reality of the DTC.
The Depository Trust Company declares itself as “a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the Securities and Exchange Commission. The depository brings efficiency to the securities industry by retaining custody of some 2 million securities issues, effectively “dematerializing” most of them so that they exist only as electronic files rather than as countless pieces of paper. The depository also provides the services necessary for the maintenance of the securities it has in custody.”
The Depository Trust & Clearing Corporation (DTCC) provides for clearance and settlement of equities, bonds, and various securities. The DTC is response for the custody of more than two million securities issues from the United States and elsewhere throughout the globe.
One of its main functions is when there is a stock transaction. The DTC is instructed to move securities from the selling broker's account to a NSCC (National Securities Clearing Corporation) account, and then from the NSCC's account to the buying broker's account. National Securities Clearing Corporation (NSCC) is the oldest and, in terms of the transaction volumes it processes, by far the largest of the clearing corporations. NSCC provides clearing and settlement, risk management, central counterparty services and a guarantee of completion for trades involving equities, corporate and municipal debt, money market instruments, American depositary receipts, exchange-traded funds, unit investment trusts, mutual funds, insurance products and other securities. NSCC also nets trades and payments among its participants, reducing the volume and securities and payment that need to be exchanged by an average of 97% each day. NSCC generally clears and settles trades on a T+3 basis. This is part of how a financial settlement is completed and how shares are accounted for.
In comments to the U.S. Securities and Exchange Commission regarding Regulation SHO in January, the 50 state regulators, through their association, the North American Association of Securities Administrators (NASAA) issued what many consider to be a strong warning that if the DTC is not dealt with in the final regulations, state regulators such as New York State Attorney General Eliot Spitzer may step to the plate.
In what many considered to have been explosive comments, Ralph Lambiase, NASAA president and Director of the Connecticut Division of Securities, warned "NASAA urges the Commission to reconsider its stance regarding the role of the Depository Trust and Clearing Corporation (the DTC). As a threshold matter, NASAA believes that the Commission should explicitly prohibit the DTC from lending more shares of a security than it actually holds. The ability of the overall proposed rule would be severely impaired unless the Commission undertakes to implement such a prohibition."
Recently, Eagletech Communications Inc. recently obtained a ruling of a New York court directing the Depository Trust and Clearing Corporation (DTCC) to produce trading records for Eagletech shares. Eagletech was represented in the motion by the law firms of Christian Smith & Jewell of Houston, Texas and Koerner Silberberg & Weiner, LLP, of New York City. Eagletech is a plaintiff in a stock manipulation action pending in the state of Florida. It commenced a special proceeding in the Supreme Court of the State of New York to obtain certain trading reports from the Depository Trust and Clearing Corporation. Subsequently it filed motions to compel the DTCC to comply with the subpoena. Attorney Wes Christian commented: "This is a significant victory in our on going battle to bring restitution to our clients for the brazen manipulations that were perpetrated against them. Our ability to obtain these records is essential. The judge's clear ruling takes us further down that road."
There are dozens of lawsuits being filed. Many of the pleadings allege that the DTCC operates a "stock lending" program that aids and abets illegal naked short selling, and in doing so, takes in almost $1 billion annually.
The DTC is owned by members of the financial industry. DTC board members include Michael C. Bodson, Managing Director, Morgan Stanley ( NYSE:MWD); Gary Bullock, Global Head of Logistics, Infrastructure, UBS Investment Bank ( NYSE:UBS); Stephen P. Casper, Managing Director and Chief Operating Officer, Fischer Francis Trees & Watts, Inc.; Jill M. Considine,Chairman, President & Chief Executive Officer, The Depository Trust & Clearing Corporation (DTCC); Also, Paul F. Costello, President, Business Services Group, Wachovia Securities ( NYSE:WB); John W. Cummings, Senior Vice President & Head of Global Technology & Services, Merrill Lynch & Co. ( NYSE:MER); Donald F. Donahue, Chief Operating Officer, The Depository Trust & Clearing Corporation (DTCC); Norman Eaker, General Partner, Edward Jones; George Hrabovsky, President, Alliance Global Investors Service; Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange; Thomas J. McCrossan, Executive Vice President, State Street Corporation ( NYSE:STT); Eileen K. Murray, Managing Director, Credit Suisse First Boston ( NYSE:CSR); James P. Palermo, Vice Chairman, Mellon Financial Corporation ( NYSE:MEL); Thomas J. Perna, Senior Executive Vice President, Financial Companies Services Sector of The Bank of New York ( NYSE:BNY); Ronald Purpora, Chief Executive Officer, Garban LLC; Douglas Shulman, President, Regulatory Services and Operations, NASD; and Thompson M. Swayne, Executive Vice President, JPMorgan Chase ( NYSE:JPM).
How can the DTC do their job and be clear of all conflict of interests if most of the board members are affiliated with big broker-dealers?
Ant & Sons Takes a Look
Sincerely, John
cmkxdiamond.proboards32.com/index.cgi?board=general&action=display&thread=1112054215