SAJ---I have read that during the month long Congress break 135 supoenas have been served at some of the major brokerages in the stock borrow departments, so have said they are getting ready or "conditioning the industry" for when Congress returns on 9/6.
When you have both parties chairs involved Shelby and Bennett and now the curious one that joined late is Senator Collins chair of Homeland Security, we know the terrorists legally shorted airline stocks but this is totally different and you would have to be a whale and in the Cayman or another foreigh country. The problem is they are using our trading platforms to do the counterfeiting.
What do say when an attorney named William Frizzle in Tyler, TX proves his client has over a trillion shares counterfeited...that is a trillion not billion.
As I said use the archives at ncans.net or investigatethesec.com or americaneedstoknow.com these sites keep verifiable article. Google Dr Byrne of overstock.com he has been on several shows, he is represented by John O'Quin who was the attorney that settled the tobacco lawsuits for billions...he is prepared to spend 100 million to bring this to the public's attention.
A lot of people just can't believe this is going on and always revert back to short selling, the stunning thing is the DTCC is making money on these trades 1.1B last years but for some reason co-mingled the funds or that is what Donaldson said to Senator Bennett weeks before he resign after about 2 yrs on the job. The next big issue will be the out lawing of paper certificates called decertification 48 states have signed this bill...it is not good.
able
The solution, in my view, is really quite straightforward though. By rule or law, makes little difference, do two things:
1) Simply void any transaction that is not properly settled, and freeze that account's assets AND prohibit said account from trading for scalable periods,
2) Fine the crap out of the brokerage that attempted to execute the order. No appeals. Sliding scale upward for repeat offenses.
Overseas accounts? No problem. Insist that, before the order can be entered, the SEC and NASD receive proof that shares have been actually borrowed, the counterparty and the number of shares, and their present physical location.
Decertification as national policy, although companies have been doing so for years, is indeed a dreadful idea...the e-exchanges are little if any less vulnerable to fraud than a server farm.