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Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series?

Location: Blogs Bud Burrell - Front and Center    
Posted by:   bburrell 3/13/2007 6:51 PM

Bloomberg's "Phantom Shares" 25 minute segment is out of the can, and it can't be put back in, period.

I have been asked to consider a major series on the full scope of this scandal, which goes well beyond the numbers and securities discussed in this well prepared and solidly edited piece.  I will now ask if Bloomberg would be interested in partnering on this.

My most trusted senior political advisor advised me there is no formula for a "Graduated" workout on this, it has simply gone too far.

That means that somewhere we face a Finanical 9/11 of our own system's making, and there will be lifeblood in the water before it is over.

I haven't just told responsible authorities for SEVEN (that's right, 7) years this monster was headed at them.  In their bureaucratic arrogance and stupidity, they simply wouldn't listen to the facts. 

This "Humpty Dumpty" is broken, and God only hopes the pieces will never be put back together again in the same misbegotten way.
Copyright ©2007 Bud Burrell
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Comments (17)
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By Wicked World on 3/14/2007 8:19 AM

Bud, stay strong and turn the heat up on 'em! I'm in shock knowing that program actually aired.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By stryker-ny on 3/14/2007 8:20 AM
BRAVO BUD..THERE IS A GOD!!!!!!!
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By InvestigateThe SEC on 3/14/2007 8:21 AM
That's great news Bud!

Partnering with respected media as follow up, will finally alert the masses. I have forwarded the bloomberg link to all I know. Also sent to NYT, BW, and various other publications. With the cat out of the bag, all that would need to happan is a big scandal. There seems to be more than one that is brewing. Could the pending Tsunami complaint be one of them?

Anxious to hear more about your upcoming series, and if Bloomberg will participate. Thanks again for all.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By InvestigateTheSEC on 3/14/2007 8:21 AM
Please consider this angle in the upcoming series; How the Floor Broker (MM) uses open put contracts to create naked shorts in the markets.IMO the float for NFI is many multiples of it's company issued 37 million shares. Here is a daily post from the IV board updating open puts on NFI-

Open NFI put contracts now 246,106
This represents an increase of 15,245 contracts, and the posible creation of an additional 1.5 million NFI shares since last week.

Too bad Bloomberg didn't address this part of the "naked shorting" story.

Still 108,518 contracts, representing 10.8 million NFI shares, to be put or rolled before Monday.
-----------------------------------------------------------------------------------------

My guess is that this position will be rolled, and the open put position increased in order to manipulate the price of the common down.

Thanks for your consideration.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By old duffer on 3/14/2007 8:22 AM
Bud I hope they will take you up on the offer. Seems more likely the powers that be will pressue them to shut up.

Hope I am wrong!
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By ginger on 3/14/2007 8:22 AM
Thank you Bud and all the others io the front lines for your enless drive to get this story out.

I'm feeling much better today.

ginger
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By restofthestory on 3/14/2007 10:21 AM
Another part they didn't cover is how easy it is for a US individual or fund to start a foreign domiciled company, then funnel trades through Canada or Europe. The foreign depositories use netting and repurchase agreements to only fractionally back those trades. The foreign depositories can end up owing the US depositories.

Same with prime brokerage and custodian netting and repos. They let promises to deliver trade the same as actual shares.

I bet this problem is 100 times bigger than advertised. A good start, but the average viewer is going to think 1% fail +/- is no big deal.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By MarionPolk2000 on 3/14/2007 1:59 PM
It is interesting that Global Links was featured. While the story mentioned an investor who "bought" 100% of the shares, a second investor's 13D filing for an additional 15% interest (above the 100%) contains some very critical language of the SEC. Since the SEC followed up this filing with contact with the investor, they can't claim they were "unaware" of the problem as far back as the 2005 Senate hearing when the question was formally raised, but never answered.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By OSTK'S PROBLEMS...NAKED SHORTS??? Puleeeeze on 3/14/2007 5:54 PM
Bud, you really haven't looked at the financial house of cards that is OSTK until you've looked at a few of their most recent 10Qs, specifically the statements of cash flows and balance sheets.

Heavily debt laden, selling investments, issuing stock and debt to patch a $24 million massive hole in their cash flow from operations in their most recent quarter! Yikes!

As matter of fact

Check out these "Cash Flow from operations" all negative.

Q106 (72.754)m
Q206 (78.936)m
Q306 (78.130)m
Q406 (24.608)m

And even after selling investments, issuing stock and debt they still couldn't patch the operating cash flow deficit to the tune of (53.606)m in q1, (10.559)m q2, and (16.838)m q3 and it wasn't until late in q4 when they did a troubled debt restructure that generated bubkus and then issued a whopping $64 million in stock (also known as dilution) that they even came close to bridging the cash flow short fall to fund operations for the entire year.

You know anything about finance? I thought you did. Everything above points to the not so early signs of a company heading for BK.

Now the NSS scapegoating pointing the finger at everybody else but the company and its horrific management takes on a whole new light!

I’m not convinced of this “financial 9/11”, sorry.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By youtube on 3/14/2007 5:54 PM
http://www.youtube.com/watch?v=Bfi3Hxasm2s

Can we improve our ranking? Make sure you "favorite" the video after watching. You need to sign up for a free account. Also, link and post as widely as possible, email to politicians and media, etc.

#64 - Most Viewed (Today) - News & Politics - All
#38 - Most Viewed (Today) - News & Politics - English
#34 - Top Rated (Today) - News & Politics - All
#29 - Top Rated (Today) - News & Politics - English
#19 - Top Favorites (Today) - News & Politics - All
#13 - Top Favorites (Today) - News & Politics - English
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By bburrell on 3/14/2007 6:00 PM
Puleeze,

Pull your head out of your ass. I have read thousands of development stage companies' financials. Do you think this looks worse than Intel in 1974 when it traded for 1/64th of a dollar, or Amazon in 2000?

Financial Conspiracy to use a pool as assets to Counterfeit Commercial Securities is not only the straight Class B felony, it is Insurrection and Sedition according to the CJS.

On the other hand, Thanks for your post. You can be found when the authorities start looking for the criminals' co-conspirators. Trust me, you will hope they get to you first.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By Valueinvestor on 3/14/2007 6:46 PM
OSTK'S PROBLEMS...you seemed to have conveniently forgotten that the carpet bombing expertly carried out by the naked shorts that is alleged to have caused OSTK's stock price to do a free fall could in turn have doomed the prospects for growth of this developing company...under such selling pressure it could be argued that any developing company, no matter how well run or how ingenius its business plans, is likely to flounder and wither away...

Reply to Value Investor:

I heard the same crap about Intel, Microsoft, Oracle, Sybase, EMC, Apple, et al.

OSTK's problems are relatively less daunting than many of the companies that today are not only the core of this economy's job and wealth creation, period, no debate.

Intel was under a penny in 1974, and had a high of $.31 in 1981. The high it made in 1984 wasn't matched for 16 more years.

I know more about Elgindy style "carpet bombing" than the people who prosecuted him. His Mob killed over 2500 companies. I was in one of them.

His Mob and their like kinds need to be slaughtered wholesale, and their assets forfeited to their innocent victims. You might have to take out a few of the six or seven innocents in his coterie out of ignorance, but to quote that great leader Stalin, "To Make an Omelet, You have to be break a few eggs."

Criminal Naked Shorts create nothing, they only destroy. They turn a blind eye to 5th Amendment rights of people who actually own something they bought with their own real money. Unique Right to Disposition of an asset remains one of ten points of real property law, period.

The SEC allowed the shorts to function as unregulated vigilante policemen. The leadership of the SEC bears the full brunt of the responsibility for this pending fiscal tragedy. I feel no sympathy for them, nor will I come to their defense on any level. There is the old rag about being careful what you wish for. They are going to get their conduct back by an nasty order of magnitude.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By dtcc kin on 3/14/2007 6:48 PM
History of the banksters.

http://www.youtube.com/watch?v=zJ6YiZgHei8
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By Robert Ross on 3/15/2007 3:45 AM
Hi Bud,

I would like to know your opinion on these four areas:

1) The 2 million dollar fine against Goldman for failing to investigate trading irregularities was a farce. Why did the SEC not go after the ill-gotten gains (commissions) that Goldman derived from the trading action? If the offense was such that a fine was appropriate, then it seems like the profits from such an offense should have been fair game.

2) You mentioned that a tsunami was coming and that the underlying force of the wave would be due to evidence of wrongdoing found in documents that came from discovery in an unrelated case. Could this flurry of activity from the SEC against the NSS be an attempt to cover their collective butts by showing that they are getting tough on the perpetrators of NSS?

3) If #2 above is true and the SEC is indeed trying to cover their backsides, is the start of the tsunami being delayed so that the full scope of the SEC activity against NSS can be evaluated prior to the first wave? Or, is it even possible for the SEC and others to mitigate their role in the NSS scandal considering the evidence that was uncovered?

4) Is there any part of the actions that the SEC took against Goldman that seems like a genuine attempt to clean up the NSS? It really looks to me like they are only trying to placate the loudest criers. A 2 million dollar fine would be laughable if it were not so sad.

Thank you,

Reply:

The Goldman fine is to them nothing more than a cost of doing business.

I don't think the SEC will do anything, but they don't know what to do.

The Tsunami is only being delayed for limited resources, not any core problem with the causes for action.

It will come long before the SEC leadership pulls its head out of wherever. Don't confuse the leaders with the soldiers at the SEC. The latter I am sure are appalled by what they are seeing.

The Goldman fine is meaningless, and will change nothing.

Best, Bud.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By Retflyr1 on 3/15/2007 12:23 PM
Bloomberg did us all proud, but my movement has been going on for 6 weeks now, and has had 40,000 visits from the most part, the general public (public opinion)

http://www.ourplight.org
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By bburrell on 3/15/2007 3:26 PM
Game Over, from France.

"That means we win they lose ! Clause will be revoked to rescue their backs !
The beginning of the end has started ?"

With a vengeance. Expect no remorse here. B.


----- Message d'origine ----
De : Bud Burrell
À : Franz Aigner
Envoyé le : Jeudi, 15 Mars 2007, 22h34mn 57s
Objet : RE: SEC's Cox "SHO has proven insufficient to stop the problem"


There is a definite groundswell underway.



Cox’s statements tell us this game is over.



Now for blood money to be gotten back from the thieves.



Best, Bud.




--------------------------------------------------------------------------------

From: Franz Aigner [mailto:franz.aigner@yahoo.fr]
Sent: Thursday, March 15, 2007 1:47 PM
To: Bud Burrell
Subject: SEC's Cox "SHO has proven insufficient to stop the problem"



Dear Bud,

found this on Dave´s bloq !
What do you think ? Pressure is rising to eliminate the clause ???

"One of the reasons is the Grandfather provision in the rule as it was originally adopted, so we are now setting out, as you know, to eliminate that grandfather provision. And we will do more."

COX !


SEC's Cox "SHO has proven insufficient to stop the problem"

Location: Blogs Dave Patch's Blog


Posted by: dpatch
3/15/2007 6:22 AM

Straight from DC and the US Chamber Summit on Capital Markets is the story the mainstream financial media will not be writing about.



In the Q&A session with Chairman Cox one in the audience had the opportunity to hit Cox Squarely where he stands. Transcripts below:



AUDIENCE MEMBER: Chairman Cox, Jonathan Johnson, Overstock.com. You have mentioned in the past that abusive naked short selling is being used to manipulate stock prices down to the detriment of investors. Last month, the Chamber sent a letter requesting that Congress hold hearings on the issue and last night Bloomberg TV ran a piece, a special report, on this issue. What is the commission doing to stop this form of manipulation and when can we expect some action?

CHAIRMAN COX: Abusive naked short selling is of great concern to the entire Commission, to all of our members and the professional staff at the SEC. The regulation that was first adopted to get after this and related problems, Reg SHO, has proven insufficient to stop the problem. One of the reasons is the Grandfather provision in the rule as it was originally adopted, so we are now setting out, as you know, to eliminate that grandfather provision. And we will do more. Just as Congress may well have hearings on this issue and seek to get more information, so too are we looking at this. As you know, there's a technological side to this. This is very closely connected to our system of clearing and settlement in a very very big market, and we want to make sure that we use technology as our friend in relating, potentially and at all times, ownership and particular shares rather than waiting until the end of an arbitrary period of time to match those things up. It's those sorts of things that I think will eventually help us, I think, put an end to this kind of abuse. And I know that people victimized by it have a great deal of right on their side to complain about it.

CHAIRMAN DONAHUE: You have a lot of support from here in getting that done. Just let us know how we can get some muscle behind it. It is a serious challenge.



I’m sorry, did the Chairman say that Regulation SHO has not worked? Doesn’t that imply that FRAUD exists and is not being corrected? Was this paltry $2 Million parking ticked to Goldman Sachs supposed to be the catch all deterrent?



For a decade the SEC has dismissed the allegations of “unsophisticated investors” and of small business issuers that they were being manipulated. We were all “loonies” that simply did not understand the markets and this issue we speak of is not real.



Wall Street and the media lobbied hard dismissing this issue. In fact the same individuals that claim “those that complain about short selling are simply those deflecting the real issues” are now they are the ones complaining that settlement issues, lawsuits, and those that report on it are all barking up the wrong tree. It almost sounds like short sellers who go after CEO’s for what they call distractions are creating their own…Distractions.



And for the Chairman to say “And I know that people victimized by it have a great deal of right on their side to complain about it.” That is not what Annette Nazareth had to say to Floyd Norris in 2005. In fact Ms. Nazareth claimed we were simply whiners mad because our stocks did not go up. I guess Nazareth doesn’t believe victims have a right to whine.



I guess after all is said and done we, this small universe of individuals, proved that we were smarter than all of Wall Street and Wall Street regulators.



W

SEC's Cox "SHO has proven insufficient to stop the problem"

Location: Blogs Dave Patch's Blog


Posted by: dpatch
3/15/2007 6:22 AM

Straight from DC and the US Chamber Summit on Capital Markets is the story the mainstream financial media will not be writing about.



In the Q&A session with Chairman Cox one in the audience had the opportunity to hit Cox Squarely where he stands. Transcripts below:



AUDIENCE MEMBER: Chairman Cox, Jonathan Johnson, Overstock.com. You have mentioned in the past that abusive naked short selling is being used to manipulate stock prices down to the detriment of investors. Last month, the Chamber sent a letter requesting that Congress hold hearings on the issue and last night Bloomberg TV ran a piece, a special report, on this issue. What is the commission doing to stop this form of manipulation and when can we expect some action?

CHAIRMAN COX: Abusive naked short selling is of great concern to the entire Commission, to all of our members and the professional staff at the SEC. The regulation that was first adopted to get after this and related problems, Reg SHO, has proven insufficient to stop the problem. One of the reasons is the Grandfather provision in the rule as it was originally adopted, so we are now setting out, as you know, to eliminate that grandfather provision. And we will do more. Just as Congress may well have hearings on this issue and seek to get more information, so too are we looking at this. As you know, there's a technological side to this. This is very closely connected to our system of clearing and settlement in a very very big market, and we want to make sure that we use technology as our friend in relating, potentially and at all times, ownership and particular shares rather than waiting until the end of an arbitrary period of time to match those things up. It's those sorts of things that I think will eventually help us, I think, put an end to this kind of abuse. And I know that people victimized by it have a great deal of right on their side to complain about it.

CHAIRMAN DONAHUE: You have a lot of support from here in getting that done. Just let us know how we can get some muscle behind it. It is a serious challenge.



I’m sorry, did the Chairman say that Regulation SHO has not worked? Doesn’t that imply that FRAUD exists and is not being corrected? Was this paltry $2 Million parking ticked to Goldman Sachs supposed to be the catch all deterrent?



For a decade the SEC has dismissed the allegations of “unsophisticated investors” and of small business issuers that they were being manipulated. We were all “loonies” that simply did not understand the markets and this issue we speak of is not real.



Wall Street and the media lobbied hard dismissing this issue. In fact the same individuals that claim “those that complain about short selling are simply those deflecting the real issues” are now they are the ones complaining that settlement issues, lawsuits, and those that report on it are all barking up the wrong tree. It almost sounds like short sellers who go after CEO’s for what they call distractions are creating their own…Distractions.



And for the Chairman to say “And I know that people victimized by it have a great deal of right on their side to complain about it.” That is not what Annette Nazareth had to say to Floyd Norris in 2005. In fact Ms. Nazareth claimed we were simply whiners mad because our stocks did not go up. I guess Nazareth doesn’t believe victims have a right to whine.



I guess after all is said and done we, this small universe of individuals, proved that we were smarter than all of Wall Street and Wall Street regulators.



We identified 10 years ago that a problem existed that the regulators, members of Wall Street, and regulators all denied existed.



We, the “unintelligent investors” identified in June 2004, when the SEC voted approval of the present Regulation SHO law, that the law was inadequate to resolve the problem. Wall Street was happy with the law, the crooks were happy with the law, SIFMA was happy to get another boatload of Wall Street funding for a job well done, and the regulators were too stupid to know otherwise but we knew. We came to conclusions the experts could not come to. We did so because we had the open minds, the capacity to see reality.



As for the Greenberg’s, Weiss’, Boyd’s, Nocera’s, McLean’s etc…while the data speaks for itself. These members of the financial media have the integrity of armed robber going into an old age community. They fail to reposnd to the needs of the people because they fear their careers will be destroyed when their crooked sources dry up.





Clearly there are members of the media in attendance at the Summit as they are constantly reporting the speaks positions being argued. Funny how 100% of them overlooked this comment.




e identified 10 years ago that a problem existed that the regulators, members of Wall Street, and regulators all denied existed.



We, the “unintelligent investors” identified in June 2004, when the SEC voted approval of the present Regulation SHO law, that the law was inadequate to resolve the problem. Wall Street was happy with the law, the crooks were happy with the law, SIFMA was happy to get another boatload of Wall Street funding for a job well done, and the regulators were too stupid to know otherwise but we knew. We came to conclusions the experts could not come to. We did so because we had the open minds, the capacity to see reality.



As for the Greenberg’s, Weiss’, Boyd’s, Nocera’s, McLean’s etc…while the data speaks for itself. These members of the financial media have the integrity of armed robber going into an old age community. They fail to reposnd to the needs of the people because they fear their careers will be destroyed when their crooked sources dry up.





Clearly there are members of the media in attendance at the Summit as they are constantly reporting the speaks positions being argued. Funny how 100% of them overlooked this comment.
Re: Bloomberg's Gary Matsumoto Strikes First Major Media Blow on NSS, First of a Series? By rtway on 3/17/2007 6:26 PM
Bloomberg could be a household name overnight. They have got to find a way to show the dangers of the counterfitting shares as it relates to the publics 401's, pensions, IRA's using examples and charts. Strike while the iron is hot. You should be the commentator Bud because you can relate better to the public than a news man.
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