The Depository Trust & Clearing Corporation (DTCC) is the enabler of naked short selling, a federal crime, and refuses to collaborate with law enforcement on those rare occasions when inquiries are made. The Security Exchange Commission (SEC) and the US Senate Committee on Banking, Housing, and Urban Affairs both appear to be complicit in enabling and covering up naked short selling.
Article: tZERO secures US$5M equity investment
Article - MediatZERO secures US$5M equity investment
Nawaz Ahmed
BraveNewCoin, 23 April 2020
tZERO is Patrick Byrnes’ attempt to utilize blockchain technology to replace traditional institutional market structures.
Project Medici intends to create a blockchain-based securities exchange, and Byrne had stated that he was interested in listing Overstock securities on a blockchain-based exchange. The project was officially announced on October 6th at the Inside Bitcoins Las Vegas conference.
The long term goal was to compete with the Depository Trust and Clearing Corporation (DTCC).
Article: How phantom shares on Wall Street threaten U.S. companies and investors
Article - MediaHow phantom shares on Wall Street threaten U.S. companies and investors
Lucy Komisar
The Komisar Scoop, 26 March 2020
As stocks are in free fall, a scam run by the big banks/broker-dealers for the benefit of themselves and their hedge fund clients threatens to worsen the situation of large and small American companies and investors.
It’s when the bank/broker-dealers buy stocks, pocket the money and fail to deliver to clients the shares they are supposed to settle through the national stock clearing house. In another industry that might be called embezzling.
Article: Part 10 of Illegal Naked Shorting Series: Legal Shorting of Stocks is a Loser’s Game but Illegal Naked Shorting Transforms It into a Winner’s Game
Article - MediaLarry Smith
Smith On Stocks, 24 July 2019
When I launched my research on stock manipulation and the prominent role played by illegal naked shorting, I believed that I had a fair understanding of the subject and could knock out comprehensive research in just a few blogs. However, as I dug in I was taken aback at how complex and widespread this subject is. I think that a team of hundreds of experts with unlimited resources would have difficulty ferreting out all of the details on a scam that Wall Street has been perpetrating and perfecting for over 40 years.
Article: Part 9 of Illegal Naked Shorting Series: The Risk/ Reward of Shorting Versus Buying Stocks is Extremely Unfavorable
Article - MediaLarry Smith
Smith On Stocks, 11 July 2019
In this report, I contrast the risk and reward of shorting versus buying stocks. When you unravel the economics and risk/ reward of shorting, it is clear to me that this is a highly risky, low return strategy. As argued in this report, I see shorting as a losers game if employed consistently over time as opposed to buying stocks which is a winners game. I see shorting as a niche strategy that is applicable on a short term trading basis for a very limited number of stock trades. I think you will agree with me as I go through the major risk and reward elements of shorting.
Article: Part 8: Illegal Naked Shorting Series: Who or What is Cede and What Role Does Cede Play in the Trading of Stocks?
Article - MediaLarry Smith
Smith On Stocks, 1 July 2019
ost investors when they buy a publicly traded stock believe that they own a part of some company. They think that somewhere there is a stock certificate or some indication of ownership that has their name on it, but this is not the case. When you buy a “stock” you are actually purchasing a security that affords certain entitlement rights related to registered stock which actual owners hold. The registered shares of a private company are directly owned by shareholders. In contrast, the registered shares of nearly all publicly traded equities are owned by Cede & Co., which is the nominee of the Depository Trust Company (DTC). (A nominee is a company whose name is given as having title to a stock, but does not receive the financial benefits of ownership.) Cede is a subsidiary of the Depository Trust Company (DTC) which is a subsidiary of the Depository Trust and Clearing Corporation (DTCC) and the DTCC is a private company owned by elite Wall Street firms and money center banks. If you need background or a refresher on DTC and DTCC, click on this link. Effectively, elite Wall Street firms and money center banks, not institutions and individual investors, own almost all of the registered shares of publicly traded companies in the US.
Article: Part 7: Illegal Naked Shorting: DTCC Continuous Net Settlement and Stock Borrowing Programs Have Loopholes That Facilitate Illegal Naked Shorting
Article - MediaLarry Smith
Smith On Stocks, 31 May 2019
There is an integral relationship between the DTCC and hedge funds. The DTCC is owned by Prime Brokers; these are Goldman Sachs, Morgan Stanley, Merrell Lynch and other household name investment banks. Prime Brokers provide basic services to hedge funds that allow them to trade with multiple brokerage houses while maintaining a centralized master account at their prime broker containing cash and securities. The prime broker offers stock loan services, portfolio reporting, consolidated cash management and other services. Hedge fund support is a very meaningful percentage of the net income of Prime Brokers.
Article: Part 6 Illegal Naked Shorting: The SEC’s Regulation SHO is Intended to Prevent Illegal Naked Shorting, But is Ineffective
Article - MediaLarry Smith
Smith On Stock, 22 May 2019
In previous blogs I traced the history of stock trading from the 1960s when stock certificates and cash were physically exchanged to settle trades to the paper free, totally electronic system that exists today. Instead of owning stock certificates, we now own digital entries located somewhere in the vaults of the inscrutable Depository Trust and Clearing Corporation (DTCC). This electronic system is absolutely critical to the functioning of our capital markets and our strong economic system. However, the DTCC and the prime brokers who own it have made the clearing and settlement system virtually non-transparent. This enables the routine manipulation of primarily but not exclusively, small stocks through illegal naked shorting.
Article: Part 5 in Series on Illegal Naked Shorting’s Role in Stock Manipulation: Traditional Shorting Compared to Naked Shorting (Both Legal and Illegal)
Article - MediaLarry Smith
Smith On Stocks, 29 April 2019
This is the fifth blog in the series that I am writing to describe how illegal naked shorting is used broadly and massively to manipulate the stock prices of (primarily small) companies. I have been studying illegal naked shorting for nearly five years and I have found it to be incredibly complex and disturbingly it is widely practiced on Wall Street. My earlier blogs were intended to build a foundation needed to understand future blogs.
Article: Part 4 in Series on Illegal Naked Shorting’s Role in Stock Manipulation: Who are the Key Players?
Article - MediaLarry Smith
Smith On Stocks, 17 April 2019
I worked on Wall Street as an analyst for nearly 40 years and was involved in the stock market on a day to day basis. Throughout this time, I was focused on fundamental developments that would give an insight into the potential for a company to grow its sales and profits and then trying to translate that into future stock performance. Like many investors, I believed that this was the overarching factor in predicting future stock performance. I had no inkling and I would have been shocked if someone had told me ten years ago what the experience of the past decade has taught, i.e., in many, many cases (particularly for small companies) fundamentals are not the most important factor determining the stock price.
Article: Part 3 in Series on Illegal Naked Shorting’s Role in Stock Manipulation – Prime Brokers and the DTCC Have a Troubling Monopoly on Clearing and Settling Stock Trades
Article - MediaLarry Smith
Smith On Stocks, 11 April 2019
I am not going to attempt to show in any detail how the clearing, settlement and depositing of securities system evolved from the crisis of the mid-60s to what is now a totally paperless, electronic system. But briefly, Congress passed legislation in 1971 for two new service organizations, whose objectives were the speeding up the clearance and settlement process. The Depository Trust Company (DTC) was established as the nation’s principal securities depository, with the mission to convert paper certificates to electronic book entries and to immobilize the paper certificates and keep them in a vault at the DTC. (No more shuttling by messengers.) The National Securities Clearing Corporation (NSCC) was established at the same time to speed up clearance and settlement services.
Article: Part 2 in Series on Illegal Naked Shorting’s Role in Stock Manipulation- Conventional Wisdom on How Short Sales are Executed
Article - MediaLarry Smith
Smith On Stocks, 4 April 2019
The current conventional wisdom on how a short sale is transacted is that a short seller borrows stock from a specific investor who is long the stock, then at some later point buys back the stock in the open market. They then return the stock to that “same specific investor” from whom it was borrowed. Before I met ShareIntel, this is what I thought happened, but as I began to work with them and to do more research on my own, I was jolted when I realized that this is not what goes on in the real world of Wall Street and in later reports I will address how the actual process facilitates widespread naked shorting that enables stock manipulation by some hedge funds..
Paper: Counterfeiting Stock
PaperCounterfeiting Stock
Anna McParland
The Creation of Counterfeit Shares — There are a variety of names that the securities industry has dreamed up that are euphemisms for counterfeit shares. Don’t be fooled : Unless the short seller has actually borrowed a real share from the account of a long investor, the short sale is counterfeit. It doesn’t matter what you call it and it may become non–counterfeit if a share is later borrowed, but until then, there are more shares in the system than the company has sold.
The magnitude of the counterfeiting is hundreds of millions of shares every day, and it may be in the billions. The real answer is locked within the prime brokers and the DTC. Incidentally, counterfeiting of securities is as
It is estimated that 1000 small companies have been put out of business by the shorts.
PDF (12 Pages): Paper Counterfeiting Stock
Petition: Stop Wall Street From Fraudulent Trades That Short Sell & Undermine the American Dream
Petition
Stop Wall Street From Fraudulent Trades That Short Sell & Undermine the American Dream
MoveOn.org
The Wall Street trading practice known as “naked short selling” is destroying the American dream by threatening our economy while robbing investors, businesses, retirees, homeowners, and hard-working Americans of trillions of dollars and jobs. This illegal practice helped bring down our economy in 2008 and is a concern of all Americans—both Republicans and Democrats. We demand that the White House and members of the Senate Banking Committee and House Financial Services Committee work with new leadership at the SEC and a new Congress to put an end to naked short selling, once and for all!
Article: Our Watchdogs and the Financial Scandal of the Century
Article - MediaOur Watchdogs and the Financial Scandal of the Century
Mark Mitchell
Deep Capture, 3 April 2009
“Accountability – Integrity – Reliability”
That’s the motto of the Government Accountability Office, and it almost makes you believe that there really is a functioning watchdog – somebody, aside from us Internet loons, to investigate and report on the incompetence and malfeasance that pervade our public institutions.
Certainly, there were high hopes when the GAO began investigating the Securities and Exchange Commission’s oversight of the Depository Trust and Clearing Corporation (DTCC), a black box Wall Street outfit that is at the center of one of the great financial scandals of our era.
