Post by hundredtoone on Dec 20, 2007 12:16:39 GMT -5
By: elvis-is-here
20 Dec 2007, 12:09 PM EST
Msg. 635323 of 635324
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US Judge Dismisses Naked Short-Selling Fees Suit Vs Brokers
Dow Jones
December 20, 2007: 11:32 AM EST
NEW YORK -(Dow Jones)- A federal judge on Thursday dismissed an antitrust lawsuit filed last year against the securities industry's largest brokerage firms over fees charged as a result of "naked short selling."
In an opinion Thursday, U.S. District Judge Victor Marrero in Manhattan threw out the suit, saying in part that a "fine and complex line" exists between conduct permitted by the Securities and Exchange Commission in its regulation of the securities industry and conduct that would typically not be permitted under federal antitrust laws, most notably certain daily communications between brokers-dealers to effectuate locating and borrowing securities for short sales.
"The threat of a 'nonexpert jury' mistaking lawful conduct under the securities laws as evidence of a conspiracy under the antitrust laws and exacerbated by the prospect of trebled damages, would place immense pressure on defendants to curtail the open exchange of information," the judge said. "Such antitrust suits would likely chill a broad range of activities that the securities laws permit and encourage, and would likely inhibit the short selling activity that provides market liquidity and pricing efficiency."
The complaint, originally filed by Electronic Trading Group LLC in April 2006 and amended earlier this year, had alleged that the major broker-dealers charged unearned fees, commissions or interest on short sales where those broker-dealers failed to borrow or deliver the stock to back a short position.
The lawsuit, which had sought class-action status, also alleged that the broker-dealers conspired amongst themselves to fix the cost to borrow securities by setting a minimum borrowing rate well above what rates would have been had there not been a conspiracy.
The defendants included broker-dealer units of Bank of America Corp. (BAC), Bear Stearns Cos. (BSC), Citigroup Inc. (C), Credit Suisse Group (CSR), Deutsche Bank AG (DB), Goldman Sachs Group Inc. (GS), Lehman Brothers Inc. (LEH), Merrill Lynch & Co. (MER), Morgan Stanley (MS) and UBS AG (UBS).
ragingbull.quote.com/mboard/boards.cgi?board=CMKI&read=635323
Well there you go...the CROOKS have been given the go ahead to keep doing what they have always done...be CROOKS IMO...this is more evidence that the market is totally screwed and this will have DIRE consequences IMO by totally destroying the confidence in the market/courts/regulators...the FOX now OWNS the hen house IMO...Flying Moose(cmkxunofficial)
20 Dec 2007, 12:09 PM EST
Msg. 635323 of 635324
Jump to msg. #
US Judge Dismisses Naked Short-Selling Fees Suit Vs Brokers
Dow Jones
December 20, 2007: 11:32 AM EST
NEW YORK -(Dow Jones)- A federal judge on Thursday dismissed an antitrust lawsuit filed last year against the securities industry's largest brokerage firms over fees charged as a result of "naked short selling."
In an opinion Thursday, U.S. District Judge Victor Marrero in Manhattan threw out the suit, saying in part that a "fine and complex line" exists between conduct permitted by the Securities and Exchange Commission in its regulation of the securities industry and conduct that would typically not be permitted under federal antitrust laws, most notably certain daily communications between brokers-dealers to effectuate locating and borrowing securities for short sales.
"The threat of a 'nonexpert jury' mistaking lawful conduct under the securities laws as evidence of a conspiracy under the antitrust laws and exacerbated by the prospect of trebled damages, would place immense pressure on defendants to curtail the open exchange of information," the judge said. "Such antitrust suits would likely chill a broad range of activities that the securities laws permit and encourage, and would likely inhibit the short selling activity that provides market liquidity and pricing efficiency."
The complaint, originally filed by Electronic Trading Group LLC in April 2006 and amended earlier this year, had alleged that the major broker-dealers charged unearned fees, commissions or interest on short sales where those broker-dealers failed to borrow or deliver the stock to back a short position.
The lawsuit, which had sought class-action status, also alleged that the broker-dealers conspired amongst themselves to fix the cost to borrow securities by setting a minimum borrowing rate well above what rates would have been had there not been a conspiracy.
The defendants included broker-dealer units of Bank of America Corp. (BAC), Bear Stearns Cos. (BSC), Citigroup Inc. (C), Credit Suisse Group (CSR), Deutsche Bank AG (DB), Goldman Sachs Group Inc. (GS), Lehman Brothers Inc. (LEH), Merrill Lynch & Co. (MER), Morgan Stanley (MS) and UBS AG (UBS).
ragingbull.quote.com/mboard/boards.cgi?board=CMKI&read=635323
Well there you go...the CROOKS have been given the go ahead to keep doing what they have always done...be CROOKS IMO...this is more evidence that the market is totally screwed and this will have DIRE consequences IMO by totally destroying the confidence in the market/courts/regulators...the FOX now OWNS the hen house IMO...Flying Moose(cmkxunofficial)
He made this astounding decision by presuming that every prospective juror in the United States is an idiot & a moron. If there was prima facia evidence (sufficient to sustain a finding) that there was a case, the judge should have let this, or any case, go forward and let the jury decide. Then, after presentation of evidence and a verdict rendered, the judge would still have the power to reverse the jury verdict (via a judgement N.O.V. - not withstanding the verdict). The attorneys definitely need to appeal this outrageous travesty of justice and file abuse of power charges against the judge. It sure sounds like someone whispered in the judge's ear and the reason seems clear enough; That the testimony presented would so outrage the jury that they would want to tar & feather just about everyone on Wall Street and in Washington, DC. In conlusion, "the boys" have the banks, business, the media, the markets, organized religion, all public & higher education, the drug companies, the politicians, the military and the judiciary firmly in their pockets. It would appear it is about time to bend over and either "pray" or kiss your beloved Constitutional Republic goodbye. RH