Post by soonerlew on Feb 14, 2009 22:08:25 GMT -5
seagull
Board Addict
Re: gossip 2/15/09
« Reply #3 Today at 7:31pm »
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by dicek... ines... stormgrey ... scruffy
by dicek
Mr. Richards has verified that the DTCC still holds common shares of CMKM Diamonds, Inc stock.
Mr. Richards also volunteered that perhaps the other shareholders he had spoken to, “misunderstood” what he was talking about when he discussed a long-pending distribution of the shares of stock still held by the DTCC.
The DTCC has no procedures, nor ‘machinery’ to allow them to distribute funds directly to public company shareholders; such distributions would in all cases be made by DTCC ‘participants,’ or by the company T/A, or by the company itself.
It has been generally agreed that those of us who received their CMKX certs - and are therefore 'bona fide' shareholders - only received their certs after the certs were paid for; paid for by the brokerages where we purchased our CMKX stock.
So if you had an account with say TD, or ET, or AT, and you received your CMKX cert, then your brokerage was able to get your cert from the Transfer Agent (Helen Bagley).
Some bokerages sold CMKX shares to shareholders - made an electronic note in the shareholder's account of how many shares the individual owned from their purchase - and then pocketed the money without ever having bought the shares on the market to make it a legal, or bona fide transaction.
When the cert pull was called, and a shareholder requested their cert from their broker - and that brokerage never legitimately bought the CMKX shares through the market in the first place - the TA would not have a record of that shareholder's stock transaction and so would not issue a cert for a CMKX stock purchase which had no record of having ever taken place.
The bokerage asks the TA for a cert for "Joe Blow" for say, 10 million shares of CMKX, and the TA says: "sorry, we have no record of Joe Blow owning 10 million shares, and so we cannot issue a cert".
What does the brokerage do now? How do they get the cert?
They can't buy back the shares on the open market because CMKX was delisted and no longer trades (clever Bob Mahue), and so where does the brokerage go to purchase the shares?
The "participants" go to the DTCC to purchase the CMKX shares that they need, which only then entitles the brokerage to be issued bona fide certs from the Transfer Agent.
Once a broker purchased CMKX shares from the DTCC, where would those funds from purchased shares go? They would most likely be held in an SEC or Dept of Treasury account, waiting for the go ahead authorization for dispersement to Bona Fide shareholders.
Why does the DTCC still have CMKX common stock in its possession? Because there most likely still exists a brokerage or two who have yet to purchase back the CMKX shares they sold to shareholders.
My guess would be that Citi is on that list, and that they need to purchase a lot of CMKX shares - a number large enough that it's causing them to balk, delay, receive extensions, whatever.
While the DTCC might not hold any CMKX funds for shareholders, they would certainly know of the funds, how much has been collected so far, and how much has yet to be collected.
They would also know who the "holdouts" are who have yet to purchase their short of CMKX stock.
You've all heard the expression:"It begins with Citi, and it ends with Citi".
It could very well be true.
~dicek
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by ines
Not sure that is all correct.
You say that they go to dtc to buy shares.. welll Dtc cant produce shares but only company can.
DTC settles the trades and also gurantees them.
But officialy its the company that issues the shares and not dtc.
Company in this case cmkx.
I mean the whole premise here you posted is that brokers go to dtc to purchase shares.. but DTC has no right to produce shares.. only the company itself does
~ines
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Ines, I believe the theory is that the shares authorized by D Roger Glenn were provided to the DTCC for it's broker members to "buy in" and cover their NSS position. What's being said here is that the DTCC holds them, not that the DTCC produced them.
~Storm
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by dicek
Exactly, Storm - the DTCC either has the Roger Glenn authorized shares or;
UC did indeed buy the float - as has been rumored, and those shares were stashed in one of UC's trusts - and those shares are being used by the DTCC to help those brokerages in CMKX stock to finally rectify their short positions.
What's interesting is why does the DTCC still have possession of CMKX common stock, when it supposedly emptied it vaults of CMKX stock some 3 years ago ...
... and why is the DTCC so hush hush about CMKX? Mr Richards of the DTCC seemed to be almost terrified about his having spoken about CMKX funds in the first place some years back.
I believe Richards did say funds for shareholders exist.
But the question remains: Where do they exist and who controls their release?
« Last Edit: Today at 7:10pm by dicek18 »
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by scruffy
I guess the question I have is "How many CMKX shares is the DTCC holding?". At least 630 something billion have already been certed and distributed, leaving only about 75B technically unaccounted for, I believe(?). Has Tyler been quietly issuing more shares to settle NSS?
~scruffy
cmkxgroup.proboards88.com/index.c....ay&thread=21030
Board Addict
Re: gossip 2/15/09
« Reply #3 Today at 7:31pm »
--------------------------------------------------------------------------------
by dicek... ines... stormgrey ... scruffy
by dicek
Mr. Richards has verified that the DTCC still holds common shares of CMKM Diamonds, Inc stock.
Mr. Richards also volunteered that perhaps the other shareholders he had spoken to, “misunderstood” what he was talking about when he discussed a long-pending distribution of the shares of stock still held by the DTCC.
The DTCC has no procedures, nor ‘machinery’ to allow them to distribute funds directly to public company shareholders; such distributions would in all cases be made by DTCC ‘participants,’ or by the company T/A, or by the company itself.
It has been generally agreed that those of us who received their CMKX certs - and are therefore 'bona fide' shareholders - only received their certs after the certs were paid for; paid for by the brokerages where we purchased our CMKX stock.
So if you had an account with say TD, or ET, or AT, and you received your CMKX cert, then your brokerage was able to get your cert from the Transfer Agent (Helen Bagley).
Some bokerages sold CMKX shares to shareholders - made an electronic note in the shareholder's account of how many shares the individual owned from their purchase - and then pocketed the money without ever having bought the shares on the market to make it a legal, or bona fide transaction.
When the cert pull was called, and a shareholder requested their cert from their broker - and that brokerage never legitimately bought the CMKX shares through the market in the first place - the TA would not have a record of that shareholder's stock transaction and so would not issue a cert for a CMKX stock purchase which had no record of having ever taken place.
The bokerage asks the TA for a cert for "Joe Blow" for say, 10 million shares of CMKX, and the TA says: "sorry, we have no record of Joe Blow owning 10 million shares, and so we cannot issue a cert".
What does the brokerage do now? How do they get the cert?
They can't buy back the shares on the open market because CMKX was delisted and no longer trades (clever Bob Mahue), and so where does the brokerage go to purchase the shares?
The "participants" go to the DTCC to purchase the CMKX shares that they need, which only then entitles the brokerage to be issued bona fide certs from the Transfer Agent.
Once a broker purchased CMKX shares from the DTCC, where would those funds from purchased shares go? They would most likely be held in an SEC or Dept of Treasury account, waiting for the go ahead authorization for dispersement to Bona Fide shareholders.
Why does the DTCC still have CMKX common stock in its possession? Because there most likely still exists a brokerage or two who have yet to purchase back the CMKX shares they sold to shareholders.
My guess would be that Citi is on that list, and that they need to purchase a lot of CMKX shares - a number large enough that it's causing them to balk, delay, receive extensions, whatever.
While the DTCC might not hold any CMKX funds for shareholders, they would certainly know of the funds, how much has been collected so far, and how much has yet to be collected.
They would also know who the "holdouts" are who have yet to purchase their short of CMKX stock.
You've all heard the expression:"It begins with Citi, and it ends with Citi".
It could very well be true.
~dicek
------------
by ines
Not sure that is all correct.
You say that they go to dtc to buy shares.. welll Dtc cant produce shares but only company can.
DTC settles the trades and also gurantees them.
But officialy its the company that issues the shares and not dtc.
Company in this case cmkx.
I mean the whole premise here you posted is that brokers go to dtc to purchase shares.. but DTC has no right to produce shares.. only the company itself does
~ines
-----------
Ines, I believe the theory is that the shares authorized by D Roger Glenn were provided to the DTCC for it's broker members to "buy in" and cover their NSS position. What's being said here is that the DTCC holds them, not that the DTCC produced them.
~Storm
----------
by dicek
Exactly, Storm - the DTCC either has the Roger Glenn authorized shares or;
UC did indeed buy the float - as has been rumored, and those shares were stashed in one of UC's trusts - and those shares are being used by the DTCC to help those brokerages in CMKX stock to finally rectify their short positions.
What's interesting is why does the DTCC still have possession of CMKX common stock, when it supposedly emptied it vaults of CMKX stock some 3 years ago ...
... and why is the DTCC so hush hush about CMKX? Mr Richards of the DTCC seemed to be almost terrified about his having spoken about CMKX funds in the first place some years back.
I believe Richards did say funds for shareholders exist.
But the question remains: Where do they exist and who controls their release?
« Last Edit: Today at 7:10pm by dicek18 »
--------
by scruffy
I guess the question I have is "How many CMKX shares is the DTCC holding?". At least 630 something billion have already been certed and distributed, leaving only about 75B technically unaccounted for, I believe(?). Has Tyler been quietly issuing more shares to settle NSS?
~scruffy
cmkxgroup.proboards88.com/index.c....ay&thread=21030