Originally posted on 6/18/2008 by Patrick Byrne
"Fate often saves the undoomed warrior when his courage endures.” – Beowulf
The list of villains implicated by Deep Capture’s analysis is seemingly endless, but the list of institutions which have failed our nation is not. They can be spoken to. They can be made aware of how you have lost confidence in them. They can be told how much they suck.
That list of institutions begins with the broker-dealers who enable hedge fund crookery in return for profitable prime brokerage business. Then comes the Self-Regulatory Organizations (“SRO’s”) who have direct responsibility for preventing crimes such as this from happening. Then comes the regulators (SEC) charged with supervising the SRO’s. Next comes Congress, which has failed ito provide the SEC proper political oversight. Last, but most importantly, comes the Free Press, our public realm’s ultimate watchdog, which has been licking its crotch instead of doing its job.
If you accept the analysis of DeepCapture, then you should let these groups know what you think of their work. Please be courteous and polite: I have been abrasive enough for all of us. You need only tell them that you are concerned about naked short selling and think they should be doing something about it. You might even abbreviate it by simply sending them emails that say, “DeepCapture.com”. They’ll know what you mean.
Call these brokers and tell them what you think of their conduct:
Goldman Sachs says: “This policy is designed to provide a channel of communication for employees and others who have concerns about the conduct of Goldman Sachs or any of its people……….” 1 (866) 520-4056 You might also give a ring to their press contact: 212-902-1000/5400
Morgan Stanley’s “Integrity Hot-line” says: “Concerns relating to ethical or business conduct matters, including accounting, internal accounting controls or auditing matters, may be brought to the Company’s attention” at 866-448-8434
Bear Stearns has no readily discoverable “Integrity Hotline” so just call their press person, Elizabeth Ventura (212) 272-9251, and tell her what you think.
It may be hard to believe, but our capital market is not really set up with a cop on the beat. It is set up as a number of clubs (such as AMEX, NASDAQ, and the New York Stock Exchange) which publish their own rules. The federal government’s role is to OK those rules, then come along and inspect whether clubs are following the rules they publish. That’s it.
The clubs are called, “Self-Regulatory Organizations”, or “SRO’s”. The SRO’s keep an eye on Wall Street in precisely the same sense in which, in a Tijuana cat-house, the guys with the mops and buckets can be said to be “keeping an eye on the place”.
Recently two of the SRO’s (the ones overseeing NASDAQ and NYSE) merged together and become the “Financial Industry Regulatory Authority” (“FINRA”). Contact FINRA’s Office of the Ombudsman at (240) 386-6270, or toll-free at (888) 700-0028, and tell them to get bigger mops.
There is a night watchman who walks around tapping on windows and calling out to the mop-boys, “Is everything all right in there?” and “Keep it down in there!” and “Are you guys hiring?” That watchman is The United States Securities and Exchange Commission. Please do not be too hard on the SEC. They are underpaid, over-worked, have no budget, and are lawyers. They are so far behind the whiz-kids they are supposed to be regulating that getting mad at them is like getting mad at someone for not knowing how to play the trombone (if someone does not know how to play the trombone, he just doesn’t know, and no amount of yelling at him is going to make him know).
That said, if you want to let the SEC know how unhappy you are with the service they are providing you as a citizen, then write their Inspector General, H. David Kotz ( email@example.com ). Incidentally, I understand that IG Kotz is part of the solution, not part of the problem. He was an attorney for the Peace Corps and, as the newly-minted OIG at the SEC, is more concerned about fixing things than he is about getting a job on Wall Street. So be polite, but let him know you care about this problem.
Another place you can turn is the United States Government Accountability Office. The GAO is probably the most respectable group in DC (setting aside the military). When Congress needs a non-partisan, no-bullshit answer to any question, they turn to the GAO. Write Chuck Young at firstname.lastname@example.org and let him know about your interest in naked short selling and the general issues raised in DeepCapture.com.
Many years ago I had occasion to visit Congress a half-dozen times. In the last few years I have again made a fair number of visits. In both periods I came away shocked: by and large these folks are good people, and they really do understand that they work for you. Every letter that a citizen sends is read by someone. Tallies are kept of the concerns that citizens express, and these tallies are synthesized for members of Congress.
In other words, that stuff you learned in 8th grade civics class actually is true: you can make a difference by writing your representatives. This site makes it easy to do so in seconds.
Again, be polite and courteous, please.
The New York Financial Press
My deepest disgust is reserved for the New York financial press. Here is why. Crooks are always going to be crooks. Professions are always going to be clubbish, looking out for their own. Regulators are always going to be captured (at least a little bit). Most politicians will always dance for the organ-grinders. But the press is supposed to be sacred. These phony journalists are, to me, like dirty cops, or pedophile priests. They are like the Washington press corps in the days before Watergate, too chummy with those they are supposed to be covering to do serious investigative work. Our nation suffered for it then, and is again now. Every time I catch a glimpse of Herb, Roddy, Bethany, Joe Nocera, Carol Remond, Jim Cramer, Joe Kernan (or for that matter, CNBC), I throw up a bit in my mouth. They are corrupt yellow-bellies. They are toadies to power and authority. They are sellout journalists.
If you agree, tell the NY financial press, “You should stop covering-up the naked short selling scandal on behalf of your crooked hedge fund pals.” Or, again, just abbreviate that by saying, “DeepCapture”.
email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org
And by the way, you should draw their attention to the recordings of their luminaries Joe Nocera, Dan Colarusso, and Roddy Boyd that appear about 7/8 of the way through Mark Mitchell’s piece. They’re pretty special.
Joe Nocera, Anti-Investigative Journalist
The business press outside of New York is not as bad. Many of them know that something deeply problematic is happening on Wall Street, yet they still take their lead from those whose beat is Wall Street. That makes them foolish, but not evil. Perhaps there are other dynamics at play as well. In any case, here are the emails of the business editors of dozens of top US newspapers. Politely let them know your concern with naked short selling, and with the general issues raised in DeepCapture.com.
email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; DGreising@tribune.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; erosen@DemocratandChronicle.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org
The General US Press
It is easy to criticize the general American press for having ignored a crime that affects citizens in every town in America. You may be surprised to learn that I do not join that criticism, for three reasons. First, this is a fairly technical issue, beyond the skills of most journalists to cover: To write about it one needs a grounding in economics, as well as general knowledge of our capital market, that most journalists do not possess. Second, any journalist getting interested in this would have to contend with a gigantic smokescreen blown by their captured New York colleagues. Third and last, any such journalist would have to contend with pressures brought from above. Taken together, it would have taken modern day Woodwards and Bernsteins to punch through the misdirection that was, until recently, the norm.
That said, now that the heavy lifting is done, and even the CEO’s of banks are themselves taking up the cudgel, there is no longer any cover-up to which to cling. Thus it would be shameful indeed of the general press to remain silent at this point. The general press can at least describe to the public what has finally come to light through efforts other than their own. If you agree, let them know about naked short selling, and Deep Capture, using the email addresses of editors at more than 100 newspapers and news organizations in the United States:
email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; Today@NBCUNI.com; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com; firstname.lastname@example.org; email@example.com
WHAT YOU MIGHT SAY
In contacting these parties please be courteous at all times. Most of them have themselves been taken in by a cover-up, or perhaps, are overwhelmed by the complexity of this fight. Give them this: it is pretty mind-blowing, and their decision to sit it out was, until recently anyway, understandable.
You do not have to say much. Just let them know that you are following the financial scandal known as “naked short selling” and think they should follow it too. Feel free to quote as much material as you want from the DeepCapture website. Many links are included within DeepCapture to stories that have appeared (the Bloomberg video, Forbes articles, etc.) so you should have no trouble sending supporting material, if you so desire.
Of course, you can always just copy Mark Mitchell’s story and send it to them (again, everyone is welcome to copy and redistribute DeepCapture’s material freely, and we waive all copyright claims, as long as you cite the source and provide a link back to Deepcapture). Mitchell’s piece pretty much says all that needs to be said, and coming as it does from a seasoned investigative journalist, may be just what other journalists need to get the scent of this story.
Lastly, we strongly encourage you to email these stories (or links to these stories) to as many of your friends as possible.