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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: Re: 14 Trading Firms Settle Charges for $69 Million

Yet another example of firms acting in direct conflict of interest against their clients. These trading houses charge huge commissions and promote themselves as agents to help their customers make money, however time and time again we discover they have been preying on the people that are paying them to provide services. The front-running is a tried and true scam for these guys because they get to hear of the large orders before they are entered and therefore can run their own proprietory trades first to capture the spread in the market. I also suspect that the firms which are employed to execute trading on behalf of the government, when buying to support financial stocks or through the activity of the PPT, will also be the beneficiaries of front running. Imagine being able to know exactly when the government was about to dump billions of dollars into the market, and buy the same stocks first...

The part the irritates me the most is that when they catch these crooks, they do not demand an admission of guilt. Does anyone think that big firms employing stables of lawyers would agree to pay $69 million if it was not illegal activity? Why do they let this kind of crime go, and yet the little guys face the full penalty of the law? Did anyone let Martha Stewart off with a small fine and no admission of guilt? And I would also suspect the $69 million in total fines is a tiny fraction of what was stolen from the clients in this scam.

cheers!

mike

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