from Dr Decosta:

http://www.sidley.com/files/News/abc2cb ... liance.pdf (sorry link not working)

This is the link to the "Sidley" (legal group) report on SIFMA's annual compliance meeting on securities matters. It addresses 4 or 5 things pertinent to the "Medinahs (insert sfmi)" of the world. One of them has to do with the use of "3rd party providers". The scam here is that the dirty Wall Street players in the abusive naked short selling arena often delegate out certain functions to "3rd party providers". If the crooks get caught for abusive naked short selling practices the excuse is often "Oh son of a gun we thought our 3rd party provider, sometimes a prime broker, was taking care of executing the borrows before the short sales we were making. The 3rd provider then says golly we thought you were responsible for that. Gee whiz, over the last 30 years all of those short sales we made were actually "naked". Schucks, we'll have to look into the matter.


For those of you that saw "Inside Job" you got a taste of the levels of the insatiable greed of Wall Street. Unfortunately they didn't explore the mechanics of abusive naked short selling in any detail. In the Lehman Brothers case a bunch of banks enterred into complex banking relationships with Lehman that formed the "pillars" supporting Lehman. These banks then went out and borrowed shares and executed short sales of Lehman. When the supply of borrowable shares expired they continued to illegally naked short sell Lehman's stock. Then they simply simultaneously pulled the "pillars" supporting Lehman simutaneously and crash goes Lehman. A buddy of mine, Dr. Rob Shapiro, who used to serve as the Undersecretary of Commerce under the Clinton administration and one of his associates did an in-depth study of Lehman's demise. As it turns out the "failures to deliver" (associated with naked short selling) went up 151-fold (15,000%) near the time of Lehman's demise and nobody got busted.

Unfortunately for Lehman, due to all of their own shenannigans they fell into the "easy prey" category. All junior mineral explorers are by definition in the "easy prey" category during their development stages before they can gain acccess to positive cash flow which 99% never do.