SEC passes meaningless proxy voting rule sec.gov/news/press-rel… while ignoring Broadridge admission of tossing out votes to keep proxy count balanced b4 company sees: “Step 5:…a cap is put in place equal to total bank/broker position identified on record keeper’s file... 1/6
... This cap limits how many shares… [are]…applied to the official tabulation results.” broadridge.com/article/vote-i… 2/6
Nov 8, 2022 • 5 tweets • 2 min read
Euro-Investors: Clearstream offers service to recycle (resubmit) failed trades. Trade is cancelled after 60 calendar-days unless broker tags-in within 45 days to restart the count. clearstream.com/clearstream-en…
This is similar to NSCC's "resubmit" service where tonight's fails are resubmitted for another chance at settlement tomorrow. I have not seen anything similar to the 60 calendar-day cancellation in the USA.
Nov 1, 2022 • 6 tweets • 3 min read
As you watch this tomorrow (Nov 2) and/or read about the Fed "setting interest rates," understand that the Fed does not directly control interest rates – trust me on this one, I edited briefing documents for a voting member of the #FOMC in the 1980s.
Dr.S Standard Lecture: Interest is the price of money – Fed tries to increase supply of money [buys bonds => securities in, money out] to decrease the price of money (interest rate). Conversely, Fed sells bonds to decrease supply of money which should increase interest rate.
Jun 27, 2022 • 6 tweets • 1 min read
After acknowledging moral hazard problem P107, House “Game Stopped” Report sets stage for routine broker bailouts because DTCC is “systemically important” enough for a bailout [FN601]. Ah, well. The more things change the more they stay the same, right? 1/6
P107 …represents moral hazard that undermines deterrent value of Excess Capital Premium charge [ECPC]. Specifically, firms may not be deterred from riskier trading practices because they [know ECPC] may be modified or waived, when risk of default is greatest. 2/6
Mar 4, 2022 • 5 tweets • 2 min read
When I set out to help investor and entrepreneurs, I believed the only possible solution was for Congress to act to force trade settlement. I believed that until I talked to Congress (Naked, Short and Greedy, Chapter 7). 1/4
Then I believed the only possible solution was in the courts. I believed that until I saw lawsuits by a multitude of public companies and investors fall apart under opposition from Wall Street’s self-regulatory rules (Chapter 9). 2/4
Nov 24, 2021 • 5 tweets • 1 min read
As promised in the Space last Friday, 5 Bullet Points for comments on S7-18-21 (SEC proposed Rule 10c-1). Real reform for securities lending must include: (1) Notifying public about who is borrowing & lending shares (not just which company’s shares are borrowed or lent),
(2) Notifying retail investors that their shares are being lent, (because (a) they don't get to vote & (b) they don't get tax-qualified dividends), (3) Sharing any revenue earned from lending their shares with retail investors,
