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| | [No title] (Site not responding. Last check: 2007-10-30) |
 | | A good first step would be to require the DTC to perform the function it was originally created and intended to perform: serve as the depository for stock certificates. |
 | | This proposed system is really no different from the system currently employed, except that the DTC is in charge of all the “checks and balances”, and, most significantly, never “checks” or “balances”, thus allowing an unlimited number of shares to be loaned out, on demand, regardless of supply. |
 | | The DTC really doesn’t care how many shares are loaned out, as the more shares the DTC loans out, the more fees, commissions, mark-up, spreads and resulting profits are realized by everyone in the DTC “system”, i.e., the DTC, broker-dealers, market makers, clearing houses, investment banks and, yes, offshore hedge funds (surprise, surprise). |
| www.sec.gov /rules/proposed/s72303/mjmorrison103003.txt (540 words) |
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