Post by hermannmaier0 on Oct 6, 2005 20:16:05 GMT -6
post from wamcmkx
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1millionaire.proboards60.com/index.cgi?board=general&action=display&thread=1128642721
dont know if this was posted earlier but
just sharing this from the other board enjoy the read!
biz.yahoo.com/prnews/051004/nytu154.html?.v=30
The news of the bankruptcy of Crown Financial Holding Inc., (and the action of it’s wholly- owned subsidiary Crown Financial Group, Inc. September 30,) in my opinion could go along way in explaining just how a settlement could be reached between CMKX, Brokers, Market Makers, SEC and the DTC.
It has always concerned me as to how the brokers, MM’s, SEC and DTC could come to settlement terms with CMKX’s reported very large naked short position without loosing face and credibility as pillars of the financial system in the United States. Talk of a public settlement has never been a realistic option imo because of all the different entities involved and a public announcement would undoubtedly cause other companies to follow suit and that would be major problems for all.
In my opinion it is no coincidence that John Edwards (who reportedly held controlling interest in Crown) is closely associated with both CMKX and Crown Financial Holding who through its subsidiary Crown Financial Group was a major Market Maker in CMKX for a very long time. Those who watched Level II for the biggest part of 2004 always saw Jefferies, Knight or Crown as the most active market makers at a time when billions of shares were being traded on a daily basis.
When the CMKX naked short problem became unsolvable because of the issuance of dividends by the company it caused the SEC, DTCC and CMKX to negotiate a plan that would satisfy all parties involved.
The high volume numbers we witnessed during the latter part of 2004 could have been all of the naked short market makers rolling all of their CMKX naked short shares into one Market Maker (Crown Financial Group) for the purpose of clearing their books. This plan would then lead to the eventual bankruptcy and collapse of Crown and the SEC and DTCC could then step in and settle all outstanding NSS of this single entity without causing a major disruption in the markets.
My observations along with the Edwards, Crown, CMKX connections lead me to believe that the Crown Group was used as scapegoat for all of those brokers and market makers who suddenly found themselves in an irreversible NSS positions.
This plan would allow the MM’s and brokers who were a part of the CMKX NSS problem to quietly pay their share of the debt (predetermined settlement) to the DTC without publicly getting their collective hands dirty. The DTC would then in turn pay company shareholders as a part of the insurance it offers as insurers of an orderly market place.
The plan would also allow the SEC to take action against CMKX for the purpose of slowing share volume to a crawl until the company and SEC and DTC could work out the above mentioned deals with various brokers and Market Makers. During this same period of time the MM’s would be working out deals with Hedge funds and other short sellers.
The DTC and SEC could stay out of the spotlight as to their involvement as it would come down to a small market maker (Crown Financial Group) who is now bankrupt as being the major perpetuator of the problem. It would not surprise me if the shareholders of Crown end up with some type of compensation when all is said and done.
This theory might explain the seemly strange occurrences in the SEC hearing which include Mr. Cassavant pleading the 5th, the failure to call certain key witnesses who could have shed light on financial records and the company’s lack of interest in bringing forth evidence concerning naked short sales. It could also explain why other key players weren’t served subpoenas and forced to testify at the hearing.
Further, it might explain as to the reasons why the SEC commission decided to review the judges ruling to revoke as all evidence points to the SEC case as being solid (on the outside at least). It also would explain the company’s silence from the suspension to the present and the “event” that would have to occur to get us to the end game.
All of course my opinions
wamcmkx
----------------------------------------------------------
1millionaire.proboards60.com/index.cgi?board=general&action=display&thread=1128642721
dont know if this was posted earlier but
just sharing this from the other board enjoy the read!
biz.yahoo.com/prnews/051004/nytu154.html?.v=30
The news of the bankruptcy of Crown Financial Holding Inc., (and the action of it’s wholly- owned subsidiary Crown Financial Group, Inc. September 30,) in my opinion could go along way in explaining just how a settlement could be reached between CMKX, Brokers, Market Makers, SEC and the DTC.
It has always concerned me as to how the brokers, MM’s, SEC and DTC could come to settlement terms with CMKX’s reported very large naked short position without loosing face and credibility as pillars of the financial system in the United States. Talk of a public settlement has never been a realistic option imo because of all the different entities involved and a public announcement would undoubtedly cause other companies to follow suit and that would be major problems for all.
In my opinion it is no coincidence that John Edwards (who reportedly held controlling interest in Crown) is closely associated with both CMKX and Crown Financial Holding who through its subsidiary Crown Financial Group was a major Market Maker in CMKX for a very long time. Those who watched Level II for the biggest part of 2004 always saw Jefferies, Knight or Crown as the most active market makers at a time when billions of shares were being traded on a daily basis.
When the CMKX naked short problem became unsolvable because of the issuance of dividends by the company it caused the SEC, DTCC and CMKX to negotiate a plan that would satisfy all parties involved.
The high volume numbers we witnessed during the latter part of 2004 could have been all of the naked short market makers rolling all of their CMKX naked short shares into one Market Maker (Crown Financial Group) for the purpose of clearing their books. This plan would then lead to the eventual bankruptcy and collapse of Crown and the SEC and DTCC could then step in and settle all outstanding NSS of this single entity without causing a major disruption in the markets.
My observations along with the Edwards, Crown, CMKX connections lead me to believe that the Crown Group was used as scapegoat for all of those brokers and market makers who suddenly found themselves in an irreversible NSS positions.
This plan would allow the MM’s and brokers who were a part of the CMKX NSS problem to quietly pay their share of the debt (predetermined settlement) to the DTC without publicly getting their collective hands dirty. The DTC would then in turn pay company shareholders as a part of the insurance it offers as insurers of an orderly market place.
The plan would also allow the SEC to take action against CMKX for the purpose of slowing share volume to a crawl until the company and SEC and DTC could work out the above mentioned deals with various brokers and Market Makers. During this same period of time the MM’s would be working out deals with Hedge funds and other short sellers.
The DTC and SEC could stay out of the spotlight as to their involvement as it would come down to a small market maker (Crown Financial Group) who is now bankrupt as being the major perpetuator of the problem. It would not surprise me if the shareholders of Crown end up with some type of compensation when all is said and done.
This theory might explain the seemly strange occurrences in the SEC hearing which include Mr. Cassavant pleading the 5th, the failure to call certain key witnesses who could have shed light on financial records and the company’s lack of interest in bringing forth evidence concerning naked short sales. It could also explain why other key players weren’t served subpoenas and forced to testify at the hearing.
Further, it might explain as to the reasons why the SEC commission decided to review the judges ruling to revoke as all evidence points to the SEC case as being solid (on the outside at least). It also would explain the company’s silence from the suspension to the present and the “event” that would have to occur to get us to the end game.
All of course my opinions
wamcmkx
