I’m getting ready to walk out the door Friday and I got an IM from a listener about the story MN1 we broke on Wednesday about
Brookstreet Securities under liquidation. “Did you see your story on CNBC?” No I replied. Humm that’s odd. I walked over to the TV and saw nothing. I made another attempt to call Brookstreet for the fourth time and some asshole “
vinny type” (John Thain paraphrase) told me to “stop butting my nose in to there business”
YOU TALKING TO ME?
Since I’m just as much an asshole ‘Vinny type” I called his Series 24 that runs the office.
I empitathized with him as many people will lose there jobs over a few people at this firm and I’m not about that when family’s are involved. Never the less I dug because something wasn’t right about this other then Fidelity the clearing firm was stonewalling (now I know why) there going to have there ass handed to them next week. I got a
link to this article from the Orange county Register from one of our reporters and called him.
Being a CMO story and
Orange County ala Robert Citron thing. I get the OC angle. Then the reporter told me in passing that Brookstreet was notorious for short selling and some of his sources told him that those positions would need to be covered.
WHAT????
There being liquated and
Fidelity has to cover those naked shorts. Like OMG! (OC talk) This is just the tip of the iceberg. What about the fines for non compliance on Reg SHO and them having to show a list of shorted stocks. This could go in the 500m plus range if Fidelity audity all its broker dealers.
The breaking news call aired live Friday on
MN1 and netted two symbols on the list PAYD and JAGH and take note of Goldman Sachs making a market in a company that makes 30k in rev a year.
More to come on this Monday. If you have any tips on this case send them on over at acoffey@mn1(dot)com
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