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MONEY DAILY (excerpt)
Thursday, May 20, 1999
http://moneydaily.com
COPPER LYNCHING. Merrill Lynch [MER] bigwigs didn't
even have a chance to milk their competitor's troubles
for a smug grin before getting slapped with their own
shocker: a federal charge that the brokerage helped
manipulate world copper prices back in 1995. The
Commodity Futures Trading Commission, which regulates
pork belly futures and other such stuff, alleges the
nation's largest brokerage conspired with a Japanese
firm to raise copper prices. Merrill Lynch, whose
stock fell 2 1/4 to close at 76 3/16, has vehemently
denied the charges.
LOCK `EM UP! And it wasn't just big blue-blood
brokerages getting in trouble with the law. William
Killeen and Thomas William Bock, co-owners of the now-
defunct Oakford brokerage, and four of their brokers
`fessed up to front-running--placing their own trades
ahead of customers. This is the first time the SEC has
pursued such criminal charges. Federal sentencing
guidelines require the group to spend between 15 and
21 months at a Club Fed.
PLAYING WITH YOUR MONEY. Lest you think the online
brokers are any better, this week Iselin, N.J.-based
Datek forked over $60,000 in fines to the SEC this
week for allegedly using customer assets to cover its
own expenses! Remember, these are the same bozos who
promised customers allotments of the Goldman Sachs IPO
they never had. Expect more SEC and state regulatory
actions against online brokers in coming months.
JW
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