01-07-14 -- Patrick Byrne - (VIDEO & MP3 LOADED) 
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Subject:  Declare Your Independence with Ernest Hancock

01-07-14 -- Patrick Byrne - (VIDEO & MP3 LOADED)

Patrick Byrne (CEO Overstock.Com) comes on the show to provide an update on Overstock.Com, Bitcoin, market conditions/predictions for 2014 Patrick Byrne speaks at FreedomSummit 2014 www.FreedomSummit.com

Program Date:  Tuesday, January 7, 2014
Full Show:
Media Type: Audio   •  Time: 143:0 Mins and Secs

01-07-14 -- Patrick Byrne - (VIDEO & MP3 LOADED)

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Email: ernesthancock@cox.net
Website: www.ernesthancock.com

Declare Your Independence with Ernest Hancock strives to create an understanding of the Philosophy of Liberty. Understanding is far more important than agreement -- that will come in its own time.


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HOUR ONE

Media Type: Audio   •  Time: 143:0 Mins and Secs
Guests Ernest Hancock
Topics Freeedom's Phoenix Headline News


Patrick Byrne (CEO Overstock.Com) comes on the show to provide an update on Overstock.Com, Bitcoin, market conditions/predictions for 2014

Patrick Byrne will be speaking at FreedomSummit2014

www.FreedomSummit.com

 
 
Hour 1 -- Freedom's Phoenix Headline News
 
Hour 2 -- Freedom's Phoenix Headline News
 
Hour 3 -- Patrick Byrne (CEO Overstock.Com) comes on the show to provide an update on Overstock.Com, Bitcoin, market conditions/predictions for 2014

CALL IN TO SHOW: 602-264-2800

 
January 7th, 2014
Declare Your Independence with Ernest Hancock
on LRN.FM / Monday - Friday
9 a.m. - Noon (EST)
Studio Line: 602-264-2800 
 

Hour 1
2014-01-07 Hour 1 Freedom's Phoenix Headline News (Video Archive): 

2014-01-07 Hour 1 Freedom's Phoenix Headline News from Ernest Hancock on Vimeo.

Ernest Hancock
Freedom's Phoenix Headline News
 
Understanding How Screwed We All Are "The Greatest Depression" – by Ernest Hancock
 
Stuck in the Baltimore/Washington airport for 8 hours due to a canceled flight, I had time to listen to an Interview posted on FreedomsPhoenix by Editor Mike Dugger (over the next 24 hours I would listen to the program 3 times). This started us down a path of news coverage that exposed a whole new level of understanding about just how much the planet has been plundered by those,… that can.
 
 
Bloomberg even won an Emmy for a 30 minute TV program telling a small part of the story (wmf LINK)
 

Feature Article
"Declare Your Independence with Ernest Hancock" - August 6th 2009
Ernest Hancock
   Bud Burrell - Security Industries Veteran explains EXACTLY how America was Robbed! (Great Show... I highly Recommend you listen to this to understand what's happened and why)

Feature Article  •  Global Edition
Declare Your Independence with Ernest Hancock
"Declare Your Independence with Ernest Hancock" - August 19th 2009
Ernest Hancock
   Bank of International Settlements - Depository Trust Company - Federal Reserve & the largest bank robbery in human history
  Susanne Trimbath, Ph.D. is CEO and Chief Economist of STP Advisory Services. Her training in finance and ec

 
Summary:
 
Central bankers devised a way of taking physical possession of all of the stocks in every Initial Public Offering (as far as I can tell it seems like _ALL_). This allows for selected entities (broker friends etc.) to use the stocks as “collateral” in such a way that they are counterfeited into many many many many times their value into ‘the market’. The term most associated with this practice is "Naked Short Selling".
 
Sooner or later someone is going to want to see the actual stock that they purchased or whatever is being used as collateral. Well, the 'settling of accounts' has been going on in Europe unknown to the general public in America for many months in an attempt to lessen the damage to Europe’s Economy.
 
The stories below include press releases by MARKIT and the DTCC announcing their combined efforts to make an accurate accounting of all of the trades in the world so that they can be balanced with what is actually available. What was interesting to me was how cryptic the stories were about who/what MARKIT and DTCC was. In none of the articles did they even provide the full name of the DTCC (so I took a look and did some research after a friend told me about their nickname that he read about in 1999. CEDE (as in turning over something to another) comes from: “Depository Trust Company (DTC) A central securities certificate depository (also known as "CEDE" by virtue of its nominee name, CEDE & Co.) It seems that the holders of the actual stocks have a sense of humor,... kind’a like the Total Information Awareness logo designers (the Pyramid/Earth logo below a few paragraphs down is real. We thought it was joke too back in 2002/03 when this was rolled out, but it was real. After a lot of criticism it was changed)
 
 
 
DTCC is a member of the Federal Reserve System (they are the “holders” of the actual stocks as far as I can tell). Now we have "The BANK" (the Central Bankers we have been warned often about by those tracking such things), The Bank of International Settlements has just announced their plan to “audit” the Federal Reserve (something that even the US Government can’t do).
     (Speculation: Oh,... and if The Bank of Settlements has some auditing 'authority' over the Federal Reserve, and Public companies have their stock in the Deposit Trust that is part of the Federal Reserve,... then what happens to those stocks should the Bank of International Settlements decide that the Federal Reserve is insolvent and they should be 'taken over'? This could be the structure for the consolidation of most of the wealth of the planet into the hands of a select class that the conspirists have been screaming about for decades)
 
Bottomline:
I am of the opinion that we have all been the victims of the largest robbery in Human history. Computer technology allowed for the creation of electronic counterfeiting that allowed for the nearly unlimited pillaging of every form of financial instrument used in America and in much of the world. Pensions, Retirement funds, 401Ks, Money Market Funds (Government or Municipal) and the relatively new financial instrument called Derivatives,... and it's all gone. It’s not an “if” thing,… it is an “already happened” thing.
 
Now the Banking system will do its best to “control” the news, and who gets the blame, by leading the investigation of the crime that they were very much involved in and profited from.
 
Things are going to get much worse than I ever feared.
 
There is enough recent news below and some background to help us all understand much more about what happened and what is to come.
 
(Comment on this article by: hemingway811
   Entered on: 2008-07-24 09:29:49
   I just wanted to post a link to deepcapture as it is directly related to counterfeiting securities. This site was founded by Patrick Byrne, CEO of Overstock.com, who has been fighting against counterfeiting and other abuses in our markets. This site contains much researched information you will not find anywhere else.
 
 
 
 
I can't find the new logo right now but I've seen it on the net before. It is a stylized TIA with the "A" in the shape of a pyramid with a hoop through the "A" to look like there is something 'in orbit'
 
================================

Derivatives:
Derivatives are financial instruments whose value changes in response to the changes in underlying variables. The main types of derivatives are futures, forwards, options, and swaps. “derivative value
 
Derivatives are a much larger part of the planet's finances than is understood by the general public (and sure as heck not by the media). The unraveling of the economy is just starting to trigger the collapse of the derivative market. This chart will help make the point.
 
=========================================
 
 
September 17th 2008
Daniel R. Amerman, CFA, InflationIntoWealth.com
 
Overview
While it may look superficially similar to the recent implosions of such investment giants as Fannie Mae, Freddie Mac and Lehman, the takeover and bailout of AIG is quite different, and means that the market is entering the next and even more dangerous phase.  What is driving the fall of AIG – and potential government losses that may far, far exceed the $85 billion bailout announced late on September 16th - is not mortgages or real estate ( directly), but fears that AIG’s huge, global credit-default swap positions will unravel.  The $62 trillion dollar credit derivatives market is 50 times the size of the subprime mortgage derivatives market, and is indeed larger than the entire global economy.
 
Unfortunately, few people understand credit derivatives, or the full risks to the United States and global markets and economies.  In this article, I will take a Credit Derivatives Primer that I published in the spring of 2008 - which anticipated this exa ct type of event - and update it for the current situation.  Through reading this article, you should be able to greatly increase your knowledge of what credit derivatives are, and why they are a far greater danger than subprime mortgages.  We will end with introducing some concepts about how individuals can protect themselves and even profit from these unprecedented market conditions – something you won’t find in recent financial history or conventional investments.
 
===========================================
 
News Link  • Economy
The Greatest Crime in History (Publisher: Audio - This you need to know)
06-13-2008  •  Finacial Sense Newshour 
(Audio) Mr. Bud Burrell of Scottsdale, Arizona, who has worked in high finance for over 35 years, lays bares the truth of how Americans have had their wealth stolen from them. Naked shorts, counterfeit stocks, and other means have cost Americans...  Read Full Story
Reported by: Mike Dugger
 
 
News Link  •  Economy
8,500 Banks may soon die
7-21-2008  •  Daily Kos 
Want to know what happens next? It’s ape ass ugly and it’s going to happen to you, so don’t say I didn’t warn you. Let’s tackle the topic at hand: The Ginormous Banking Enema of 2008 
Make a Comment  •  Send Letter to Editor
Reported by Powell Gammill
 
News Link  •  Economy
DTCC, Markit Form OTC Derivatives Partnership
 07-22-2008  •  www.watersnews.com 
The new company will provide a single gateway for confirming over-the-counter (OTC) derivative transactions globally. This will allow buy-side and sell-side OTC derivative market participants to confirm trades and to gain access to additional service 
Make a Comment  •  Send Letter to Editor
Reported by Ernest Hancock
 
News Link  •  Economy
Eurex Will Offer Central Clearing Service for OTC Derivatives
07-22-2008  •  www.securitiesindustry.com 
 Designed to address industry concerns about systemic risk due to backlogs of transaction confirmations in the credit derivatives arena. (this means that the real value of $100's of Trillions in derivatives will be settled, stay tuned
Make a Comment  •  Send Letter to Editor
Reported by Ernest Hancock
 
News Link  •  Economy
 Markit and DTCC form derivatives trade processing JV
07-22-2008  •  www.efinancialnews.com/ 
Single gateway for confirming OTC derivative transactions globally and the initiative will accelerate the adoption of electronic processing services across the rapidly growing $454 trillion OTC derivative market where around 50% of transactions are s 
Make a Comment  •  Send Letter to Editor
Reported by Ernest Hancock
 
 
News Link  •  More about Federal Reserve
The Federal Reserve is getting Audited by "Bank of International Settlements"
07-23-2008  •  www.consciousmedianetwork.com 
George Green on the Economy (President Bush has agreed to the audit,... after he is out of office - Note: the Federal Reserve is immune from a US Gov't Audit) - The Bank of International Settlements is "THE BANK" that conspiracy advocat  Read Full Story
Make a Comment   •   Email this News Link   •   Send Letter to Editor
Reported by: Ernest Hancock
 

 
The Depository Trust Company (DTC) is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the Securities and Exchange Commission. The depository brings efficiency to the securities industry by retaining custody of some 2 million securities issues, effectively “dematerializing” most of them so that they exist only as electronic files rather than as countless pieces of paper. The depository also provides the services necessary for the maintenance of the securities it has in custody.
 
DTCC's Board of Directors
DTCC's Board is made up of 18 directors. Fourteen are from participants, including international broker/dealers, correspondent and clearing banks, mutual fund companies and investment banks. Two directors are designated by DTCC's preferred shareholders: NASD and the New York Stock Exchange. The remaining two are the chairman and the president and chief executive officer of DTCC itself.
DTCC operates its clearing, settlement, distribution and information-based businesses through several operating subsidiaries. Each serves a specific segment and risk profile within the securities industry.

 
Depository Trust Company (DTC) A central securities certificate depository (also known as "CEDE" by virtue of its nominee name, CEDE & Co.) through which members effect security deliveries among each other via computerized bookkeeping entries, thereby reducing the physical movement of stock certificates. “
 
 
Depository trust company - a central securities certificate depository.
Members of the depository deliver securities between each other via computerized bookkeeping entries.
This reduces the physical movement of all the stock Certificates.”
 
 
Depository Trust Company (DTC): A central securities certificate repository that is a member of the Federal Reserve System and is industry-owned. The New York Stock Exchange is the majority owner. DTC members deliver securities to each other via computerized debit and credit entries. This reduces the need to actually move paper certificates.
 
 
New Automated Interface between the Federal Reserve System and the Depository Trust and Clearing Corporation
 
To: Chief Financial Officer

Subject: New Automated Interface between the Federal Reserve
 
System and the Depository Trust and Clearing Corporation
The Federal Reserve System (“FRS”) and The Depository Trust Company (“DTC”) are pleased to announce that a new automated interface has been established between the organizations that will significantly improve the process of pledging and withdrawing securities to and from various collateral accounts maintained by the FRS and the U.S. Treasury. Effective immediately, DTC-eligible securities pledged to the FRS or the U.S. Treasury will be processed via this automated interface.
The automated interface will allow deposits and withdrawals of DTC-eligible securities to flow directly into the FRS's collateral system. As a result, the process for moving DTC-eligible securities in and out of the FRS's and U.S Treasury's collateral accounts will become much more efficient and the following benefits will be realized:

 
THE DEPOSITORY TRUST COMPANY
Assessment of Compliance with the
CPSS/IOSCO Recommendations for Securities Settlement Systems
 
 
The Federal Reserve System Guide to Discount Window Collateral
 
(See the pattern?)
 
 
____________________________________________
 
News Link  • 
Economy - Economics USA
Could the Banksters Grab Your Bank Deposits?
01-07-2014  •  www.infowars.com 
The above article explains that most of us do not realize that when you deposit money in a bank, that it becomes the property of the bank and we become unsecured creditors of the bank!
 
This article was from April 2013, but will demonstrate that when you put money in the bank, it becomes the bank's money...
 
The recent news about Cyprus banks confiscating depositor’s funds sent chills throughout the financial world here and abroad.  I couldn’t believe that the plan in Cyprus hinged on the idea that the bank could just steal customer’s funds to balance the bank’s books.  I muttered to myself when I read the story that something as crazy as that couldn’t possible happen here in the United States.  Unfortunately, I learned that the plan to pull a Cyprus type grab here was already in the works.
 
“A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds. ” NationofChange 

The above article explains that most of us do not realize that when you deposit money in a bank, that it becomes the property of the bank and we become unsecured creditors of the bank! “Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price?” NationofChange

 
READ THE REST OF THE ARTICLE ON INFOWARS BY CLICKING HERE

 
 
 

 
HOUR TWO
Guests Ernest Hancock

Topics Freeedom's Phoenix Headline News


Hour 2
2014-01-07 Hour 2 Freedom's Phoenix Headline News (Video Archive): 

2014-01-07 Hour 2 Freedom's Phoenix Headline News from Ernest Hancock on Vimeo.


Ernest Hancock
Freedom's Phoenix Headline News
 



Uploaded on Jun 5, 2011

COLLIER COUNTY, Fla. - A bank foreclosure story you've got to see to believe. A Collier County couple turns the tables on Bank of America, the bank that tried to foreclose on their home. Now, the family is foreclosing on the bank! Even bringing trucks and deputies ready to seize property.

The foreclosure nightmare started when Warren and Maureen Nyerges paid cash for a home owned by Bank of American in the Golden Gate Estates. They never had a mortgage whatsoever. But, the bank fouled it up and wound up issuing a foreclosure through their attorney.

The couple took their case to court and after a year and a half nightmare the foreclosure was dropped. A Collier County judge said Bank of America has to pay the couple's $2,534 legal fees for the error. After more than five months the bank still hadn't paid up. So, the homeowners' attorney did just what the bank would do to get their money, legally seize their assets.

"I instructed the deputy to go in and take desks, computers, copiers, filing cabinets, including cash in the drawers," Attorney Todd Allen told WINK News.

Outside the Bank of America on Davis Boulevard, several deputies stood by with movers ready to start hauling out the bank's office supplies and furniture.

Inside, the homeowners' attorney was locked out of the bank manager's office by deputies while the bank manger tried to figure out what to do.

Allen says the manager was visibly shaken, "Having two Sheriff's deputies sitting across your desk, and a lawyer standing behind them, demanding whatever assets are in the bank can be intimidating. But, so is having your home foreclosed on when it wasn't right."

After about an hour the bank finally cut a check to satisfy the debt, and no furniture was taken. A representative for Bank of America issued a statement saying they are sorry for the delay in issuing funds. They claim the original request went to an outside attorney who is no longer in business.

As for Allen, he calls this a symptom of a larger problem he sees often in the courts, where banks don't perform their due diligence on foreclosure cases. "As a foreclosure defense attorney this is sweet justice."

Read more: http://www.winknews.com/Local-Florida...


_________________________________________________
 
 
Ernest Hancock Will Love This: Fed to Backstop $25 Trillion in CDS for Cede & Co.
 
And you thought the $23 trillion in backstops for the financial system was bad, you ain't seen nothing yet. Earlier today, the Depository Trust & Clearing Corporation, best known for its Cede & Co. partnership nominee which is the holder of virtually every single physical stock certificate in the known universe, and accounts for over $2 quadrillion in stock transactions per year, announced that "the Federal Reserve Board had approved its application to establish a DTCC subsidiary that is a member of the Federal Reserve System to operate the Trade Information Warehouse (Warehouse) for over the-counter (OTC) credit derivatives." With this approval the DTCC is now the de facto legally accepted global repository for over-the-counter credit derivative transactions. Simply said, the Federal Reserve is now the guarantor behind all CDS transactions that clear via DTCC, which would be pretty much all of them (sorry CME, you lose). The total bottom line in terms of gross notional? 2.3 million contracts with a gross notional value of $25.5 trillion.
 
When the next AIG implodes, and the CDS market is once again facing annihilation in the face, who will be on the hook? You dear taxpayer, that's who. The new Fed-endorsed organization will settle CDS obligations in all currencies and process credit events. It will also include all OTC credit derivatives traded worldwide, and will be regulated by the Fed and the NY State Banking Department and will be overseen by other US and International regulators. To be sure, the net notional CDS amount, which is what counterparties would be on the hook for in the case of an orderly unwind of the financial system, is materially lower than the gross total. Yet, as systemic unwinds are never orderly, gross tends to become net in those occasions when Lehman bonds go from par to 10 cents in the span of 24 hours. Should systemic risk flare up again (and this time Europe will be both shaken and stirred, thank you Mr. Hazard... Moral Hazard), and fiat-based market values quickly catch up with fair values (which in our ponzi economy can easily be calculated: they are all zero).
 
The actual organization that will soon be in need of a bailout, is the Warehouse Trust (there's that word again) Company, which in turn will operate the DTCC's Trade Information Warehouse, and will begin operations “once certain organizational conditions have been met, which are expected shortly." Presumably, the TIW, which has been in operation for just over one year, is somehow supposed to inspire confidence that the DTCC has an idea of everything that goes on in the quadrillion + CDS Market. "The release of this information has been an important step forward in helping increase transparency in the marketplace. More detailed information on individual firm trading has been made available confidentially to regulators around the world with the consent of market participants." Oh great, at least someone has information to the confidential information.
 
What all this implies is that basis spreads will likely compress very shortly, once counterparty risk becomes a thing of the past and all systemic risk in the biggest derivative market out there (ex IR swaps) is fully backstopped by the Federal Reserve. It will also guarantee the DTCC monopoly status when it comes to CDS trading as nobody will desire to transact and/or clear elsewhere. We shudder to think if the Fed grants DTCC with exclusive status for IR and FX swaps as well, and the associated $600 trillion notional outstanding. And from an insider, we know that the company will be funded and commence operations by March 1.
 
Feature Article  •  Ernie's Favorites Edition
Economy - International
Understanding How Screwed We All Are - "The Greatest Depression" – by Ernest Hancock
Ernest Hancock
   (August 1st 2009 - Originally posted July of 2008 - Some of these things have yet to pass - Listen to the first link to a very informative interview and be afraid... this whole thing has just started)
I'm starting to see the pattern in the tapestry.
 
 
 
HOUR THREE
Guests Patrick Byrne , Patrick Byrne

Topics CEO Overstock.Com , Bitcoin



Hour 3
2014-01-07 Hour 3 Patrick Byrne (Video Archive): 

2014-01-07 Hour 3 Patrick Byrne from Ernest Hancock on Vimeo.

 

Patrick Byrne
 
BIO:

Patrick M. Byrne (born 1962, Fort Wayne, Indiana, United States) is an American entrepreneur, e-commerce pioneer, CEO and Chairman of Overstock.com, In 1999, Byrne took control of the company, then called D2: Discounts Direct, and changed its name to Overstock. He had previously served shorter terms leading two smaller companies, including one owned by Warren Buffett's Berkshire Hathaway.

In 2002, Byrne took Overstock.com public. Since the initial public offering, the company has since increased its revenue to over $1 billion a year, and achieved full profitability in 2009.

Beginning in 2005, Byrne become known for his campaign against the practice of naked short selling. Byrne says it has been used in violation of securities law to hurt the price of his and other companies' stock. Under his direction, Overstock.com has filed two lawsuits alleging improper acts by Wall Street firms, a hedge fund, and an independent research firm.

Patrick Byrne is the son of John J. Byrne, former chairman of Berkshire Hathaway's GEICO insurance subsidiary and White Mountains Insurance Group. He holds a certificate from Beijing Normal University, has a Bachelor of Arts degree in Chinese studies from Dartmouth College, a Master's degree from Cambridge University as a Marshall Scholar, and a Ph.D. in philosophy from Stanford University.

Byrne was a teaching fellow at Stanford University from 1989 to 1991 and was manager of Blackhawk Investment Co. and Elissar, Inc. He served as Chairman, President and CEO of Centricut, LLC, a manufacturer of industrial torches, then held the same three positions at Fechheimer Brothers, Inc., a Berkshire Hathaway company manufacturing police, firefighter, and military uniforms.

Byrne has a black belt in tae kwon do, and once pursued a career in professional boxing. He is a cancer survivor, and has ridden a bicycle across the country to raise awareness and money for cancer research at the Dana Farber Cancer Institute. Byrne has also supported implementing school vouchers and other educational reforms. Byrne was the largest donor to political causes in Utah in the period 2003-2006, while his father was the third-largest.
 
OVERSTOCK.COM

In 1999, Byrne was approached by the founder of D2-Discounts Direct, asking for capital. The company had generated slightly more than $500,000 in revenue the previous year by liquidating excess inventory online. Byrne found the idea of online closeouts intriguing, and invested $7 million for a 60 percent equity stake in the company in the spring of 1999. In September the same year he took over as CEO, and the following month the company was renamed Overstock.com.

Worldstock

During a vacation in Southeast Asia Byrne found that many village artisans were held back by the lack of retail channels, as their production was fragmented and the quantities produced were small. He decided that the Overstock model was perfectly suited for their needs. In 2001 he therefore set up the Worldstock division of Overstock. Worldstock searches through villages all over the world for people capable of producing quality products, by 2006 there were approximately 6,000 producers contributing. On average, about 70 percent of the retail price on all Worldstock items sold goes directly to the artist.

"Dutch Auction" IPO

Byrne initiated a Dutch auction IPO of Overstock.com in 2002. The company was one of the first to go public under a system advanced by WR Hambrecht + Co to retain a greater share of capital within the company rather than going to the investment bank underwriters used in conventional public offerings. Byrne has said that competing banks reacted against this, attempting to obstruct the success of the offering through negative reports and by shorting the company's stock. When Google later in 2004 went public via a Dutch auction IPO, Byrne commented that Wall Street firms similarly pushed negative stories, but did not keep it from going forward successfully. Four years after the OpenIPO, one official of Hambrecht, its now former co-CEO Clay Corbus was added to Overstock's board of directors.

 

Overstock.com CEO Patrick Byrne is often in the news regarding his efforts to curtail injustice. These include his efforts to combat global poverty (through our Worldstock department and products), improve educational outcomes for the less fortunate (through his work with the late Milton Friedman and his support of Milton and Rose Friedman Foundation's school voucher initiative), battle the pernicious effect on America of Wall Street corruption in the form of naked short selling and collusion among hedge funds, prime brokers, and a few research analysts (as are detailed in lawsuits Overstock has filed against Gradient Analytics, Rocker Partners

& Wall Street's major prime brokers), and expose corruption in business journalism via a handful of shill journalists who seek to hijack social media's discourse regarding this scandal so that understanding does not form within the Blogosphere.

This page has been developed as a resource for those interested in poverty and social justice, educational reform, and corruption within Wall Street, financial journalism, and social media. We will add relevant media and articles from time to time. We welcome your comments or suggestions.
 
 
CAMPAIGN AGAINST NAKED SHORT SELLING AND ANALYSTS:


In a conference call with analysts in August 2005, Byrne said that "there's been a plan since we were in our teens to destroy our stock, drive it down to $6--$10 ... and even a plan for how the company would then get whacked up." He said that the conspirators were part of a "Miscreants Ball," headed by a "Sith Lord," who he refused to identify but said "he's one of the master criminals from the 1980s." Byrne said the conspiracy included hedge funds, journalists, investigators, trial lawyers, the SEC, and Eliot Spitzer. Fortune writer Bethany McLean said that Byrne had become a "hero to those who believe that short-sellers are the operators of Wall Street's ultimate black box, predators who destroy companies through innuendo, bullying, political connections--and sometimes through an illegal practice known as 'naked shorting.'" Byrne financed and largely wrote a full-page advertisement in the Washington Post which said "Naked short-selling ... is literally stealing money from the widows, retirees, and other small investors." In a letter to the Wall Street Journal in April 2006, Byrne contended that "blackguards have practiced 'failure to deliver'" of securities, were "destroying businesses and (probably) destabilizing our capital markets." Since 2005, Overstock has filed two lawsuits relating to the matters under Byrne's direction.

In the first lawsuit, filed 2005, Overstock.com filed suit against hedge fund Rocker Partners and the equities research firm, Gradient Analytics (formerly Camelback Research Alliance), saying they illegally colluded in short-selling the company while paying for negative reports to drive down share prices. The defendant (i.e. Gradient Analytics et al.) moved to have the case dismissed, however the California court ruled in August 2006 that the suit should be allowed to proceed. Gradient filed a counter-complaint against Byrne for libel. A portion of this suit was settled out of court on October 13, 2008, when Overstock.com and Gradient dropped the claims against each other after Gradient retracted allegations that Overstock's reporting methods did not comply with rules established by the FASB, stated they believed Overstock.com complied with GAAP standards, and that three directors were independent, and apologized. In December 2009, the suit against Rocker, whose name had since been changed to Copper River Partners, was settled by Copper River paying $5 million, payment of which Byrne stated he received on December 9, 2009.

Overstock.com filed a second lawsuit in 2007 against a number of large investment banks relating directly to alleged illegal naked short selling. Both cases remain in litigation.

Byrne's campaign against naked short selling and others who he feels have targeted him and his company has attracted controversy. In her article on Byrne's 2005 conference call, Bethany McLean said "From a distance he seems like a bully, accusing people who depend on their reputations of corruption. The time is rapidly approaching when he will have to deliver--both the numbers to prove that the business can make money and the facts to prove that the Sith Lord exists." In a column in the New York Times in February 2006, journalist Joseph Nocera described Byrne's actions as a "campaign of menace" and as an attempt to silence Overstock.com's critics. MarketWatch's Herb Greenberg has called Byrne the runner-up for Worst CEO of the Year two years running. One of Byrne's claims, that naked shorting can cause heavy dilution of a company's stock by creating sales untied to any specific shares, has been criticized by Wall Street Journal columnist Holman W. Jenkins. Byrne has cited Overstock.com as an example of a company whose shares have been more than 100% sold short in one quarter, but Jenkins suggests that this merely reflects Overstock.com's heavy trading volume and relatively small public float. Jenkins further argues that brokers are inherently cautious in using the practice, due to the high risk of trading shares that are not guaranteed to be available. Byrne has denied that his campaign is primarily about Overstock.com. However, Byrne has also received favorable coverage, and was featured in a Bloomberg Television show on Naked Short Selling, "Phantom Shares", in March 2007.

In March 2006, John (Jack) Byrne, chairman of Overstock.com and father of Patrick Byrne, said that he was thinking of stepping down in disagreement over the campaign against naked shorting. In April 2006, John Byrne stepped down to become vice-chairman, and in July of that year he resigned from Overstock's board of directors. In August 2008, Jack Byrne said that after "much initial skepticism" he believed his son was "right all along" about the battle and lawsuits with short-sellers and analysts.

Byrne was instrumental in Utah's passage of a law aimed at curbing naked short selling. The legislation was repealed in February 2007, after state representatives were advised that it probably would not withstand judicial scrutiny due to federal preemption. Byrne criticized the repeal, but Senate Majority Leader Curtis Bramble said that legal advisers believed that the state would lose any litigation over the law.

A Securities and Exchange Commission investigation of Gradient was initiated but then dropped in February 2007. In July 2007, two American Stock Exchange options market makers were fined and suspended for using Regulation SHO exemptions to "impermissibly engage in naked short selling" in trades involving options and stocks for their own account. Overstock shares were believed to be among the stocks traded. The market makers settled without admitting or denying the allegations. None of the defendants sued by Overstock were named in the decision, but the Dow Jones News Service said that the decision was likely to be used by Byrne in pursuing his case.

After the crisis in the North American markets in 2008, Byrne received positive press. A Salt Lake Tribune article reported that "These days, when people talk of Byrne, the word 'vindication' comes up a lot."


_______________________________________________
 
 
 
News Link  • 
Bitcoin
Overstock CEO: Why we're accepting bitcoins
01-07-2014  •  CNBC.Com 
Overstock.com has become the first major online shopping retailer to accept the digital currency bitcoin as payment in exchange for any of our million products. We are doing this for both business and philosophical reasons.
 
____________________________________________________________________
 

On December 17, 2013, Patrick M. Byrne, Ph.D., Chairman and CEO of Overstock.com, discussed "Naked Shorts, Bust-Outs, and the Once and Future Cataclysm: Economic Warfare as an Instrument of Transnational Organized Crime."

This version of the video includes Dr. Byrne's PowerPoint presentation.

Patrick Byrne discusses Economic Warfare as an Instrument of Transnational Organized Crime:

About the lecture

Mr. Byrne will describe how the Mafia has infiltrated Wall Street and applied its gangster techniques for profit, but in the process has destabilized our financial system.
 
___________________________________________________
 
Patrick's last interview on the Declare Your Independence with Ernest Hancock radio show (back in April of 2012 - Hour 3): http://www.freedomsphoenix.com/Media/108722-2012-04-02-04-03-12-mark-potok-patrick-byrne-mp3-video-loaded.htm



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Comments in Response

Comment by: Dennis Treybil (#34261)
   Entered on: 2014-01-07 10:31:17

In the last minute or two of his visit at DYI this morning, Patrick mentioned something about a loyalty oath to Obama by some group.

I find this interesting.

In 1688, the English Bill of Rights was penned.  Subjects vowed their loyalty to the person of the King and/or Queen. 

About 100 years later, the Constitution for the USoA was penned.  Its oaths are to the document itself (and any embodied principles), NOT to a person.  All the complaints in the Declaration of Independence are about actions of a King - a person.  Framers apparently saw no need to place hope/loyalty in a person.

Whatever effect an oath may actually have, to whatever allegiance is sworn, I think Byrne must have at least picked up on the fact that an oath to a person sounded odd.  To American ears it should.

DC Treybil

 

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