Grassley letters to the Goa ..............!

I strongly support all the current concepts, listed in the market reform petition directly below and urge all investors and company owner's. Become acclimated to the contained information. Then demand changes to the current laws.

I will say factually, that some people have questioned and submited comments and complaints (For a year and a half) via all the regulatory agencies and continue to burden the system, with request for immediate action surrounding certain analyst and their specific comments made on the radio broadcasting sector.

Sign the Market Reform Petition now. Click here to view it.

Via www.thesanitycheck.com/BobsSanityCheckBlog/tabid

In two remarkable letters, Senator Grassley shows that not everyone is marching in lockstep to Wall Street's melody. Even though at times it seems that the bad guys own the system and can do whatever they want, every now and then we get a ray of hope, and an indication that there are a few honest men left.

The press has a wonderful way of softening and filtering topics that their masters wish to see massaged, so it's best that one go straight to the source documents if one wishes to know the truth. With that in mind, here are the two letters, absent any editorial.

http://www.senate.gov/~finance/press/Gpress/2005/prg091906a.pdf
http://www.senate.gov/~finance/press/Gpress/2005/prg091906b.pdf

Read them, and you get a sense that Grassley is on to the obfuscation campaign from our regulators, and isn't having any of it.

Now, if we can just get Congress to understand that taking investors' money and not delivering what they paid for is fraud, we could really move the ball down the field.

Sad no wonder One radio analyst is so cocky

I'm not surprised by this bit of news that said, its time for real action from the regulators on many fronts.........These issues mentioned below are shocking and shameful.

They let one wondering why, how come, who where they designed to protect.Surely not the retail investor. Maybe the hedge funds and banking buddies.?


SEC plans tougher enforcement in '07

Bloomberg NewsPublished October 28, 2006

WASHINGTON -- The Securities and Exchange Commission plans to bring more enforcement actions in 2007 after a year in which it prosecuted the fewest cases since the passage of the Sarbanes-Oxley investor-protection law.

The number of cases accusing companies and individuals of violating securities laws fell between 8 percent and 10 percent in the fiscal year ended Sept. 30, the third straight decline, SEC spokesman John Heine said Friday. The SEC pursued 630 enforcement cases in 2005, indicating the number fell to about 575 in 2006.

The SEC faces a wide-ranging Government Accountability Office investigation amid a former investigator's allegations that the agency stymied an insider-trading probe. Two separate U.S. Senate committees have been scrutinizing those claims, which the SEC has denied.

Chairman Christopher Cox championed efforts to limit damages from class-action lawsuits and backed legislation making it harder for investors to sue public companies as a member of Congress before becoming chairman in August 2005.Cox blamed the drop in cases on fewer staff.

Copyright © 2006, Chicago Tribune

Siriusly broadcasting under seige open your eyes

The information below is from the body of a email sent to the FTC yesterday..and is based on my own research.

please feel free to comment, it has also been emailed to many other related people in broadcasting along with many retail investors over the last two months.

Howard stern told the truth when he said a few big companys were behind whats taking place.

Thank you for your past response.However my perception has become even more clear. I request that (blackstone linked http://www.blackstone.com/) be looked at quickly,along with other hedge funds for the relationships they collectively maintain.Along with the control they collectively exercise over the broadcasting sector and media publishing services. as and investor, i feel the system has failed to protect individuals and companies from the massive manipulation that's clearly taking place on a daily basis.I have emailed the information below to some personal friends with in the radio broadcasting area.

how could this happen ?? how does it continue ? what about the damage done to the companies and investors alike ............something's wrong here...........

The radio broadcasting owners, need a wake up call before they lose all to the larger wolfs running among them.The real art of radio must be found and returned to its place on the digital audio distribution platforms.

I think many currently fail to see the truth of what's taking place around them.and have been completely mis-lead for other reasons, Specifically by wall street.

This explains why,I see little hope currently, what I see is massive growing abuse collectively, by some from the street with greater media and broadcasting as a legal partner in some cases..

Im all for sharing honest factual information with investors, while uncovering some off the elements that normally work against the small investors (sheep) with little or no time available for the required due diligence..please note that I think shorting should be allowed but not under the current laws that are prone to massive abuse harming many individual investors, along with some good companies.

I have followed the broadcasting sector from early 2004 prior to investing in the satellite radio sector, I continue to monitor the daily comments from certain analyst and some of the related trade publications within the broadcasting sector, that routinely carry the analyst comments or news items from other prominent industry leaders.They could well be, "unknowingly in some cases" supporting directly. The manipulative efforts of others by blindly reporting their error filled negative comments.based on the direct control the funds and partner's have do to direct ownership.

This industry sector " Greater Broadcasting " (Specifically Radio all forms) is under massive, manipulative siege,The perceived evidence is every where.I also honestly perceive HD Radio as another tool, devised to facilitate a forced shake-out of many of the weaker audio broadcasting companies.By first saturating the major radio markets,that the alliance partners control and operate in.

In some cases, the very trade publications are directly owned by investor groups that also own other broadcasting and content companies within the same sectors they cover....But that information is never disclosed on their news site's or in the body of the news articles they publish or carry from third parties.

Here's another good example
http://www.radioandrecords.com/radiomonitor/news/business/top_news/article_display.jsp?vnu_content_id=1003287740

Clear Channel Rises On Report of LBO In Offing Oct. 24, 2006 By Jeffrey Yorke
I suspect this deal is true and is another step toward forced consolidation by wallstreet hedge funds. that operate outside of the current investment rules ......and will also allow them to purchase all broadcasters/news services as long as its held in the fund defeating the fcc ownership requirements.

these guys are using every tool, they have to depress broadcasting across the board if they manage to get clear channel ,others will become easy targets....This is a very organized collective effort, and must be addressed under the available Rico Statutes.

Good companies being forced to sell at depressed levels.The retail investors hurt on a massive scale, nothing is safe not even the 401k.

A CNBC report on Tuesday (Oct. 24) said the Mays family of San Antonio, which controls the largest voting block of Clear Channel Communications stock, is "warming" to the idea of a leveraged buyout. The family has reportedly had talks with private equity firms about a possible leveraged buyout of the company, which owns and operates 1,200 radio stations. The company has a smaller position in the television arena. The report pushed shares of CCU up more than 1%, or 42 cents, to $32.20. Clear Channel, like all radio stocks, has lagged behind most publicly traded companies, which have experienced sharp gains recently as Wall Street rallies on to record highs. Clear Channel shares jumped to a high of $32.68 in midafternoon trading as more than 6.2 million shares changed hands. CCU shares are up 2.4% for the year but are a long way from the $54 high the stock was trading at five years ago.The Mays family also controls Clear Channel Outdoor, which trades on the New York Stock Exchange under the symbol CCO, and has sold a portion of that company in recent months. Both companies are scheduled to release third-quarter 2006 financial results before the stock market opens on Nov. 6. The companies will also host a teleconference to discuss results at 9 a.m. ET.

Look no further then to blackstone and partners, purchase of Vnu media and Billboard, then the merger with Radio and Records along with a few others recently and yes the sister site Media Week. while reporting the mostly negative news across the board..Here's what the board looks like effective of july 28th 2006.

New Supervisory Board Members Appointed
VNU also announced that, during the meeting, which was held at VNU’s Haarlem headquarters, the following new members were appointed to the company’s Supervisory Board:

Mr. J.A. Quella (representative of The Blackstone Group L.P.);
Mr. J.A. Attwood, Jr. (representative of The Carlyle Group);
Mr. D. F. Akerson (representative of The Carlyle Group);
Lord C. Hollick (representative of Kohlberg Kravis Roberts & Co. L.P.);
Mr. R.J. Bressler (representative of Thomas H. Lee Partners, L.P.),

The new Supervisory Board members replace Messrs. R. Reid of The Blackstone Group, E.P.S. Merrill of The Carlyle Group, M.J. Connelly of The Carlyle Group, S. Brown of KKR and G.R. Taylor of Thomas H. Lee, all of whom were appointed to the Supervisory Board during the company’s Annual General Meeting of Shareholders on June 13, 2006, and resigned their positions at the conclusion of today’s meeting. The other current members of the 12-person Supervisory Board will retain their positions. Each board member has a term that expires at the conclusion of the company’s Annual General Meeting of Shareholders in 2010.

Here's a short list of the publications they control directly.

http://www.vnubusinessmedia.com/index.html
We are a preeminent authority in the business-to-business arena, providing our customers with must-have information through comprehensive, customized and integrated marketing solutions. We deliver this valuable information through 42 market-leading trade magazines, 13 directories, 70+ events and conferences, 65 trade shows and 172 eMedia products.
With operations around the globe, VNU Business Media covers some of the most powerful industries in the world: entertainment, media, marketing, retail, travel, professional performance, real estate and design, food service and beverage, and healthcare. VNU Business Media is the only business communications company able to reach top executives in all of these industries.
VNU Business Publications USA publishes 45 business-to-business titles in the entertainment, media, marketing, retail, travel, performance, real estate and design, and food service and beverage industries. Its portfolio includes market leaders such as Billboard, The Hollywood Reporter, Adweek, National Jeweler, Progressive Grocer, and Successful Meetings.
The VNU Business Media US Masterfile offers 2.8 million postal addresses, 2.1 million phones and 1.2 million email addresses.
·
The diversity of the VNU Business Media Masterfile offers direct marketers unparalleled access to top corporate, middle, training and sales and marketing executives. Now you can influence executives within the retail, media, marketing, advertising, entertainment, travel, design, real estate, training, manufacturing, wholesale, and service industries.
·
Segment this database to target your market by company size, job function, industry, SIC, # of web sites, gender, ethnicity, and geography.
·
Postal or email, VNU Business Media offers the most selectable database of business executives on the market today.
·
The VNU Business Media postal files are managed by John LoGiudice of Edith Roman Associates and the VNU Business Media Email files are managed by Wayne Nagrowski of ePostDirect.
For more information on the postal files, please contact John LoGiudice at 800-223-2194 ext.752 or john.logiudice@edithroman.com
For more information on the email files, please contact Wayne Nagrowski at 800-223-2194 ext.854 or wayne.nagrowski@epostdirect.com

Adweek

Adweek's Best Spots

Adweek’s Marketing y Medios

American Artist

Bulletin d'Information

Back Stage

Back Stage West

Billboard

Brandweek

Business Travel News

Commercial Property News

Contract

Convenience Store News

Couture International Jeweler

Display & Design Ideas

Drawing

Editor & Publisher

EMB (Embroidery/Monogram Business Magazine)

Eurotec

Europa Star Europe

Europa Star China

Europa Star Espana

Europa Star International

Europa Star USA & Canada

Film Journal International

Hospitality Design

Impressions

Incentive

Info Express

Kirkus Reviews

Kitchen + Bath Business

Mediaweek

Meeting News

Multi-Housing News

National Jeweler

PDN (Photo District News)

Potentials

Presentations

Progressive Grocer

Radio and Records

Ross Reports Television & Film

Sales & Marketing Management

Successful Meetings

The Bookseller

The Gourmet Retailer

The Hollywood Reporter

Training

Watercolor

Watson Guptill Publications

The following information should send shivers down the spines of many broadcasting company owner's, the alarm bell is now been sounded.

Here's just one deal from blackstone please note, they own all forms of media and broadcasting along with news services on a global basis.

http://www.blackstone.com/news/press_releases%5C05-18-04.pdf#search=%22blackstone%20broadcasting%20holdings%22

Please note these same groups also exercise direct control of lobbying groups in the form of the (NAB) national assoction of broadcasters, the following link is to the full board.In some specific cases the companys are both directly tied to the nab and hedge funds,With one common collective goal the complete control of the broadcasting sector,by the shear force of the market manipulators.
http://www.nab.org/AM/ASPCode/BoardLists/RadioBoardMembers.asp

Let me try to clarify again with this recent purchase of radio stations.

Cumulus Media, Inc. the second largest radio operator in the United States based on station count will purchase Susquehanna Radio for approximately $1.2 billion
Cumulus Media Partners, LLC, is being formed as a private partnership to include Cumulus Media, Bain Capital, The Blackstone Group and Thomas H. Lee Partners. Cumulus Media Partners will acquire the radio broadcasting business of Susquehanna Pfaltzgraff Co. Cumulus Media, Inc., will provide management services to the partnership.

Some recent history for Cumulus
http://today.reuters.com/stocks/KeyDevelopments.aspx?symbol=CMLS.O

With the press of a single button, from any vantage point within the World, Hosted on their distribution platform,They (blackstone/partners) can inject Selected news information or articles into the broader media and publishing news services. Yes clearly they can move markets in the direction of their collective choice......

This article presented in the form of a question, from www.audiographics.com One very honest, long term industry insider. Whom questioned the real effect of the vnu media purchase in july.
Personally I suspect many other's also expected a wave of much more positive press.

Here's a direct quote form the article.

"Consolidation has left the public with hearing only the information that the group owners want disseminated."

Is it becoming clear yet, "who the owners really are" along with the real goal of gaining control of content and platforms, prior to becoming all digital. When the real money (Profits) will start to flow again.

The good news is, it now looks as if ,enough information has reached the government to force some action.This should ring the warning bell loudly again for the owners, please look at your "industry now" and the direct effects of the media, wall street analyst and their broadcast partners are having based on these "very troublesome relationships".

You need to become vocal,involved openly. we the investors can't stop this alone you must help by being part of the broad based effort.

Any share holder or company owners, in this sector would be well advised to visit the following site. ( www.thesanitycheck.com )The issues are all directly related and work collectively against the companies financial well being, along with all investors. It will clearly describe the methods, which some are collectively using with the media partners. To depress stock prices artificially lower.


I urge you to read the article from mediaweek,Then placed on radio and records site HERE as the headline today. then digest the information a bit while you begin to question, why would they state the weekly listener base as only 230 million .while the NAB just last week claimed its really 260 million.......why lead with more trouble to come, why indicate satellite and internet could save radio, when their actually talking about audio broadcasting in a much wider sense.

Yes the comments could well even be true, That's not my issue...My Issue is Simple, Why, Who Gains From It. What greater good does it serve, None, That i see on the surface of things.Is this even legal.?

I wonder why a investor group that's building a global platform for digital broadcasting, would publish such news via the trades they just purchased, could this be part of something much larger.? are they trying to drive prices further into discount territory.prior to purchasing.

Im left with a very nagging question.how could this get past the regulatory agencies, im very concerned and honestly think that the worst is yet to come to this sector. when wall street controls the industry trades/news service for certain sectors of investments our investment rules or laws must be wrong.

Im urging all broadcasting owners to stop and think ,for a short while, please lock your office door and be honest with yourself. ask what's really going on here...I honestly think the rape,pillage and plunder of a once mighty industry is accelerating and some very powerful groups are controlling the process that's currently at hand...

I have recently withdrew my money from the satellite radio sector at a profit.I plan to remain on the sidelines of the wider broadcasting sector,do to my perception of the current situation.Until something is done to address my concerns.

Lets not lose site of the jacoby issue combine all of your information, questions and complaints into a single document support your question's and or complaints with links such as supplied above.

I will admit to being part of a group of investors that have been supplying information to the sec along with a few other agencies within the government over the last year and a half surrounding the specific issue below.the case numbers are from another source, that i refuse to name.

I hope you can find a way to use and disclose the information contained here.or directed it to another person within your area of expertise that may be willing to shed some light on the contained information, something's are still worth standing up for ...

Please don't be confused by my comments specifically about satellite radio, the issue is much broader and where trying to force open the doors to the world of justice and truth for the industry as a whole.

I urge all contact them directly on the issue of (Bank of AmericaSecurities llc/Jacoby) by telephone or email, and request (ask),that they pursue this issue to the very ends of the current laws.....the referenced subject matter highlighted above is very important to include.

I would also like to thank Forbes openly and directly for their honest efforts, we should commend them for limiting the comments of Mr. Jacoby and his firm. Then ask them to look into the current and historical events surrounding this subject matter. The Senior Editor is a Mr. Dan Bigman. I would suggest they use, Liz Moyer, based entirely on her last article Naked Justice

The original SEC contact at the Los Angeles CA Offices is a Mr. Carl Merkle (Merklec.sec.gov). He can forward additional information to his superiors and the New York Offices.

Contact Info:
Carl Merkle
323-965-3314
MerkleC@SEC.gov

NASD Point of contact/case number
Mr Jacob Ades, the Direct line 212-858-4257
The case # for N.A.S.D. is (removed)
This link takes you directly to the NASD NASD Complaint center

New York Attorney General Complaint form below www.oag.state.ny.us/complaints/
New York State Office of the Attorney General
Eliot Spitzer Bureau of Investor Protection and Securities
120 Broadway New York, New York 10271 (212) 416-8200 (phone) (212) 416-8816 (fax)
Case Number (removed) (Bank of AmericaSecurities llc/Jacoby)

Contacting the Senate Banking committees here , let them know of your support.
for both of these item's, after you review the supplied information

Now is the time to contact Mr Merkle at the Sec.They have people reviewing the submitted information currently. please demand action on the directly related issue of naked shorting ...... add your name to this petition online at the link below
http://www.petitiononline.com/mrktrfrm/petition.html

Sirius broadcasting sector questions

well its good to see the entire hedge fund controlled media services, listed below all collectively working the same issue for their real master. How could this get past the regulators..

investments firms or clubs, hege funds ,what ever you wish to call them. Directly own the media and trade publications that continually spread mostly negative news information for the greater broadcasting sector..

does this sound correct to you station owners or investors. This group can use the media/trades they own collectively to move the very sector simply by releasing selected news articles....

they could even position or trade ahead of any news they chose.....I for one surely smell fish here.

where were the regulators how could this slip by.........? what would the Ftc say about this?


Sale Talk Drives Clear Channel To 9.7% Gain Oct. 27, 2006

By Paul Bond, The Hollywood ReporterSOURCE: TheHollywoodReporter.com

Clear Channel Communications Inc., the nation's No. 1 radio company, saw its stock jump 9.7% on Thursday (Oct. 26) -- a day after it acknowledged that it might be for sale, though the announcement encouraged its bond rating to be cut to near junk status.Shares of Clear Channel rose $3.13 to $35.48, giving the company a market capitalization of about $17.6 billion.

Standard & Poor's and Fitch Ratings cut Clear Channel's debt to "BBB-minus," their lowest investment-grade ranking."While there are numerous possible outcomes from this announcement, Fitch believes that on balance there is a higher likelihood of a negative outcome for bondholders," Fitch said."Because of the potential size of the buyout, Standard & Poor's expects the equity contribution to be small, resulting in significant levels of additional debt," S&P said.

Reports began surfacing this week that private-equity groups Kohlberg Kravis Roberts and Co., Blackstone Group and Providence Equity Partners might, as a group, make an offer for Clear Channel. Thomas H. Lee Partners might also be forming a bidding group, according to published reports. All of these firms except for Providence are investors in VNU Group, parent company of Radio & Records.

In response to all the buyout chatter, Clear Channel said late Wednesday (Oct. 25) that it has hired Goldman Sachs & Co. for assistance in "evaluating various strategic alternatives to enhance shareholder value.”Observers had been speculating on and off that Clear Channel might attract a buyer, as its share price has been on a slow, four-year slide from $50.

Some analysts were cautious Thursday, advising clients not to chase the stock higher as Clear Channel, faced with mounting competition from satellite radio and in-car iPods, might not fetch much of a premium.Stifel Nicolaus & Co. analyst Kit Spring, however, raised his price target on Clear Channel shares $2 to $38.

world digital media group site update (citysessionstv)

SANDRA CARTER GLOBAL
ACQUIRES WORLD-WIDE DISTRIBUTION RIGHTS FOR CITY SESSIONS.

Sandra Carter Global, Inc. has been a major force in the production and distribution arenas for over 25 years. The company has produced over fifteen first-run series, including the Emmy-nominated 24 Days of Christmas, and New York and Chicago Film Festival Gold Medal Winners, Women of the World and Mandela, Man of Vision. Under the direction of Sandra Carter, who burst onto the international production and distribution scene in the 1980’s with her pioneering show, Women of the World, the company has consistently grown every year. With clients in over 60 countries and programs in over 20 languages, Sandra Carter Global, Inc. is a dynamic force in international TV syndication. In addition to award-winning documentary features, Sandra Carter Global, Inc. distributes new and exciting sports content as well as animation, educational, fitness, religious, music, entertainment, children’s and travel programming. Some of the programs currently in distribution are: Billboard Magazine, The Hollywood Reporter, Jamaican Explosion, Masterpieces of the Hermitage, Golden Games, and Shop the World, starring David Emanuel, currently in production of its fourth season. Sandra Carter Global, Inc. continues to expand its international sales to all forms of media including Television, Home Video/DVD, Satellite and new media.

City Sessions visit home page In every major city there is a vibrant music scene that can be examined by looking at the bands and musicians that have a huge local following. Yet, relatively few people outside of these cities know their music. City Sessions celebrates the music that defines these cities by uncovering these incredibly talented performers and gives them a global stage. And in each case, it's all about the music. [more]

DIGITAL FREEDOM CAMPAIGN (FAIR USE)

http://www.digitalfreedom.org/

The battle for your digital rights starts here..!!!!

Digital Freedom Campaign begins

10/26/2006

Digital Freedom Campaign beginsBy Jonathan Swigart
THE WASHINGTON TIMESOctober 26, 2006

Technology companies took aim at the film and recording industries yesterday for their efforts to restrict how consumers use movie and music downloads.

The Digital Freedom Campaign plans to teach lawmakers, policy-makers and consumers the value of new digital technologies. "The Digital Freedom Campaign is a way for all of us who are trying to preserve [consumer] rights and protect innovation and come together under one umbrella to make our voices heard loudly and clear," said Gigi Sohn, president of Public Knowledge, a Washington advocacy group focused on consumers' digital rights. "We're tired of saying no, we want to say yes to consumer rights, innovation, creativity and competition."

The campaign includes a Web site (www.digitalfreedom.org), which its advocates plan to use to gain support from consumers.

The campaign by the Consumer Electronics Association, Computer and Communications Industry Association, Public Knowledge and the Media Access Project, a nonprofit telecommunications law firm, says consumers should be allowed to enjoy music and video whenever and however they want, and that such freedom should be "protected and nurtured."
The campaign plans to focus on educating the public about what rights as consumers they should and do have, something that Mr. Shapiro said more people should know. "Go to [a] DVD and read the warning. 'Any unauthorized use is illegal.' That's not true. That means fair use doesn't exist."

According to U.S. copyright law, "fair use" means that copyrighted materials may be used without permission provided that it is used reasonably, without impairing the value of the piece and without affecting any profits that might be going to the copyright owner.

The recording industry, which has been trying to crack down on consumers downloading and distributing music without paying for it, criticized the campaign, saying it does not take into account the copyrights of recording artists, their labels and production studios. "To suggest that unauthorized downloading is neither 'illegal' nor 'immoral' -- as you have -- is not a mainstream position," said a letter released by the Recording Industry Association of America (RIAA) and other music industry groups.

The U.S. Supreme Court in 2005 ruled that popular peer-to-peer sharing sites like Kazaa were liable for copyright infringement by their users.

Earlier this year, Kazaa settled a $100 million lawsuit with the recording industry for its illegal conduct.Currently, consumers may purchase music for personal use, but cannot lawfully redistribute the works they have bought.

"To go so far as to recently label our efforts to protect our rights as 'terrorism' is offensive and worthy of an apology," the RIAA letter said.

Sirius questions should surface

Please ......Stop and think about the information below...And how it could relate directly to you as a broadcaster, consumer or investor alike....



SEC Will Be Investigated in Probe Sought by Senate's Grassley
By Otis Bilodeau

Oct. 26 (Bloomberg) -- The U.S. Securities and Exchange Commission, already under scrutiny for its handling of a trading probe that entangled Morgan Stanley Chief Executive Officer John Mack, now faces a broad review by government auditors of its management and methods for policing the financial markets.

The Government Accountability Office agreed last week to investigate the SEC's enforcement division and compliance department after requests by Senator Charles Grassley, an Iowa Republican who questioned whether the agency gave Mack special treatment. Grassley asked the GAO to examine the SEC's ``planning, oversight, control and other management processes'' and gauge whether the agency does enough to oversee regulators at the New York Stock Exchange and NASD.

``Based upon allegations I have received over the past few months, I have become increasingly concerned regarding the operations of the SEC, and whether the SEC is faithfully adhering to its mission'' to protect investors, Grassley, the chairman of the Senate Finance Committee, wrote in one of two Sept. 19 letters to GAO Comptroller General David Walker.

The review ratchets up the heaviest political pressure the SEC has faced since Christopher Cox, a California Republican, took over as its chairman in August 2005. Grassley's requests target units run by SEC enforcement chief Linda Thomsen and Lori Richards, head of the Office of Compliance, Inspections and Examinations.

Senators including Grassley are concerned that the SEC shielded Mack from a probe of insider trading at Pequot Capital Management Inc., which runs $7 billion in hedge funds. Gary Aguirre, a former SEC investigator, told the Senate Judiciary Committee in June that he was blocked from questioning Mack because of the Morgan Stanley CEO's political clout. New York- based Morgan Stanley is one of Wall Street's two biggest securities firms.

`Coating of Dirt'

The SEC eventually interviewed Mack in July and notified him and Westport, Connecticut-based Pequot earlier this month that it won't pursue a case against them. The SEC repeatedly has denied Aguirre's claims and Mack and Pequot denied any wrongdoing.

``This Aguirre story will leave a coating of dirt unless it is probed and washed away,'' said Edward Fleischman, a former SEC commissioner now in private practice at Linklaters in New York. ``It will benefit us all, and it will ultimately benefit the SEC, to have the GAO go through all of this as an outside observer.''

Thomsen declined to comment. Walter Ricciardi, a deputy enforcement director at the SEC, said the agency has no objection to the GAO inquiry.

``We welcome the review and look forward to any recommendations that might follow,'' Ricciardi said in an interview.

Donaldson Appointee
Thomsen is the only division director at the SEC not appointed by Cox. She was promoted in May 2005 by Cox's predecessor, William Donaldson, after then-Enforcement Director Stephen Cutler returned to private practice.

Cox said Oct. 18 that members of Congress have ``legitimate concerns and I share those concerns'' when asked about Aguirre's allegations.Grassley asked the GAO, Congress's investigative arm, to report its findings by June. The GAO said in an Oct. 16 letter to Grassley that it ``accepts these requests as work that is within the scope of its authority.''

The inner workings of the SEC's enforcement division are rarely exposed to public view. As a matter of policy, the agency doesn't say when it opens or closes investigations and officials won't discuss their progress in building a case.

NYSE, NASD Oversight

Grassley asked the GAO to assess how the SEC tracks investigations, the amount of time the agency takes to complete them and its ``reported success rate.'' He also requested that the auditors determine how many referrals of potentially illegal trading activity from U.S. exchanges ``actually become part of a regulatory action.''SEC enforcers rely on the self-regulatory organizations, or SROs, that police the exchanges, including NYSE Regulation and the NASD, to report signs of suspicious trading for further investigation.

The SEC must ``detect and deter potential abuses of SRO authority arising from inherent conflicts of interest,'' Grassley wrote to the GAO. ``How does the SEC ensure that the SROs vigorously oversee their own members?''

An analysis of stock-trading data by Toronto-based Measuredmarkets Inc. showed in August there may have been insider trading in advance of 41 percent of the largest U.S. takeover announcements in the preceding year. Derivatives traders also made perfectly timed bets before public announcements of recent deals such as the $33 billion leveraged buyout of hospital operator HCA Inc.

Hedge Funds
About 20 percent of the new investigations opened at the SEC in the past year focused on insider trading and slightly less than half of those probes led to enforcement cases, according to Ricciardi.

``We often see suspicious trading, but in some cases it's hard to find the evidence,'' he said in an Aug. 27 interview.

Cox said Oct. 18 that the SEC is ramping up its scrutiny of potential insider trading by hedge funds ahead of company mergers. Thomsen, the enforcement chief, told Congress last month that cases of insider trading by hedge funds have become a ``significant concern.'' Hedge funds are private pools of capital that allow managers to participate substantially in the gains they make for investors.

To contact the reporter on this story: Otis Bilodeau in Washington at obilodeau@bloomberg.net . Last Updated: October 26, 2006 09:30 EDT

SIRIUS trouble for the broadcasting sector

Here's my take on this subject and sector currently ,you can read the whole story on the link below. Its based on my research and perceptions of the broadcasting sector. Which has lead to many of my comments, questions and complaints being forwarded to many of the listed sites in the article open your eyes folks ....Were being manipulated by the street ,media trades, some broadcasters and the trading system collectively...!!!


time to speak out.........

SIRIUS ALTERNATIVE: "The radio broadcasting owners, need a wake up call before they lose all to the larger wolfs running among them.The real art of radio must be found and returned to its place on the digital audio distribution platforms.

I think many currently fail to see the truth of what's taking place around them.and have been completely mis-lead for other reasons, Specifically by wall street.

This explains why,I see little hope currently, what I see is massive growing abuse collectively, by some from the street with greater media and broadcasting as a legal partner in some cases..

Im all for sharing honest factual information with investors, while uncovering some off the elements that normally work against the small investors (sheep) with little or no time available for the required due diligence..Please note that I think shorting should be allowed but not under the current laws that are prone to massive abuse harming many individual investors, along with some good companies.

I have followed the broadcasting sector from early 2004 prior to investing in the satellite radio sector, I continue to monitor the daily comments from certain analyst and some of the related trade publications within the broadcasting sector, that routinely carry the analyst comments or news items from other prominent industry leaders could well be, 'unknowingly in some cases' supporting directly. The manipulative efforts of others by blindly reporting their error filled negative comments.
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