- This topic has 295 replies, 18 voices, and was last updated 14 years, 9 months ago by
LesBaer45.
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July 9, 2009 at 11:06 PM #428645July 9, 2009 at 11:30 PM #427909
CoronitaParticipant[quote=enron_by_the_sea]Be careful with those dreams of buying the IOUs at discount. SEC decided today that those are securities.
As a result you might need a license and/or maybe exposed to lawsuits from the seller claiming misrepresentation…I think it is ultimately bad for the holders of the IOUs. They will find few people willing to buy them except Goldman/Morgan……
“As securities, the IOUs are subject to the antifraud provisions of the securities laws,” the SEC said in a statement. “As a result, buyers and sellers will have certain rights and remedies for fraud, and the Commission will be able to take action against any person committing fraud in connection with the purchase or sale of an IOU.”
IOU What would constitute fraud? Say an individual decides to act as a dealer, buying IOUs from people who are stuck with them. This individual tells a potential seller, “I have it on good authority that the state won’t repay these IOUs as promised on Oct. 2. You’d be smart to take 85 cents on the dollar right now.”
Assuming the state has said nothing about delaying repayment, the would-be dealer could be charged with misrepresentation under federal securities laws.[/quote]
Yup. Oh well…
Translation of the SEC ruling.
It’s not ok for individuals to rip off IOU holders at discounted prices…
However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
Lol….I’ll start claiming 10 for a CA income tax exemption, thank you very much
July 9, 2009 at 11:30 PM #428136CoronitaParticipant[quote=enron_by_the_sea]Be careful with those dreams of buying the IOUs at discount. SEC decided today that those are securities.
As a result you might need a license and/or maybe exposed to lawsuits from the seller claiming misrepresentation…I think it is ultimately bad for the holders of the IOUs. They will find few people willing to buy them except Goldman/Morgan……
“As securities, the IOUs are subject to the antifraud provisions of the securities laws,” the SEC said in a statement. “As a result, buyers and sellers will have certain rights and remedies for fraud, and the Commission will be able to take action against any person committing fraud in connection with the purchase or sale of an IOU.”
IOU What would constitute fraud? Say an individual decides to act as a dealer, buying IOUs from people who are stuck with them. This individual tells a potential seller, “I have it on good authority that the state won’t repay these IOUs as promised on Oct. 2. You’d be smart to take 85 cents on the dollar right now.”
Assuming the state has said nothing about delaying repayment, the would-be dealer could be charged with misrepresentation under federal securities laws.[/quote]
Yup. Oh well…
Translation of the SEC ruling.
It’s not ok for individuals to rip off IOU holders at discounted prices…
However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
Lol….I’ll start claiming 10 for a CA income tax exemption, thank you very much
July 9, 2009 at 11:30 PM #428426CoronitaParticipant[quote=enron_by_the_sea]Be careful with those dreams of buying the IOUs at discount. SEC decided today that those are securities.
As a result you might need a license and/or maybe exposed to lawsuits from the seller claiming misrepresentation…I think it is ultimately bad for the holders of the IOUs. They will find few people willing to buy them except Goldman/Morgan……
“As securities, the IOUs are subject to the antifraud provisions of the securities laws,” the SEC said in a statement. “As a result, buyers and sellers will have certain rights and remedies for fraud, and the Commission will be able to take action against any person committing fraud in connection with the purchase or sale of an IOU.”
IOU What would constitute fraud? Say an individual decides to act as a dealer, buying IOUs from people who are stuck with them. This individual tells a potential seller, “I have it on good authority that the state won’t repay these IOUs as promised on Oct. 2. You’d be smart to take 85 cents on the dollar right now.”
Assuming the state has said nothing about delaying repayment, the would-be dealer could be charged with misrepresentation under federal securities laws.[/quote]
Yup. Oh well…
Translation of the SEC ruling.
It’s not ok for individuals to rip off IOU holders at discounted prices…
However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
Lol….I’ll start claiming 10 for a CA income tax exemption, thank you very much
July 9, 2009 at 11:30 PM #428498CoronitaParticipant[quote=enron_by_the_sea]Be careful with those dreams of buying the IOUs at discount. SEC decided today that those are securities.
As a result you might need a license and/or maybe exposed to lawsuits from the seller claiming misrepresentation…I think it is ultimately bad for the holders of the IOUs. They will find few people willing to buy them except Goldman/Morgan……
“As securities, the IOUs are subject to the antifraud provisions of the securities laws,” the SEC said in a statement. “As a result, buyers and sellers will have certain rights and remedies for fraud, and the Commission will be able to take action against any person committing fraud in connection with the purchase or sale of an IOU.”
IOU What would constitute fraud? Say an individual decides to act as a dealer, buying IOUs from people who are stuck with them. This individual tells a potential seller, “I have it on good authority that the state won’t repay these IOUs as promised on Oct. 2. You’d be smart to take 85 cents on the dollar right now.”
Assuming the state has said nothing about delaying repayment, the would-be dealer could be charged with misrepresentation under federal securities laws.[/quote]
Yup. Oh well…
Translation of the SEC ruling.
It’s not ok for individuals to rip off IOU holders at discounted prices…
However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
Lol….I’ll start claiming 10 for a CA income tax exemption, thank you very much
July 9, 2009 at 11:30 PM #428659CoronitaParticipant[quote=enron_by_the_sea]Be careful with those dreams of buying the IOUs at discount. SEC decided today that those are securities.
As a result you might need a license and/or maybe exposed to lawsuits from the seller claiming misrepresentation…I think it is ultimately bad for the holders of the IOUs. They will find few people willing to buy them except Goldman/Morgan……
“As securities, the IOUs are subject to the antifraud provisions of the securities laws,” the SEC said in a statement. “As a result, buyers and sellers will have certain rights and remedies for fraud, and the Commission will be able to take action against any person committing fraud in connection with the purchase or sale of an IOU.”
IOU What would constitute fraud? Say an individual decides to act as a dealer, buying IOUs from people who are stuck with them. This individual tells a potential seller, “I have it on good authority that the state won’t repay these IOUs as promised on Oct. 2. You’d be smart to take 85 cents on the dollar right now.”
Assuming the state has said nothing about delaying repayment, the would-be dealer could be charged with misrepresentation under federal securities laws.[/quote]
Yup. Oh well…
Translation of the SEC ruling.
It’s not ok for individuals to rip off IOU holders at discounted prices…
However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
Lol….I’ll start claiming 10 for a CA income tax exemption, thank you very much
July 10, 2009 at 2:05 PM #428208enron_by_the_sea
Participant[quote=flu]
It’s not ok for individuals to rip off IOU holders at discounted prices…However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
[/quote]
LOL. USA is different. Here if you want to rip off someone, you need to get a license to rip off first.
July 10, 2009 at 2:05 PM #428435Participant[quote=flu]
It’s not ok for individuals to rip off IOU holders at discounted prices…However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
[/quote]
LOL. USA is different. Here if you want to rip off someone, you need to get a license to rip off first.
July 10, 2009 at 2:05 PM #428723Participant[quote=flu]
It’s not ok for individuals to rip off IOU holders at discounted prices…However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
[/quote]
LOL. USA is different. Here if you want to rip off someone, you need to get a license to rip off first.
July 10, 2009 at 2:05 PM #428795Participant[quote=flu]
It’s not ok for individuals to rip off IOU holders at discounted prices…However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
[/quote]
LOL. USA is different. Here if you want to rip off someone, you need to get a license to rip off first.
July 10, 2009 at 2:05 PM #428956Participant[quote=flu]
It’s not ok for individuals to rip off IOU holders at discounted prices…However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
[/quote]
LOL. USA is different. Here if you want to rip off someone, you need to get a license to rip off first.
July 10, 2009 at 2:07 PM #428213CoronitaParticipant[quote=enron_by_the_sea][quote=flu]
It’s not ok for individuals to rip off IOU holders at discounted prices…However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
[/quote]
LOL. USA is different. Here if you want to rip off someone, you need to get a license to rip off first.[/quote]
Hmm, in deciding to apply for a license to kill or a license to steal, I think I would pick the latter.
007 License to Steal….Sounds kinda cool.
July 10, 2009 at 2:07 PM #428440CoronitaParticipant[quote=enron_by_the_sea][quote=flu]
It’s not ok for individuals to rip off IOU holders at discounted prices…However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
[/quote]
LOL. USA is different. Here if you want to rip off someone, you need to get a license to rip off first.[/quote]
Hmm, in deciding to apply for a license to kill or a license to steal, I think I would pick the latter.
007 License to Steal….Sounds kinda cool.
July 10, 2009 at 2:07 PM #428728CoronitaParticipant[quote=enron_by_the_sea][quote=flu]
It’s not ok for individuals to rip off IOU holders at discounted prices…However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
[/quote]
LOL. USA is different. Here if you want to rip off someone, you need to get a license to rip off first.[/quote]
Hmm, in deciding to apply for a license to kill or a license to steal, I think I would pick the latter.
007 License to Steal….Sounds kinda cool.
July 10, 2009 at 2:07 PM #428800CoronitaParticipant[quote=enron_by_the_sea][quote=flu]
It’s not ok for individuals to rip off IOU holders at discounted prices…However, it’s ok for banks/institutions/brokers with “licenses” to rip off IOU holders….
[/quote]
LOL. USA is different. Here if you want to rip off someone, you need to get a license to rip off first.[/quote]
Hmm, in deciding to apply for a license to kill or a license to steal, I think I would pick the latter.
007 License to Steal….Sounds kinda cool.
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