Ming the Mechanic: The unknown 20 trillion dollar company 31 Oct 2003 @ 14:33 by waalstraat : The way I see it
The NewsLog of Flemming Funch The unknown 20 trillion dollar company 2003-10-30 17:37
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by Flemming Funch
There is a busy little private company you probably never have heard about, but which you should. Its name is the Depository Trust & Clearing Corporation.
See their website.
Looks pretty boring.
Some kind of financial service thing, with a positive slogan and out there to make a little business.
You can even get a job there.
Now, go and take a look at their annual report.
Starts with a nice litte Flash presentation and has a nice message from the CEO.
And take a look at the numbers. It turns out that this company holds 23 trillion dollars in assets, and had 917 trillion dollars worth of transactions in 2002.
That's trillions, as in thousands of thousands of millions. 23,000,000,000,000 dollars in assets.
As it so turns out, it is not because DTCC has a nice website and says good things about saving their customers money that they are trusted with that kind of resources. Rather it is because they seem to have a monopoly on what they do. In brief, they process the vast majority of all stock transactions in the United States as well as for many other countries. And - and that's the real interesting part - 99% of all stocks in the U.S. appear to be legally owned by them.
In the old days, when you owned stocks you would have the stock certificates lying in your safe. And if you needed to trade them, you needed to get them shipped off to a broker. Nowadays that would be considered very cumbersome, and it would be impractical to invest via computer or over the phone. So the shortcut was invented that the broker would hold your stocks instead of you. And in order for him to legally be able to trade them for you, the stocks were placed under their "street name". I.e. they're in the name of the brokerage, but they're just holding them in trust and trading them for you. And you're in reality the beneficiary rather than the owner. Which is all fine and dandy if everything goes right. Now, it appears the rules were then changed so the brokers are not allowed any longer to put the stocks in their own name. Instead, what they typically do is to put the stocks into the name of "Cede and Company" or "Cede & Co" or some such variation. And the broker might tell you that it is just a fictitious name, and will explain why it is really more practical to do that than to put it in your name.
The problem with that is that it appears that Cede isn't just some dummy name, but an actual corporation that DTCC controls. And, well, if you ask anybody about this, who actually knows about it, they will naturally tell you that it is all a formality. To serve you better, of course. And, well, maybe it is. DTCC seems like a nice and friendly company. It is a private company, owned by the same people (major U.S. banks) who own the Federal Reserve Bank. And if they all stick to their job, and just keep the money and your stocks flowing smoothly, I'm sure that is all well and good. But if somebody at some point should decide otherwise, and there's a national U.S. emergency and/or the U.S. government becomes unable to pay its debts, well, they might just not give you your stocks back. Because legally they own them. Something to think about.
An fascinating article about this whole thing is here. I will include it at the bottom too, in case it should disappear. Not that I can vouch for or agree with everything the guy is saying, and some of it is a little whacko, but obviously he's been researching this quite a bit. You'll find very little about it on the net otherwise.
The Unknown $19 Trillion Depository Trust Company
by Anthony Wayne
Part I of II
This exclusive report is a compilation of interviews and background research from October 1995 through April 1999.
The Depository Trust Company (DTC) is the best kept secret in America. Headquartered at 55 Water Street in New York City, the average American has no clue that this financial institution is the most powerful banking corporation in the world. The general public has no knowledge of what the DTC is or what they do. How can a private banking trust company hold assets of over $19 trillion and be unknown? In a recent press release dated April 19, 1999, the Depository Trust Company stated:
The Depository Trust Company (DTC) is the world's largest securities depository, holding nearly $19 trillion in assets for its Participants and their customers.... Last year, DTC processed over 164 million book-entry deliveries valued at more than $77 trillion.
In dealing with the trust department of Midlantic Bank, N.A. in New Jersey [now PNC Bank, N.A.], this writer was authorized, as trustee and power of attorney, to transfer original trust assets comprising of common stocks and bonds to a new trust set up in another jurisdiction. An Assistant Vice President from the Trust & Financial Management Office of Midlantic Bank said to me "it will take at least 6 weeks to do this as the majority of the stocks and bonds are not held in the name of the trust". This same Midlantic Bank Assistant V.P. also stated in a letter dated November 17, 1995, "Of the 11 municipal bonds, 8 are held in book entry only. This means they cannot be physically re-registered with a certificate sent to the new trustees." (* these are not the actual figures quoted in the letter in order to protect the privacy of the account holder, at their request. Also, we were asked not to name the Midlantic Assistant V.P. in order to protect her privacy Rights. We respect these requests with full moral compliance). In disbelief, I brought this matter to the attention of our research assistants at the Christian Common Law Institute [formerly the North Bridge News] and we began our lengthy investigation into the matter. After 3 years, the can of worms we've opened up should frighten every American. With the advent of reported Y2K computer glitches and the possible collapse of our 'paper asset' economy, every person who has a stock or bond in their portfolio had better read this report and act on the information we are disclosing here.
In November 1995, after encountering numerous "no comments" and a myriad of "that's not my department" excuses via telephone, I eventually spoke with Mr. Jim McNeff who told me his position was Director of Training for the DTC. He said he'd been employed there for 19 years and was "very proud" of his employer. During my initial telephone interview, either Jim's employer or some other unknown person or persons were illegally listening or taping our telephone conversation according to the electronic eavesdropping equipment we have installed on our end. Why did anyone feel it was necessary to illegally record our conversation without advising us? Was some federal alphabet agency monitoring DTC calls to safeguard National Security? That in itself is suspicious enough to warrant a big red warning flag.
Jim informed me back then (1995) that "the DTC is the largest limited trust company in the world with assets of $ 9.1 trillion". In July 1998, I spoke with Ms. Rose Barnabic of the DTC Finance Department who said that "DTC assets are currently estimated at around $11 trillion". As of April 19, 1999, the DTC itself has stated that their assets total "nearly $19 trillion" (see above). Mr. McNeff had also stated "the DTC is a brokerage clearing firm and transfer center. We're a private bank for securities. We handle the book entry transactions for all banks and brokers. Every bank and brokerage firm must secure their membership with us in case they become insolvent, so your assets are secure with DTC". Yes, you read that correctly. The DTC is a private bank that processes every stock and bond (paper securities) for all U.S. banks and brokerage houses. The big question is this; Just who gave this private bank and trust company such a broad range of financial power and clout?
The reason the public doesn't know about DTC is that they're a privately owned depository bank for institutional and brokerage firms only. They process all of their book entry settlement transactions. Jim McNeff said "There's no need for the public to know about us... it's required by the Federal Reserve that DTC handle all transactions". The Federal Reserve Corporation, a/k/a The Federal Reserve System, is also a private company and is not an agency or department of our federal government, according to the 1998 Federal Registry. The Federal Reserve Board of Governors is listed, but they are not the owners. The Federal Reserve Board, headed by Mr. Alan Greenspan, is nothing more than a liaison advisory panel between the owners and the Federal Government. The FED, as they are more commonly called, mandates that the DTC process every securities transaction in the US. It's no wonder that the DTC (including the Participants Trust Company, now the Mortgage-Backed Securities Division of the DTC) is owned by the same stockholders as the Federal Reserve System. In other words, the Depository Trust Company is really just a 'front' or a division of the Federal Reserve System.
"DTC is 35.1% owned by the New York Stock Exchange on behalf of the Exchange's members. It is operated by a separate management and has an independent board of directors. It is a limited purpose trust company and is a unit of the Federal Reserve." -New York Stock Exchange, Inc.
Now, let's see how this effects the average working American family. If you're not aware how the system works, you should visit or call a stock broker or bank and instruct them you want to purchase some shares of common stock or a small municipal bond, for example. They will set up a brokerage account for you and act as your agent with full durable power of attorney (which you must legally sign over to them) to conduct business on your behalf, upon your buy or sell instructions. The broker will place your stock or bond purchase into their safekeeping under a "street name". According to Mr. McNeff of the DTC, no bank or broker can place any stock or bond into their firm's own name due to Federal Trade Commission (FTC) and Security and Exchange Commission (SEC) regulations.
The broker or bank must then send the transaction to the DTC for ledger posting or book entry settlement under mandate by the Federal Reserve System. Remember, since your bank or broker can't use their name on the certificate, they use a fictitious street name. "Since the DTC is a banking trust company, we can't hold the certificates in our name, so the DTC transfers the certificates to our own private holding company or nominee name." states Mr. McNeff. The DTC's private holding company or street name, as shown on certificates we have personally examined from numerous certificate holders, is shown as either "CEDE and Company", "Cede Company" or "Cede & Co". We have searched every source known to learn who CEDE really is, but have been unable to get any background information on them. Is Cede Company fictitious or is their identity perhaps a larger secret than DTC? We must presume that the information Mr. McNeff gave us was correct when he confirmed that Cede Company was a controlled private holding company of the DTC. We have now found the following proof that CEDE is real from the Bear Stearns internet site:
NEW YORK, New York - March 16, 1999 - Bear Stearns Finance LLC today announced that it will redeem all of the 6,000,000 outstanding 8.00% Exchangeable Preferred Income Cumulative Shares, Series A ("EPICS") of Bear Stearns Finance LLC, liquidation preference of $25.00 per Series A Share, CUSIP number G09198105. All of the Series A Shares are held by Cede & Co., as nominee of The Depository Trust Company, and the payment of the redemption price will be made to Cede & Co. by ChaseMellon Shareholder Services, LLC, as paying agent, whose address is: 85 Challenger Road, Ridgefield Park, New Jersey 07660.
The banks and brokers are merely custodians for their clients. By federal law (SEC), they cannot hold any assets in the customer's name. The assets must be held in the name of DTC's holding company, CEDE & Co. That's how DTC has more than $19 trillion dollars of assets in trust... or is it really in "trust" if the private Federal Reserve System is technically holding it in their "unknown" entity's name? Obviously, if stock and bond certificates you've purchased aren't in your name, then the "holder" (the Federal Reserve System) could theoretically refuse to surrender them back to you under a "national emergency" according to the Trading with the Enemy Act (as amended). Is this the collateral being held by the private Federal Reserve System to pay off the national debt owed to them by our federal government, first initiated by Lincoln's debt bonds of 1864?
According to Mr. McNeff, the DTC was a former member of the New York Stock Exchange (NYSE), and "Our sister company is the National Securities Clearing Corporation... the NSCC" (they have since merged). He was correct since we now know that the NYSE holds 35.1% of the "ownership" of the DTC on behalf of their NYSE members. Simply put, the Depository Trust Company absolutely controls every paper asset transaction in the United States as well as the majority of overseas transactions, and they now physically hold (as of April 1999) 99% of all stock and bond book-entrys in their street name, not the actual owner's names. If you have stock or bond certificates in your name buried in your back yard or under your mattress, we suggest you keep them there. If not, it might be very wise to cancel your brokerage account and power of attorney status, re-register the stocks and bonds in your name (if you still can), and keep them hidden where only you know their location. Otherwise, you have absolutely no control over them (see Part II of our exclusive research report on the DTC for more information on beneficial ownership status). However, getting a stock or bond certificate these days is not so easy if possible at all:
"For the most part, issuers know little about the role of the Depository Trust Company (DTC). The DTC was created in 1973 as a user-owned cooperative for post-trade settlement. Our members are banks and broker/dealers, whom we refer to as participants. We handle listed and unlisted equities, including 51,000 equity issues and 170,000 corporate debt issues, equating to more than 78% of shares outstanding on the New York Stock Exchange (NYSE). We also have more than 95% of all municipals on deposit.
In the 1980s, the "Group of 30" [business leaders] recommended that stock certificates be eliminated, because physical certificates create risk. The Securities Exchange Commission (SEC) issued a concept release in 1994 to gradually decrease certificates, providing optional direct registration on the books of the issuer instead of a certificate.... this enhances the portability of shares between transfer agents and brokerage accounts. With the direct registration system, brokers transmit instructions to purchase through DTC, which the issuer or transfer agent then registers, so shares can be delivered electronically." -John D. Faith, Manager, Corporate Trust Services, The Depository Trust Company (1996)
Now we're about to reveal to you the most shocking discovery we came across during our research into this matter. Most of us remember a few years back the purported computerized selling of stocks that resulted in Wall Street's "Black Monday":
Dow Dives 508.32 Points in Panic on Wall Street
"The largest stock-market drop in Wall Street history occurred on "Black Monday" -- October 19, 1987 -- when the Dow Jones Industrial Average plunged 508.32 points, losing 22.6% of its total value. That fall far surpassed the one-day loss of 12.9% that began the great stock market crash of 1929 and foreshadowed the Great Depression. The Dow's 1987 fall also triggered panic selling and similar drops in stock markets worldwide" -Source: Facts on File World News CD ROM
The stock exchanges had dramatic record losses, and a record volume of shares were traded on that infamous Monday in October 1987. We all asked ourselves how computers could have done this by themselves without someone knowing about it. After all, someone has to program a computer to tell it what to do, what not to do, or even when to do or not do it.
During my telephone conversation, Mr. McNeff was trying to assure me that they [the DTC] have "never lost a certificate or made a mistake in a book ledger transaction". In attempting to give me an example of how trustworthy the DTC is when I asked him how he could back up such a statement, he replied "DTC's first controlled test was 4 or 5 years ago. Do you remember Black Monday? There were 535 million transactions on Monday, and 400 million transactions on Tuesday". He was very proud to inform me that "DTC cleared every transaction without a single glitch!". Read these quotes again: He stated that Black Monday was a controlled test. Black Monday was a deliberately manipulated disaster for many Americans at the whim of a controlled test by the DTC.
What was the purpose of this test? Common sense tells you that you test something before you intend to use it. It's quite obvious that the stock markets are going to 'crash and burn' at some future date and for some 'unknown' reason since the controlled test was so successful. Was this just one of the planned tests for a Y2K internationally planned worldwide economic meltdown? The Great Depression is about to be repeated, and it will be as deliberate and manipulated as the first one that began with the stock market crash of 1929. We are, without a doubt, on the brink of the Mother of all economic Depressions. As of May 3, 1999, the Dow Jones Industrial Average (DJIA) went above a record 11,000 points. Just prior to the 1929 stock market crash, Wall Street was posting record prices, record earnings, and record profits.... just like the scenario we are experiencing today. Will Y2K be a manipulated and deliberate a financial meltdown? Too many facts already support this probability.
On June 7, 1995, the federal government issued a new regulation requiring stock and bond certificate transfers to be cleared in three days instead of the previous five day time period. It coincided with the infamous Regulation CC that purportedly gave us faster three day availability of funds from deposited checks. This means that brokers and banks must get your stock or bond transaction into the street name (Cede & Co.) of the DTC within 3 working days. That's hard to do considering banks claim it takes 3 or more days to clear a check that you've submitted to pay for a stock purchase. But, there's a reason for this new regulation and it coincides with the introduction of the new FRS "dollars".
On February 22, 1996, "the DTC will flip the switch" according to Mr. McNeff. "What switch?", I asked. "This is the day that clearing house funds will no longer be accepted for stock or bond transactions" was my reply from Jim. "Instead, only Fed Funds will be accepted". Fed Funds, or a Fedwire, are electronic computer ledger debit transfers between Federal Reserve System member banks. No checks or drafts have been allowed from that day, just as Mr. McNeff accurately stated. This is more commonly called a 'cashless transaction'. I call it the reality of the mark of the beast. This is the manifestation of the new international god, the New World Order [I prefer the term 'New World DISorder' as a more accurate description].
Consider this my fellow Christian Americans: All pension funds and other institutional 'managed funds' are comprised of paper asset investments such as stocks, bonds, and mutual funds. These certificates are technically in the name of DTC's private holding company, CEDE and Company. The DTC is owned by the private Federal Reserve System owners (Click for a complete list of names). Congress has attempted, on no less than two occasions since 1995, to pass legislation allowing pension funds to be used by the government as purported 'loans'. All the Federal Reserve System has to do is hand it over. But, what happens to the people counting on those pension fund investments in order to feed themselves in their retirement? Too bad for them.... they're out of luck because for the 'good of the nation', they may be forced to share or relinquish their lifetime of hard-earned wealth. This can be done without the consent of Congress under an Executive Order based on the War and Emergency Powers Act and a state of National Emergency, just like we are already under (See further Executive Orders). Since the Federal Reserve System already holds our stocks and bonds in their fictitious DTC "street name", CEDE, then perhaps they'll cash them in for the federal government's failure to repay the loans that have become way overdue. Heck, some of Lincoln's gold backed bonds from 1864 have not been repaid yet.... and for a reason.
On March 6, 1933, all bullion gold and gold coins were forcibly taken from the hands of private citizens (see New York Times). Under the War Powers Act, President Roosevelt declared a national emergency touted as a "Banking Holiday". It was declared due to the deliberately calculated stock market crash that preceded the Great Depression. Where did this gold end up? Into the hands of the Federal Reserve System owners. The majority is stored in the impervious rock vaults they own beneath New York City. Is it any surprise that the DTC physically holds all the remaining non-book entry issued stock and bond certificates in the same place?
Technically, our entire nation is still under the Executive Order declaration of the War Powers Act and in a continual state of national emergency (See Clinton's 1994 Executive Order 12919). The President can enforce any new emergency at any time under Executive Order or Presidential Directive. In 1995, we [the former North Bridge News] published that we expected a new national "dollar" emergency to be declared within a year or two. Just like we thought at the time, they have now blamed it on the purported drug dealers who are allegedly destroying our currency by money laundering schemes.
Since late 1996, old U.S. $100 FRB notes issued by the Federal Reserve Bank are being exchanged for new $100 FRS issued by the Federal Reserve System. These new notes have scanable magnetic platinum encryption on the plastic strips embedded inside the bills. The U.S. Treasury claims this is for "the blind". Now, new $20 and $50 FRS's are replacing the older notes as well. What people don't realize is that very soon, the older FRB notes will no longer be 'legal' and there will be a penalty for hoarding them. This is what happened to those Americans holding gold and gold coins after 1933.
"We are most gratified with the successful introduction of the new $100 and $50 notes and look forward to the same success with the new $20s," Chairman Greenspan said. For the first time, a machine-readable capability has been incorporated for the blind. A new feature in the $20 will facilitate the development of convenient scanning devices that could identify the note as a $20. -U.S. Treasury, Office of Public Affairs, RR-2449 released May 20, 1998.
Why new paper 'money' and for what purpose? Because the new FRS notes in your pocket can be scanned and whoever scans them can know exactly how much money you have on you. The older FRB notes are not encoded to do this. This writer knows firsthand of at least one machine, manufactured by Diebold, Inc. (a/k/a InterBold) that scans the money in your pockets, wallet or purse no different in theory than a credit card scanner, but much more sophisticated. I participated in a 'test' of this machine at a U.S. international airport in 1998. To me, it looks much like the standard metal detector scanners you walk through at all airports. I was asked (by who I believe was a U.S. Treasury Agent, as he introduced himself and flashed his ID quickly in my face so I couldn't read it) if I had any of the new $100 or $50 bills in my pockets. I looked in my wallet and saw I had one new $100 FRS note. I told him "yes", then he said "Good, but don't tell me how much". After saying he would "really appreciate it" if I would help them with a test, he asked me to walk through what looked like a typical airport scanner. No beeps. No noise. No sound at all. He looked at a computer screen and said "Do you have a new $100 bill?". When I confirmed that was true, he thanked me and told me to please move on. I tried to ask him how the machine knew that, but he ignored my question. I took a good look at the scanning system and believe I have now spotted them at Kennedy, Atlanta, Miami and Los Angeles airports.
The odd part about this is that these machines seem to all be located in the customs areas where you enter the U.S. from a foreign country. Obviously, they want to know if someone is carrying more than $10,000 into the U.S. Common sense dictates that they should be more concerned about people leaving with more than $10,000 if they're really trying to thwart the drug dealers.... until you begin to realize that there must be some other hidden agenda: They are apparently going to stop money from entering the U.S. for a reason.
Will the President call for the confiscation of all gold bullion and bullion coins as Roosevelt did? Who will end up with it? The Federal Reserve System owners, just like before. Since June 1998, international gold supplies have been so low that some private Swiss Banks have been paying a premium above the market wholesale value for gold bullion. This was confirmed to us by a gold and diamond mining Chief Executive from Rex Mining in Guinea, West Africa, who supplies raw gold to a major Swiss Banking company smelter and processor The spot gold market has been manipulated to keep the price low so that the Federal Reserve System owners can purchase all that is available through their various trusts and corporations. World gold availability on the open market is now at a record low and mining production of gold is also at a record low output.
What happened to 'supply and demand' with gold and silver? Normally, when supply is high the price decreases. When supply is low, precious metal prices increase. Perhaps the private FED will peg the new dollar to gold prices, as many experts have already speculated. What will stocks and bonds purchased with old dollars be worth then? Pennies to the dollar, so to speak. Who ends up being the only winner? The Federal Reserve System stockholders. They control the circulation amounts of paper money in the U.S. Combine that with the new scanner to stop large amounts from entering into the U.S., and the scenario amounts to a planned shortage of paper FRS notes, the banning of the older FRB notes, and the soon to be astronomical price of gold which most Americans will be forbidden to have or hoard, once again. The facts we've presented in this report all point to this.
People will be at the mercy of the federal government for daily food and for jobs. Checks are soon to be totally phased out. Banks issue ATM debit cards and tell you they must charge more for your account if you use a real live human teller instead of the machine. The switch is being turned on. This is not speculation. This is the truth of reality. It's already been tested, and their new system works. Just ask Jim McNeff of the DTC.
The day has come when you must decide to accept or reject the beast and the New World Disorder.
Part II of II-
You don't own your Stocks....or any of your Bonds...The Depository Trust Company does.
by Anthony Wayne
In Part I of this series, excerpts of which were first published in November 1995 by the former North Bridge News, we exposed The Depository Trust Company (DTC) as the Unknown $ 9.1 Trillion Company. It appears that our startling discoveries of the inner-workings of the DTC had only scratched the surface. We'd like to add more fuel to this blazing fire by further exposing the DTC and those behind it.
The Depository Trust Company has grown since October 1995. On July 1998, this amount was estimated by a DTC employee at more than $11 Trillion. As of April 19, 1999, the DTC itself has stated in a press release that their asset value is nearly $19 trillion. In 3 1/2 years, their assets increased nearly $ 10 Trillion. That's a lot of stocks and bonds supposedly held in trust. The latest trend over the past ten years is for stock and bond brokers to offer "book-entry ownership" only. Every book-entry stock or bond is literally owned by the DTC. Since 1985, most bond and many stock issuers have converted from the issuance of certificates to book-entry systems administered and controlled by the DTC. As of March 1999, the National Securities Clearing Corporation (NSCC) and the Participants Trust Company (PTC) are now merged into the DTC. Practically, there isn't one stock or bond issued that is not controlled by the DTC.
If you purchase any stock or bond through a broker, it is being held for you under a "street name" by the DTC unless you have specifically requested to hold the certificate yourself. If you have a book entry stock or bond, you won't be issued a certificate. It's important to note that you have purchased that particular stock or bond without becoming a registered holder of the actual stock or bond certificate. Instead, you have become a beneficial owner. The difference between the two is like night and day. Take the time to absorb and understand the following definitions:
REGISTERED HOLDER- A Registered Holder literally possesses, owns, and holds, his stock or bond with his name appearing on the face of the certificate. The company that issued the certificate has registered the owner's (holder's) name on their official books. This is the safest way to own a paper asset. You literally possess the fully registered certificate and only you can transfer or sell it. By all Rights and definition of law, you are the owner. You have it, you hold it, you possess it, and you keep it. You have the complete control over it.
BENEFICIAL OWNER- A Beneficial Owner is nothing more than a beneficiary, "One who is entitled to the benefit of a contract"- A Dictionary of Law, 1893. All book-entry stocks and bonds you purchase make you the beneficial owner, not the registered holder. The owner of a book-entry stock or bond is the entity or name that it is registered under.
The DTC owns that bond or stock, not you. Rather than in your name, it's registered (as the legal Registered Owner or agent) in their "street name", Cede & Company. (In the past, it may have been registered in your broker's street name, but this is no longer allowed). The DTC is the Registered Owner - holder - of your stock or bond. The DTC is the legal property-holder, share-holder, stock-holder, owner and purchaser. Your name appears nowhere on the book entry or certificate as the actual owner. Instead, you have been designated by the legal registered owner, the DTC, as the Beneficial Owner. This means that your lawful Rights in that stock or bond are confined to that of a successor or heir.
At the University of Utah College of Law, we found the following examination question about Cede & Co.:
The common stock of LargeCo, Inc. is publicly traded on the New York Stock Exchange. Over 2/3rds of the shares are registered on LargeCo's books in the name of Cede & Co. Cede is a depository company which holds the shares as nominee on behalf of brokerage firms, mutual funds and other active traders. The brokerage firms in turn are also nominees with respect to some of the shares, which they hold on behalf of their customers. Nominees, such as Cede and brokerage firms holding for customers, view the customer as the beneficial owner of the shares and consider the customer to be the one with the right to vote the shares; mutual funds, however, view the fund as the owner of the shares it holds and vote the shares themselves.
Most of the remainder of LargeCo's stock (26% of the total) is held by the Large family, which is still actively involved in management. LargeCo is aware that the beneficial owner of about half the stock registered in Cede's name is the Small family, who live next door to the Larges in downtown Rome, and that the remainder of the Cede stock is beneficially owned by several well known mutual funds.
According to the DTC, under the US Security and Exchange Commission (SEC) rules, you only have the right to "receive proceeds or other advantages as the beneficiary". You are not the owner... you are the consignee, "One who has deposited with a third person an article of property for the benefit of a creditor"- A Dictionary of Law, 1893. In legal terms, you are considered the heir presumptive or heir at law to the stock or bond you paid for. The DTC controls, possesses as creditor, holds and owns your book-entry stock or bond. This is a difficult pill to swallow for those who have placed their assets in stocks and bonds over the past decade. Your broker sends you a fancy accounting every month of your purported holdings, along with dividend and interest payments paid. The fact is, you only receive the benefit of ownership (interest and dividends) without holding title to your property. You are at the mercy of the registered owner, the DTC. If you don't believe this is true, then call your broker right now and ask them who's name is listed as the Registered Holder of your book-entry stocks and bonds. If you're lucky, the broker will tell you "why of course you're the Beneficial Owner", then you'll know the truth. He may emphasize to you that the stocks and bonds are being held in "safe keeping" for your own protection. This is broker language for "your stocks and bonds are held by the DTC in their street name as the creditor".
From J.P. Morgan's internet site:
Registered and beneficial shareholders
There are two types of shareholders: registered, who hold an ADR in physical form, and beneficial, whose ADRs are held by third-parties and are listed under a "nominee" or "street" name.
Registered shareholders are listed directly with the issuer or its U.S. transfer agent. The transfer agent handles the record-keeping associated with changes in share ownership, distribution of dividend payments, and investor inquiries; it also facilitates annual meetings. An issuer's depositary bank can provide the identities of registered shareholders on a regular basis. However, this may not provide the level of shareholder identification required for a successful investor relations effort. Registered shareholders are typically individual investors who have physical possession of their share certificates, generally in lots of 100 shares or fewer. The registered list also includes nominee names such as Cede & Co., which represent the aggregate position of the Depository Trust Company (DTC), the primary safekeeping, clearing, and settlement organization for securities traded in the United States. DTC uses electronic book-entry to facilitate settlement and custody rather than the physical delivery of certificates.
Beneficial shareholders, which can include individual as well as institutional investors, do not have physical possession of their certificates; third-party broker-dealers or custodian banks hold their securities on their behalf. These shares are said to be held in street name because they are kept with the DTC in the name of the broker-dealer or the custodian bank - not the underlying shareholder. Lists of beneficial shareholders who do not object to disclosing their holdings are available from banks and broker-dealers. These lists, called NOBO for Non-Objecting Beneficial Owner, typically provide the names of individual investors.
To help identify institutional investors, who do not usually disclose their holdings, issuers use publicly available filings. Large holders, including investment managers, are required to make periodic filings - such as 13-F, 13-G, and 13-D - with the Securities and Exchange Commission (SEC) disclosing the name and value of the positions in their portfolios.
Which brings us to the street name used, registered, and designated by the DTC as the registered owner of over $19 Trillion (USD) of our stocks and bonds... CEDE & Co. Everyone in the brokerage business keeps pronouncing this name as "See Dee" and Company, but it's spelled C-E-D-E and pronounced "Seed". This is where the real irony comes.
According to Black's Law Dictionary, Sixth Edition, 1990, the word Cede is defined as "To yield up; to assign; to grant; to surrender; to withdraw. Generally used to designate the transfer of territory from one government to another". In the Black's 1951 Fourth Edition, it lists the following as supportive case law; Goetze v. United States, C.C.N.Y., 103 Fed. 72.
Have you made the connection yet? Your book-entry stocks and bonds and all stock and bond certificates purchased through your broker and held by them under your brokerage account are owned by CEDE & COMPANY (the DTC) as the registered owner. You have surrendered, assigned and granted ownership to someone else other than yourself. Their name says it all.
How ironic and sarcastic can they be?
"CEDE- To surrender possession of, especially by treaty. See Synonyms at 'relinquish'." -American Heritage Dictionary of the English Language, 3rd Edition of 1992
If Americans had any idea that they have relinquished the lawful ownership of their stocks and bonds to someone or something else, there would be a revolution. In a sense, that's why we are exposing this paper asset scam to you. The point is, now that you know the truth, do something about it and get your assets back into your name.
Our suggestion to you is this: If you don't literally have every stock and bond registered certificate in your possession, then promptly call your broker and tell him you want all your securities transferred and re-registered into your name as the Registered Holder and Owner. If he says he can't do that because your stock or bond is a book-entry transaction only, we strongly suggest, for your own security, that you sell your book-entry assets immediately. Don't let the broker tell you that it's "safer" for you if they keep your certificates. Remember, you know the truth. Even if all your stock and bond certificates were burned in a fire, the process to have them replaced is simple. If someone were to steal your certificates, you simply report them stolen to the company that issued them and they're automatically cancelled, just like a stolen credit card. Replacement certificates are then issued to replace the lost or stolen originals.
Most people don't realize that when they open a brokerage account, they have entered into an contractural agreement allowing the broker to assign the stocks and bonds to an undisclosed creditor, the DTC. (We suggest you read the small print on your brokerage agreement). This gives the broker your express written permission to place all your securities into the ownership of the DTC. Your broker is an agent for the DTC through mandatory Securities and Exchange Commission regulations and mandates by the Federal Reserve System private bank. Your broker represents them, not you. Your brokerage account is nothing more than a ledger of accounting. It reflects no assets held in your name. The assets are registered in a "street name" that is not you or your name. Sure.... you receive the interest and dividends, but you do so as a beneficiary to the real owner. Your brokerage account in no way, shape, or manner reflects who literally owns your securities. What you own is a brokerage account and nothing more.
A greater consideration is just exactly who does the DTC hold these securities for? As the owner, who has the DTC pledged these securities to? Our research points to the Federal Reserve System, an international private banking cartel with major offices found in Moscow, London, Tokyo, and Peking. By treaty with the United Nations and in compliance with the Bretton Woods Agreement, the DTC under regulation of the Federal Reserve System has pledged all those stocks and bonds to the International Monetary Fund (IMF). These are the same paper securities found in your IRA and pension fund accounts, as well as in your brokerage account. Remember, you don't own them.... you're just a beneficiary.
The truth is, the securities you purchased and paid for with your hard earned money is collateral for the United Nations which is backed by the Federal Reserve System and it's associated agencies, such as the International Monetary Fund. Is it any wonder that the UN can operate year after year with increasing budgets, but without sufficient funds? The UN has nearly $19 Trillion of backing and reserves, thanks to millions of duped Americans. We are financing the New World Dis-Order with our stocks and bonds. [<>] [Ming the Mechanic]
Category: Information
27 comments
DTC is merely stocking up for our falling.............
31 Oct 2003 @ 17:44 by koravya : Thanks for this Info
I appreciate it,
and so the Economics students
I share it with.
Clearly, we all need to know
what kind of scenario we may be looking forward to.
6 Nov 2003 @ 09:14 by Stefanti @80.137.195.30 : Weak
The more I learn about the "free" global economy over the years, the more unbelievable it looks and the more weaker I feel. What to do with the information now? Sell the few shares I hold? This sort of information makes long term planning increasingly difficult.
Stefan Thiesen
6 Nov 2003 @ 14:17 by ming : Investing
Well, if the little secret mentioned above actually resulted in all stocks being confiscated, the world economy would crash. So, I don't really think that's what anybody has in mind. More likely it is being used as a collateral. So, I wouldn't really change my investment habits based on this. Diversification is always good, of course, so don't just have stocks.
10 Nov 2003 @ 03:13 by Stefanti @80.137.206.87 : Investing
Well Ming - what I mean also is that by simply buying stocks, we all seem to hand over incredible power to an organization of tremendous size and with totally dubious goals and no democratic legitimation whatsoever.
10 Nov 2003 @ 05:29 by ming : Handing over power
Yeah, but it is worse than that. By just using national currencies for anything whatsoever we all hand over incredible power to essentially the same unelected bunch of people. So, if we are to create an alternative, it would have to cover most aspects of what we need, or you'll just be feeding another arm of the same monster. We'd need an economic system that isn't tied in at all with dollars and the stock market and banks, but that would fill the same needs that are met for us from those. I.e. an easy way of gathering and transporting and storing and exchanging tokens of value. And that is not as unlikely a battle as it might seem. If somebody came up with some expanded PayPal type of scheme that really worked better than the alternatives, and which we could trust, and which was anchored into different bedrock, lots of people wouldn't look back at all.
22 Dec 2003 @ 14:11 by tony @68.14.28.235 : dtc/cede
Bank deposits appear to be similar to stock "deposits" with cede. Check your state laws. For instance, in MA, funds on general deposit in a bank are the property of the bank. The bank account is the property of the depositor, and the relationship between the depositor and the bank is that of creditor to debtor. If you have your property in the hands of a third party, the third party might unlawfully (without a court order) deprive you of your asset. Of course you can then sue them, if you can still afford to do so!
26 Jun 2004 @ 15:02 by hscott @68.52.209.126 : Trying to verify
I checked out the DTC annual report and cannot find the numbers you suggest. Their Asset column for 2002 shows $17.9 Billion NOT $23 Trillion as you state. And the Liability column shows approximately the same value, which would make sense if they are holding securities in trust.
Where exactly did you get the $23 Trillion dollar number?
26 Jun 2004 @ 16:05 by ming : Verification
Glad you're checking it out. Well, part of the trick is that DTC (which handles stock transfers) is a separate company from CEDE (which is the legal owner), but CEDE is a wholly owned subsidiary. The way I understand it. But let me see again where I found the number ... Yeah, the document called DTC Consolidated Financial Statements shows 17.9 billion in assets. I think it was the annual report. Which has changed since last year and now shows the 2003 report. ... So, it says its subsidiaries settled transactions worth $923 trillion, and it says that values of securities on deposit is 24.6 trillion, which sounds like that 23 trillion number for 2003 rather than 2002. Hm, I do seem to remember them saying it more directly, and using the word "assets". But it was in a somewhat promotional piece (like the annual report), where they were bragging about it, rather than in their actual financial statement.
Anyway, a key to the argument is what the relation is between DTC and CEDE. If DTC owns CEDE and CEDE legally owns those now 24.6 trillion - that's what's remarkable. Even if everybody involved will say that "oh, it is just a formality, and of course it really is the stock holders' stocks". Oh, even if they didn't own them, it should be major news that they're even holding that amount of stocks for anybody. But the truly earth-shattering part would be the CEDE part.
Unfortunately, the relationship between DTC and CEDE, or even the factual existence of CEDE, is based on heresay and rumors. I.e. I haven't seen any documentation of it. And obviously DTC don't even mention CEDE as far as I can see.
Even if they do own CEDE, and CEDE does own all the stocks, I don't find it surprising that they can get away with ignoring it in their actual financial statement. If the auditors even knew that, they would probably be quite content with the explanation that, oh, it is just stuff we're temporarily holding, and it is of course all the customer's money. All seems logical and reasonable. Except for that it isn't, if the legal reality, when it comes down to it, is that they own it and the customers don't.
28 Jun 2004 @ 09:38 by hscott @68.52.209.126 : re: verification
I understand your concern but from a pure accounting perspective the $23 trillion dollars in assets would be offset by exactly the amount in liabilities such that in terms of book value its a wash. Neither company is "worth" $23 trillion. This facility is absolutely necessary in order to have a liquid marketplace and that liquidity is a big portion of the grease that keeps the machine of our economy moving. The best thing that could be done to stabalize the markets and defend us from bubbles that ultimately burst would be to eliminate the taxation of dividends. If all companies paid dividends, that would be a throttle switch which prevents irrational pricing. PE ratios would be held in check by Dividend Yeilds because stockholders would have two sources of value, the equity value of the stock AND the stream of cash flows from dividends. The lack of dividends by most companies is what creates upward price pressure beyond a rational valuation of a company because that's the only way a person can make a return in the markets. Every trade has a seller who think the stock is capped out and a buyer who thinks it has upside potential.
28 Jun 2004 @ 14:07 by ming : Economy
It is probably very useful to have mechanisms like that in the economy. And, I'm sure, normal proper accounting wouldn't count the $23 trillion as an asset, even if it is in CEDE's name some or all of the time. For most people it matters not very much if CEDE owns their stocks, because they let you trade them and get the money. A bit like how most everything else works in the money system. You put your money in the bank without much hesitation, because you expect that you can use it when you feel like it, and most of the time you can. You trust the paper money others give you, even though it is only pieces of paper, because you expect them to convert to stuff you want, any time.
But it can also get to look a bit like musical chairs. It is no problem at all as long as the music keeps playing. We hope it doesn't stop, and maybe it won't. But if it does, one might suddenly become painfully aware of a lot of small print one didn't pay attention to. Like that one's stocks are owned by somebody else. And I understand that it works in a very similar way the ownership of real estate and of motor vehicles. I'll have to write about that some other time. But, essentially, unless you have a land patent on your land, it is really owned by a government agency. Which gracefully lets you live there and use it and act like you're buying and selling it. Likewise with a car. There's a certain piece of paper that most people don't know about that the factory sends to the government, unless you insist that they don't and give it to you instead. Which legally (again, just as a formality, to serve you better) gives the government the ownership, so they can then issue you a pink slip which gives you the right to use it, including the ability to transfer that right to somebody else (=selling it).
30 Nov 2004 @ 18:03 by Kent @63.85.201.10 : Necessity? Any accountability to me?
hscott said:
"This facility is absolutely necessary in order to have a liquid marketplace and that liquidity is a big portion of the grease that keeps the machine of our economy moving."
Let's assume your premise is correct; does the need also justify ignoring individual investors (me)? While I am not "old", I have been around long enough to know when something is not on the up-and-up. Why avoid me?
This clearinghouse has no advocates for the individual investor. Its secondary reason for existence has become that of feeding the financial community whose livelyhood depends upon betting on the future values of stock. Translation: it benefits those who expect something for nothing.
See my link above for my frustrating trial with this "necessary facility".
21 Dec 2004 @ 18:42 by di @66.139.39.158 : other trillion companies?
What information! Thank you for all of the details.
18 Mar 2005 @ 16:00 by Daniel Schoonover @192.252.76.200 : CMKX.PK
Sir,
I cannot tell you how upset that I, and many other investors are at this time. Every time CMKX comes close to putting out info, the DAMN Sec puts a stop to everything thats happening. When they could of done it months ago!!!! And they are saying they haven't filed this and that.. Bull crap!!!! trying to protect the investors my butt!!!! the sec is going to get caught up in this nss stuff, and to me and a hole lot of others are starting to see where the real bad guy's are. IE MM'S, SEC, AND DTCC. I have sent president an e-mail about this matter, so I am sure that he has a idea what is going on. Just like to have some input on what you think is going on with CMKX.PK and there future.
Daniel E Schoonover
10 Nov 2005 @ 01:33 by H-J Buchi @205.250.99.99 : NSS
Incredible information. How many have to work after they thought they can go for retirement?
Like every bubble even this one has to burst. Not a question IF but WHEN.
CMKX is one of the biggest eye opener to most investor in the world. My hope is are all of them aware of the situation and read up for there own good.
11 Nov 2005 @ 00:37 by John D Roulston @210.84.24.210 : CMKX
I am a shareholder CMKM Diamonds (CMKX) and a member of the cmkxownersgroup.
I have requested and paid for the Certificate of my 34,363,000 shares and this was actioned on the 9th November, 2005 after over two weeks attempting to get my broker, Success Trade Securities to do so. I phoned almost every business night following up many emails and faxes to them as I received either no reply or insufficient advice requested.
I live in Western Australia and rely on Social Security fortnightly payments to support both my wife and self. We are in our 70's and both have heart problems.
Using telegraphic Transfers of funds from my ANZ bank to Penson Financial Services, (the Clearing firm for Success Trades) and Penson"s bank, JP Morgan Chase Manhattan Bank NY. (without an intermediate bank involved) there has on two seperate transfers last week, an amount of USD $22.50 (total $45.00) deducted or lost along the way. Success Trades advised JP Morgan do NOT charge a fee for international TT's, however, my ANZ bangk claims they do charge a fee. This is becoming an ongoing saga and I must have every dollar accounted for, this seems unlikely.
Please, if possible advise me how to resolve this issue.
Sincerely
John D Roulston
12 Nov 2005 @ 03:39 by Louis L Kleiman @68.215.41.139 : The ubknown trillion dollar company
Sir:
Thank you very very much for your report.
24 Nov 2005 @ 20:52 by Tim @63.19.73.152 : Stock Borrow Pool
As we enter 2006 and the emergence of 'bugus electronic entries' tied the the naked-shorting abuses within the brokers/SEC/DTCC come forward as with Overstock.com, CMKX and the litigy of others affected by the counterfieting of shares, we should soon see definitive proof of the abuse Regulation SHO has identified by the SEC as being a real problem on 'fails to deliver' that force companies out of business and allow the short-manipulators off scot-free with our investment dollars.
see - investigatethesec.com
25 Nov 2005 @ 03:07 by S.Kolach @206.75.114.178 : very good
Very well written
24 Jan 2006 @ 02:24 by Flying Moose(cmkx-treme) @67.150.68.35 : CMKM RR
Click link type in CASAVANT...
[link]
29 Jun 2006 @ 15:04 by rl @72.5.34.20 : black monday
Why does the author assume that Black Monday was deliberate? The man he is on the phone with says they performed their first controlled test 4 or 5 years earlier. He said this in 1995, making the first test in 89 or 90. Black Monday happened in 1987, 7 years earlier. I don't see how he makes the connection that Black Monday was a controlled test. And if it actually was, I highly doubt the man on the phone would mention the test and Black Monday together.
29 Jun 2006 @ 15:24 by rl @72.5.34.20 : cede & co
also it appears that Cede & Co is definitely an actual company, if there was still any doubt. Here is a court document in which two companies were arguing over the final value of some shares of stock, and in the document the court talks of how Cede & Co held the shares for the company as the registered holders of the stock.
http://courts.delaware.gov/OPINIONS/(q21gr5qukouhulbt5ppww13j)/download.ASPx?ID=60900
15 Aug 2006 @ 09:43 by Chief Rotimi Williams Aiyese @196.1.189.6 : MORE INFORMATION NEEDED
Dear Sir/Madam,
i will like to kown more about your organisation. kindly send me a list of your equipments for detecting & mining diamond gold.
kindly get back immedeatly i will like to transact a business with your organisation.
thanks
21 Sep 2008 @ 01:40 by hogan @67.142.130.40 : false info
The actual total assets of the DTCC is about $30.2 billion. Realistically it's not that strange, but it is very frightening that they hold 98% of all stocks. It's just another way to take things away from the consumer. All currency was traded in for paper, "legal tender," now all the paper will be made into credit card form. It'll all be based off a number on the card. Checking account, assets, employment info, birth info, everything will be on one card, and then slowly everything will be transfered into a microchip implanted in the forearm. That's my theory though.
21 Sep 2008 @ 02:15 by SomeDude @67.103.202.136 : hmm check this out
this document mentions CEDE & CO as one of the parties along with DTC and Bank of New York.
This document was found when doing a search into the activities of a law firm known as 'blank rome'. A strange name for a law firm.
Blank rome was discovered when trying to find more information on LargeCo owned by the Large family of Rome.
[link]
Hmmm? Hmmm!
21 Sep 2008 @ 02:18 by SomeDude @67.103.202.136 : ooops
here is the link to above mentioned document
[link]
21 Sep 2008 @ 08:15 by V Kelly @121.213.157.165 : DTC
With 917 trillion dollars traded in 2002, I think it could be reasonably assumed that this covers real estate transactions as well, not just in the USA but globally. Look at your or any 'title deed'- you are not the owner, you have an interest in the title only. You are not the owner because you had nothing to pay for it with. You attempted to 'pay' with 'their' worthless Fed notes or some sort of 'legal tender'. It's like buying acorns off the old oak tree and tendering the tree's autumn leaves as payment, and they laugh at you. The actual holder of the security, or more accurately, the security interest holder is probably behind DTC, could be IMF , CROWN, UN or could have been Bear Stearns etc. Your property taxes go directly to the security interest holder as a dividend. Mind, they get 'equity' or sweat dollars from you, they deal in their dirty printed worthless bucks which are just like scoops, they scoop equity and sweat and labour back to the security interest holder whether that be the IMF, or the 'Crown' or other monstrosity, depending on the locality. Just stop and think, it is so easy most just can't see it.
Sunday, 21 September 2008
the Depository Trust & Clearing Corporation.
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