To their credit, the Ombudsman Office from FIMRA just called me back 2 days after I lodged a complaint through their office. They asked if I would consent to supplying my phone number so the Operations Office could resolve the issue with the FSAH mini bonds.
Don't know if they would ACTUALLY do something as yet, but it seems to me that the more squeaky wheels make some noise, the better the odds that they might have to do something. My interaction was limited, but "the squeaky wheel gets the grease".
Here is the Ombudsman link,
Most of you guys & gals are far more elegant than I, let 'em have it!
"An Investor Relations Rep with AGO explained to me the SEC permits de-listing so long as it's done within a certain number of days after the acquisition has been completed."
So the SEC is heavily involved in the travesty of justice committed against investors in general. I knew there was some kind of loophole associated with acquisitions that allowed the acquirer to de-list securities that were IPO'd as a listed security. I can not site examples, but I now that there are numerous cases where perpetual preferreds have been delisted from the NYSE and relegated to the pink sheets.
This is truly a travesty of justice. There should be nothing about an acquisition that allows the acquirer to break the convenants of a previously issued security.
Why does the SEC not take the next absurd step and create a loophole where the acquirer does not even have to service debt anymore after an acquistion. Seriously, if the SEC is going to let an acquiring company ignore the legal terms of a investment security, why not just cancel the security. The SEC needs to be NUKED! I thought the SEC was supposed to protect investors....but obviously the SEC has been on the take for a long time.
Okay, Let me say it this way. So long as a baby bond is on the NYSE there is no risk. However, should a company that has baby bonds be acquired like FSA and Bell South were then the bonds are at risk. An Investor Relations Rep with AGO explained to me the SEC permits de-listing so long as it's done within a certain number of days after the acquisition has been completed.
Can anyone who has established a contact with FINRA regarding the FSA baby bond rape please establish with them exactly which NASD (or other) regulations are they citing as a basis for their action to move the bonds from pink sheets to the OTC bond market?
If you could post those exact regulation numbers here let's see if we as a community can start to get our arms around the legal obstacles that we need to overcome to reverse this outrage.
I'm 99.9999% sure that begging FINRA for mercy isn't going to accomplish much. Asking the SEC to overturn the action might make more sense but should probably be accompanied with references to specific regulations.
The NASD regulations I would have thought would only affect issues prospectively not retroactively from the date the regulations were promulgated. It will be interesting to know the date of the regulation and compare it to the IPO dates of the FSA issues. The IPO dates for FSAD, FSAH, and FSAE were 2001, 2002, and 2003, respectively
You still aren't making your point clearly. What you are trying to say is all baby bonds *listed on the pink sheets* are at risk of being stolen by FINRA and moved to the OTC bond market.
There are plenty of baby bonds on the NYSE and these are NOT at risk. Therefore your statement "all baby bonds face the potential of being delisted" isn't strictly correct.
It's still an extremely dark day for all retail investors. The SEC is truly asleep at the wheel if it allowed any new regulation to move equity traded debt off the pink sheets to the over the counter bond market.
Does anyone know which NASD or other regulations FINRA is citing as its basis for grabbing the FSA bonds?
I got a call from FINRA regarding an email. The woman I spoke to told me that it should be in the TRACE system. She said that the other baby bonds were under review for removal from the pink sheets. She is not an attorney, but would forward the email to another person. I am not encouraged at all by this and now am inclined to sell the 2 baby bonds on the pink sheets that I own now rather than later.
Your smooth talking rascal. They actually called you back!!. I sent them an email and gave them my phone number, but haven't heard from them. Seriously, I am impressed that they got back to you. Hope springs eternal.
I think that Finra is not the appropriate place for the minibonds.
This is more or less confirmed by the fact that the only other minibonds that trade on Finra are the orphaned GM minibonds (For some reasons, the GM executives while shaking in their pants about whose head is going to be chopped next(afer Wagoner’s), forgot all abou the minibonds).
Minibonds trade like shares and they need continuous real time information.
That is not possible on finra which nay be tolerated by the regular bonds(whose trade sizes are huge. say 250000 to 1MM+), but totally unsuited to the tiny trade sizes of the minibonds. Ex: 200 shares at $15!
My banks still could not get any quotes on FSA bonds!
And the huge markups the little guys have to pay on 100 shares are obscene!
The only place for the minibonds is an exchange (NYSE or Nasdaq).
I really do not know how can anybody on Finra resolve the problem!
It is like telling a woman who wants to marry you that she is too ugly for you!