Why Does the NSCC Want A Get Out Of Jail Free Card?
A good question is why the NSCC feels the need to pass a rule essentially saying that they have limited liability for willful misconduct and violating securities laws. Why would they need to have that on the books, do you think? Is it because they know that they have been willfully violating securities laws for years, know that it will come out in court, and want to have a piece of paper to fall back on? That's the only explanation I can come up with. And frankly, it corroberates the theory that the stock borrow program violates a host of securities laws, that the NSCC knows it, and that they have been counterfeiting stock for years and just now are starting to catch on to the idea that they will get caught. It would appear that the rats are beginning to look for ways to jump ship, and are jockeying for ways to protect themselves.
Go see the rule at www.nscc.com/impnot/notices/notice2005/a6029.pdf - and wonder at the hubris.