Jim’s Mailbox

Posted at 10:37 AM (CST) by & filed under General Editorial, Jim's Mailbox.

Comment on Direct Registration: 


What can be done and has been done for taxable accounts is to take DRS one more step which is certification. The Certificate is in the name of the custodian and the tax shield account. The custodian holds the certificate. This results in clearly defining the asset as not belonging to the bankrupt should bankruptcy occur. You are also protected because your signature is required to transfer. This doable strategy causes no taxable event as it changes nothing in terms of ownership.



Dear Jim:

I just wanted to chime in that Scottrade also makes the process easy. There is a simple form to complete for each security one wants transferred out or back into the brokerage account. That is only for the taxable account. I have yet to explore what I can do for the securities in my Roth IRA except to liquidate them and transfer the funds out. Securities cannot be transferred in kind from a tax-shielded account to a taxable account.

CIGA Stephen


Dear Allen:

I write a daily comment on the gold markets on the website, jsmineset.com.

You might find it interesting.

I have recommended to all PM shareholder that they consider taking their shares off the balance sheet of their broker and clearinghouse.

The easiest method of doing this is to have them Directly Registered with the Transfer agent where the company has permitted this service.

I am motivated by the recent group of failures of clearing houses in which customers lost all their assets.

I recommend you consider doing the same if your shares are held by your broker on your behalf.




Dear Mr. P:

Direct Registration of tax sensitive accounts can only be accomplished with the help of the custodian.

For interest TRX/TNX shares have been certificated in the name of the custodian and the name of the account and the custodian holding the certificates.

In case of the bankruptcy of the custodian these items are clearly marked as not the asset of the custodian, and will be released out by the bankruptcy judge quickly.




CIGA Comment of the Direct Registration System


In case you wanted to share, the transfer to DRS via my Vanguard IRA brokerage holdings was as simple as a phone call. Find out who the transfer agent is for each security, verify through the transfer agent, then make the request to your broker. As Jim has stated, do your homework first! Now I will sleep better at night.

CIGA Keith


Dear Dylan:

We all need to prepare for what is coming and Oh yes, they will be saved because they are the government.


U.S.banks told to make plans for preventing collapse


Regulators asked five big banks to make ‘recovery plans’
7:05 a.m. CDT, August 10, 2012

U.S.regulators directed five of the country’s biggest banks, including Bank of America Corp. and Goldman Sachs Group Inc., to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help. 

The two-year-old program, which has been largely secret until now, is in addition to the “living wills” the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress. 

Officials like Lehman Brothers former Chief Executive Dick Fuld have been criticized for having been too hesitant to take bold steps to solve their banks’ problems during the financial crisis. 

According to documents obtained by Reuters, the Federal Reserve and the U.S. Office of the Comptroller of the Currency first directed five banks — which also include Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co. — to come up with these “recovery plans” in May 2010. 



Dear Jim,

WASHINGTON (Reuters) – The U.S. Justice Department said it will not pursue criminal charges against Goldman Sachs Group Inc or its employees related to accusations that the firm bet against the same subprime mortgage securities it was selling to clients.

Brings a tear to one’s eye, doesn’t it?

Not even the ubiquitous “slap on the wrist.”

There are no lines in the sand to cross anymore when it comes to ethics. We now have an open playing field.

Ever wonder why the bankers, who brought the entire world financial system to its knees, were never prosecuted? I know it’s a stretch, but “Accountability has been foresaken and “Pareto Optimality” has been breached on Wall Street.

Marie Antoinette would be proud.

So would Auric Goldfinger, as his assets would benefit greatly in the ensuing chaos.

CIGA Wolfgang R

Justice Department drops Goldman financial crisis probe

Thu Aug 9, 2012 9:46pm EDT

By David Ingram and Aruna Viswanatha

WASHINGTON (Reuters) – The U.S. Justice Department said it will not pursue criminal charges against Goldman Sachs Group Inc or its employees related to accusations that the firm bet against the same subprime mortgage securities it was selling to clients.

The decision not to prosecute Goldman, a firm held up by critics as a symbol of Wall Street greed during the 2007-2009 financial crisis, highlights the difficulty in prosecuting crisis-related cases.

Few expected the bank to face criminal charges, but in April 2011, U.S. Senator Carl Levin asked for a criminal investigation after the subcommittee he leads spent more than a year looking into Goldman.

The accusations were aired in a heated 2010 Congressional hearing in which Levin grilled Goldman Chief Executive Lloyd Blankfein for hours about whether it was morally correct for the firm to sell its clients products described internally as “crap”.

“The department and investigative agencies ultimately concluded that the burden of proof to bring a criminal case could not be met based on the law and facts as they exist at this time,” the Justice Department said in a statement late on Thursday.



Hello Mr. Sinclair,

I want to take the time to join with thousands of other individuals who wish to thank you for all of your concern for us. There is obviously no reason for you to devote the time and energy that you do each and every day for “CIGA’s”, other than you tremendous care & compassion for us. I’m certain that you sometimes grow weary of dealing with the worries that many share with you, but I want you to know that your efforts are greatly appreciated!

Anyway, I also decided to write to you today to share a new term with you that my wife, Dawn, just coined. It was so good that I thought it should be shared with you, to in turn share with the world.
So without further ado, here is the term: Government RIG-ulators

Since our country is currently overrun with ‘Government RIG-ulators’, I thought it would be appropriate for anyone who refers to them in print to identify them with their appropriate title!

Thank you again for all you do!