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Election Season 2014

And it has brought us to this trainwreck called ObamaCare and we have bankrupted our kids and grandkids!

We are now headed into the 2014 Election Season and common sense and conservatism are on the rise. Please stand-up and be counted!

Reading Collusion: How the Media Stole the 2012 Election is a great place to start!

The Founding Father's Real Reason for the Second Amendment

And remember the words of Thomas Jefferson "The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government." See Video of Suzanna Gratia-Hupp’s Congressional Testimony: What the Second Amendment is REALLY For, below (u-tube HERE).

The Leaders Are Here... Palin, Cruz, Lee, Paul, Chaffetz....

T'S A WONDERFUL LIFE

Can You Really Still Believe That None of These People Would Have Done a Better Job???

Bloggers' Rights at EFF

SIGN THE PETITION TODAY...

Showing posts with label SEC. Show all posts
Showing posts with label SEC. Show all posts

Sunday, April 29, 2012

Pathological Politics – Predatory Partners and Persecuting Patriots

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By: Terresa Monroe-Hamilton - the NoisyRoom

In the notorious tradition of Nixon’s Enemies List, Obama is now openly persecuting patriots at every opportunity. He tries to shame them, taint them, marginalize them and if all that doesn’t work, he sends goons after them and either imprisons them or threatens them with imprisonment. He’s using every agency at his disposal, with a special emphasis on the EPA, FDA, IRS, SEC, ATF and Fish and Wildlife authorities. And he has hired a whole governmental ‘army’ to enforce his dictates and go after his enemies. Welcome to the American Stasi.

We have watched how Obama smears those who would dare to donate to Mitt Romney’s campaign. That should make us want to donate even more, not back down and cower in fear. We all know that Obama is determined to be reelected legally or illegally – he doesn’t care. He just wants to hold on to his power, so he can finish what he started – destroying America with his pathological politics of corruption, greed and evil. If the elections don’t suffice, he’ll invent an emergency to ensure his death grip on the throat of America.

Look at how Gibson Guitars has been treated. They have been raided multiple times, but they can’t defend themselves because in the last three years, this administration won’t say what crime they are charging them with. They are destroying a good and honest company that creates jobs and does business production here in America. Their crime – successful capitalism. Something Obama will not tolerate.

Then there are farmers. The EPA is clamping down on the Amish and others who don’t follow every regulation in an effort to put them out of business and it is working. I hear the stealthy, sly footsteps of Cass Sunstein. Soon, very soon, the government will control all our farmland and food. Then if you step out of line, they’ll just starve you to death. Farming on your own property will be illegal. It’s coming – bet on it. Right now they are seizing farmer’s bank accounts. The FDA is now using the terrorist based “Bank Secrecy Act” as justification to invade, investigate and even confiscate the bank accounts of Americans in the agricultural business.

From The Examiner:

The Bank Secrecy Act that came out of the events of 9/11, which has been expanded during the decade long war on terror, is now being used to criminally attack farmers who choose not to use banks as their sole or primary source for monetary transactions. This is especially relevant after the credit crisis of 2008, where many American[s] began withdrawing money from banks after bank solvency came into question.

This banking law, which allows for the unwarranted confiscation and seizure of funds based solely on perceived impropriety, is one of many new policies created under the Bush and Obama administrations to control the public, and the flow of money in the United States. Beginning in 2013, new capital controls are set to be implemented which will make it extremely difficult to move dollars in and out of the country, and more recently, the Obama administration diverted funds from other departments to hire thousands of IRS agents for the new healthcare system that will also commence in 2013.

Ted Nugent on Regulations

Glenn Beck – We Are All Criminals Now

Now, we turn to Ted Nugent, who has been all over the news as of late. Evidently Obama has had Ted Nugent in his sights for at least two years and probably much longer. Nugent was charged with breaking a law – of which the judge hadn’t even heard – while hunting black bear in Alaska. But you can bet the Feds did and they brought charges hoping to snare Nugent. But that didn’t work out as they intended – Nugent accepted that he ‘unknowingly’ broke the law and the sentence carried the same weight as jaywalking, a misdemeanor offense. They tried to snag him in California and accused him of baiting a deer. A total falsehood and you’d have to be a moron to do it since he was airing the episode on TV. They stormed three of his friends’ homes and then searched a room not covered by the search warrant. They found a set of brass knuckles and told Nugent’s friend they would drop the felony charge if he would help them ‘get’ Nugent. Fortunately Ted has very good friends. But they took all kinds of stuff from their homes.

Now, they have made Nugent slaughter his pigs in Michigan – labeling them as feral. Since when is livestock you keep in a pen ‘feral?’ Obviously they either don’t know or more likely, don’t care what the definition is. They were the wrong color and thus deemed ‘feral’ and Nugent was forced to slaughter them. It’s tempting to draw conclusions about motives related to winning points with the Dearbornistan locals, given that the “reason” for slaughtering the pigs is clearly a pretext; one wonders to oneself, could squeezing pig farmers be calibrated to curry favor with a Muslim community?

He’s also been persecuted for his Oryx in Texas as well. They are harassing him about raising these animals when he brought them back from the brink of extinction. A three legged little one was born and he is not being allowed to put it out of its misery. It will die a slow and painful death. How is that compassion? If he puts it down, it’s a felony.

Someone high up would not allow Nugent to attend a SEAL’s funeral when it was the hero’s final wish. His concerts have been cancelled in several cases as well. The Feds interviewed him over comments he made at an NRA conference recently. He was cleared, but I guess free speech is no longer very ‘free’ in this country. Nugent is a good man – a patriotic man. That’s a lot more than you can say about Obama and his thugs.

This isn’t just about Ted Nugent folks – it’s about each and every one of us. They are coming after the bloggers, the patriots, small businesses, you name it. There is no way we can avoid violating one of these bogus laws. It’s only a matter of time. Obama doesn’t care about the Constitution – it means nothing to him. They are coming and we had better stand together, or we will all hang separately as patriots. The way Nugent is being treated is absolutely disgraceful.

From Kim Strassel at the Wall Street Journal:

He’s targeted insurers, oil firms and Wall Street—letting it be known that those who oppose his policies might face political or legislative retribution. He lectured the Supreme Court for giving companies more free speech and (falsely) accused the Chamber of Commerce of using foreign money to bankroll U.S. elections. The White House even ginned up an executive order (yet to be released) to require companies to list political donations as a condition of bidding for government contracts. Companies could bid but lose out for donating to Republicans. Or they could quit donating to the GOP—Mr. Obama’s real aim.

We all know of Obama’s Enemies List, but do you know who his predatory partners are? Along with Communists and radicals, he has a special fondness for the Muslim Brotherhood. In fact, he has opened the front door of the White House and has told them to make themselves at home. These are the evil asshats who support and fund Hamas. These are Islamic terrorists of the ilk that carried out 9-11 and Obama embraces them while persecuting American patriots.

Rumors of War III

Obama is not even subtle about it. They have removed all references to radical Islam in federal publications. They allow Shariah Law to be carried out on American soil. Obama’s best friend is the Prime Minister of Turkey who gives him advice on his daughters. You see, it doesn’t matter whether Obama is a Muslim or not, his father was. Obama has Islamic street cred. It even gives him a basis for using Taqiyya against Americans. Obama is actively and aggressively promoting Islam around the planet and especially here at home. The only thing that matches his love of Islam, is his hatred of Israel.

If one is known by who his friends and enemies are, then Obama’s predatory partners and the patriots he persecutes are screaming volumes at us. It’s clear that his campaign of pathological politics and communism is on a set of tracks that leads somewhere we dare not go.

Saturday, March 10, 2012

Boycott PepsiCo… Here Is Why and Why You Should Be Concerned For More Than One Reason!

Obama Agency Rules PepsiCo Cannibalizing Aborted Fetus is 'Ordinary Business'

Stockholders will not be notified or allowed to vote on the measure

Photo: Kristin Masinter Photography

LARGO, Fla., March 5, 2012 /Standard Newswire/ -- In a shocking decision delivered Feb 28th, President Obama's Security and Exchange Commission ruled that PepsiCo's use of aborted fetal remains in their research and development agreement with Senomyx to produce flavor enhancers falls under "ordinary business operations."

The letter signed by Attorney Brian Pitko of the SEC Office of Chief Counsel was sent in response to a 36-page document submitted by PepsiCo attorneys in January, 2012. In that filing, PepsiCo pleaded with the SEC to reject the Shareholder's Resolution filed in October 2011 that the company "adopt a corporate policy that recognizes human rights and employs ethical standards which do not involve using the remains of aborted human beings in both private and collaborative research and development agreements." (Read full article below)

Jan 27, 2012 ... But Shortey alleged the patent is proof that the supplier - Senomyx -has crossed a moral line by using ... 6. Lucky Luke and the Smoke Nazis. 7 ...  US may ban the use of foetuses in food: Health24: Genetics: News

--> Obama Agency Rules PepsiCo Cannibalizing Aborted Fetus is 'Ordinary Business'  <--

LARGO, Fla., March 5, 2012 /Standard Newswire/ -- In a shocking decision delivered Feb 28th, President Obama's Security and Exchange Commission ruled that PepsiCo's use of aborted fetal remains in their research and development agreement with Senomyx to produce flavor enhancers falls under "ordinary business operations."

The letter signed by Attorney Brian Pitko of the SEC Office of Chief Counsel was sent in response to a 36-page document submitted by PepsiCo attorneys in January, 2012. In that filing, PepsiCo pleaded with the SEC to reject the Shareholder's Resolution filed in October 2011 that the company "adopt a corporate policy that recognizes human rights and employs ethical standards which do not involve using the remains of aborted human beings in both private and collaborative research and development agreements."

PepsiCo lead attorney George A. Schieren noted that the resolution should be excluded because it "deals with matters related to the company's ordinary business operations" and that "certain tasks are so fundamental to run a company on a day-to-day basis that they could not be subject to stockholder oversight."

Debi Vinnedge, Executive Director of Children of God for Life, the organization that exposed the PepsiCo- Senomyx collaboration last year (see www.cogforlife.org/senomyxalert.htm) was appalled by the apathy and insensitivity of both PepsiCo executives and the Obama administration.

"We're not talking about what kind of pencils PepsiCo wants to use – we are talking about exploiting the remains of an aborted child for profit", she said. "Using human embryonic kidney (HEK-293) to produce flavor enhancers for their beverages is a far cry from routine operations!"

PepsiCo also requested the resolution be excluded because it "probed too deeply into matters of a complex nature upon which shareholders cannot make an informed judgment."

"In other words, PepsiCo thinks its stockholders are too stupid to understand what they are doing with the remains of aborted children," Vinnedge stated. "Well they are about to find out just how smart the public really is when they turn up the heat on the world-wide boycott!"

Vinnedge is warning consumers to be on guard for the roll-out of PepsiCo's newest beverage that claims to cut sugar and calories by 50%. The product is called Pepsi Next and is anticipated to hit the market in the coming weeks.

PepsiCo stated that their goal with Senomyx is to produce new beverages with reduced sugars and calories. So is Pepsi Next the new Senomyx-PepsiCo creation?

While fetal components are currently not in the final product, there is growing concern among consumers that it could happen in the near future. With the explosion of health foods on the market, there is nothing to stop companies from using fetal remains as protein ingredients.

Impossible, you say? Actually because of GRAS rules (Generally Accepted as Safe) it might not even trigger FDA oversight. And that has consumers plenty worried about just what might be "next" from the industry!

It also makes Oklahoma Senator Ralph Shortey's SB1418 banning the sale of products that are developed with or contain aborted fetal remains, critically important for consumer protection. See cogforlife.org/oklahomasenator.htm  -  If you have doubts about this… a good question to ask yourself is why would this bill be necessary if this or something like it was not being done?!?

"We commend the Senator for his courageous move," noted Vinnedge. "The public is already saying no thanks to all Pepsi beverages and Pepsi Next is just that – the "next" product to avoid!"

To date, the world-wide boycott has expanded to include Canada, Germany, Poland, UK, Ireland, Scotland, Spain, Portugal, Australia and New Zealand.

Contact: Debi Vinnedge, Executive Director, Children of God for Life, 727-483-9251, debi@cogforlife.org

We originally wrote about this in October 2011: Senomyx: Pepsi Ignores Criticism on Use of Aborted Cells in Research.  People laughed and nobody paid attention.

Warning: Graphic Pictures & Subject Matter: Video: Can-a-baby - Family Fetus Food by Alexander Backman and Anthony J. Hilder

http://www.youtube.com/watch?v=gKtDeKbaMcQ&feature=youtu.be

"If the Bible were right and there was a period of time on this planet where Lucifer were in charge of a Global Government - A New World Order… getting the Stuple or Sheeple to consume the aborted babies of millions upon millions of children mixed in with soft drinks like Pepsi .. I would think that a "Satanic Sacrifice" would be served. If the story is valid, it would be more horrifying than to discover that we live among vampires and our prostetitions openly pray upon the defenseless and are most likely like Henry Kissinger, Zbignew Brezinski and Jacque Cousteau engaged in a program to mass murder billions of people who they consider to be useless eaters." Anthony J Hilder

Believe it or not here it is... canababy. Flavor enhancers derived from parts of human fetus and put into products you consume. Research it for yourself before you believe.

"Imagine the worst recorded Crime in the history of the world, then take a look at Canababy. Is this Cannibalism? Ted the Terrible Turner in one of his speeches in Northern California said that we were coming to it. We’ve heard many of you have seen Soylent Green or seen a Monster movie....so implausible because it was on fictional film that you could never allow yourself to believe it was happening and could happen in real life. While in China I often wondered what we were eating, could it have been Peking Dog? Only to find out we were eating a French Poodle. So my diet from Shinghang to Tongwa to begging was primarily made of bugs... fish I could point out .... and snakes that I could pull out of the baskets in which they were contained, but the rumors that aborted children were dried ground and eaten like those of the Rhino horn being ground and used for sexual enhancement caused me to think again. That’s all I ask you to do is to investigate these stories. Are there millions amongst us who have the minds of monsters....does anyone dare raise this subject, or should we let the chips fall where they may and ignore what seems to be overwhelming evidence that there are monsters amongst us." Anthony J. Hilder

"If a company uses aborted body parts in the food they sell, it can’t be by accident it must be by design. Is the canababy practice part of a ritual Satanic Sacrifice? If the company discontinues its practice does that make their crime somehow acceptable anymore than the ritual sacrifice of live children before the Owl Of Moloch at the cremation of care at the Bohemian Grove? Should Billionaire Banksters and Satanists be allowed to kill and consume children in the western world anymore than was done in Borneo or the depths of Africa in medieval times? Is a criminal less guilty if they can somehow cover it up? Should a company or an individual be considered innocent if they no longer conduct the crime?" AJH

Wake-up America… the name of the game being played by the elite is depopulation… depopulation of the useless eaters, those that can’t stand-up for themselves and those that protest too much. ObamaCare is part of that plan, so are GMO foods, the dumbing down of America, chemicals, removal of church, values & parental control, propaganda & manipulation of the facts, re-writing history, Agenda 21 and replacement of all decisions by Big Brother. Even the latest Fluke controversy is connected as information is coming out that Fluke is a Team Obama operative who may be related to Fabian/Progressive Margaret Sanger, founder of Planned Parenthood and promoter of eugenics and the Negro Project.

Please vote in 2012 and vote to make Obama a one term president and to remove about 98% of the existing Congress. 2012 is our last real chance to stop this agenda!

Related:

Turkey & Cheese? No. Pink slime? Yes!  -  The lunch police have made headlines recently, particularly when one school official actually confiscated a packed lunch they deemed unhealthy. But at the same time, the FDA has approved wide usage of a food substance called ‘pink slime’ that, as the name suggests, is allegedly not healthy. Glenn, Pat & Stu talk processed foods: as bad as people say? WATCH

Chinese Company Reportedly Selling Stamina Pills Made of Human Fetuses – Updated

Bill Gates Confirms Population Reduction Through Vaccination on CNN

Bill Gates: Register Every Birth by Cellphone To Ensure Vaccination, Control Population Growth

Hillary Clinton: Population Control Will Now Become the Centerpiece of U.S. Foreign Policy

You be the judge…

Wednesday, July 27, 2011

Soros to Quit Hedge Fund and Return to Cash Investors

Bloomberg is reporting some interesting news regarding George Soros: he’s quitting.

The outlet says that the liberal billionaire financier is dissolving the non-family aspect of his hedge fund that put him on the monetary map:

[T]he billionaire best known for breaking the Bank of England, is returning money to outside investors in his $25.5 billion firm [and is] ending a career as hedge-fund manager that spanned more than four decades.

Soros, who turns 81 next month, will hand back the money, less than $1 billion, by the end of the year, according to two people briefed on the matter. His firm will focus on managing assets solely for Soros and his family, according to a letter to investors. Keith Anderson, 51, chief investment officer since February 2008, is leaving, said the letter, signed by Soros’s sons Jonathan and Robert, who are co-deputy chairmen.

The news raises a plethora of questions — mainly, why? According to Bloomberg, the family didn’t want to adhere to SEC reporting mandates that would have forced the fund to divulge information about its investors:

Soros’s sons said they took the decision because new financial regulations would have made it necessary for the firm to register with the Securities and Exchange Commission by March 2012 if it continued to manage money for outsiders. [...]

The rule calls for hedge funds with more than $150 million in assets to report information about their investors and employees, the assets they manage, potential conflicts of interest and their activities outside of fund advising. Registered funds will also be subject to periodic inspections by the SEC.

“We have relied until now on other exemptions from registration which allowed outside shareholders whose interests aligned with those of the family investors to remain invested in Quantum,” the executives said in the letter to executives, referring to its flagship Quantum Endowment Fund. “As those other exemptions are no longer available under the new regulations, Soros Fund Management will now complete the transition to a family office that it began eleven years ago.”

Still, there are plenty more questions. Is Soros wanting to concentrate on his politically-charged donations? Why just over a year from the election? Does this mark his formal transition from businessman to political activist?

The country might be wise to remember a phrase oft-repeated by Glenn Beck: “Watch the other hand.”

Source:  The Blaze

I just finished reading Bill O’Reilly’s Pinheads and Patriots and on page 160 O’Reilly points out that George Soros gamed the U.S. elections laws by donating close to $25 Million to more than $500 political organizations, all dedicated to humiliating President George W. Bush.  I knew he had done that, just didn’t have the monetary figure.

Soros gave money to the Clinton, Obama and McCain campaigns.  Before Obama, Hillary was Soros’ girl and you can bet that they are still a team.  If you haven’t, check out: The Shadow Party

Since that time Soros has openly admitted that his goal is to destroy capitalism and the U.S. economy.  Many think he is the puppeteer behind the Obama throne.  He has visited the White House numerous times in the past 2.5 years since Obama has been the resident.

Just think… Soros is now 81-years-old, what better way to go out than my destroying the greatest country on Earth if you consider yourself a “God”. And by getting out of the hedge fund game, he will have both the time and the money.

h/t to TLA

Saturday, June 25, 2011

Trading Of Over The Counter Gold And Silver To Be Illegal Beginning July 15

In the viewpoint of several friends and fellow bloggers who are in the know, this is a precursor to seizure of gold and silver. And Zero Hedge is reporting this correctly. Terresa of the NoisyRoom found this article at Goldline.com. (Need a subscription to read the whole thing, but the title says it all). 

Goldline Report: Seizure of Gold in '33 Increases Likelihood of 21st Century Governmental Gold Bullion Heist

By David L. Ganz
Attorney and Author

"The only thing we have to fear is fear itself." With these words, Franklin Delano Roosevelt galvanized a nation in his inaugural address on March 4, 1933 as 32nd President of the United States. The nation was in dire straits as the American economy sneezed and the world caught pneumonia. Inflation was running negative as the economy failed to grow (and actually declined) for its fourth consecutive year.

M~

One small step toward Executive Order 6102 part 2, and one giant leap for ‘corrupt congressman kind’.

From: FOREX.com <info@forex.com>
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
To: xxx

Important Account Notice Re: Metals Trading

We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.

In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.

We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.

We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.

Sincerely,
The Team at FOREX.com     

So far we have only received this warning from Forex.com. We are waiting to see which other dealers inform their customers that trading gold and silver over the counter will soon be illegal.

It appears that Forex.com's interpretation of the law stems primarily from Section 742(a) of the Dodd-Frank act which "prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis."

Some prehistory from Hedge Fund Law Blog:

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Act”) has changed a number of laws in all of the securities acts including the Commodity Exchange Act.  Two specific changes deal with certain transactions in commodities on the spot market.  Specifically, Section 742 of the Act deals with retail commodity transactions.  In this section, the text of the Commodity Exchange Act is amended to include new Section 2(c)(2)(D) (dealing with retail commodity transactions) and new Section 2(c)(2)(E) (prohibiting trading in spot forex with retail investors unless the trader is subject to regulations by a Federal regulatory agency, i.e. CFTC, SEC, etc.).  According to a congressional rulemaking spreadsheet, these are effective 180 days from the date of enactment.

We provide an overview of the new sections and have reprinted them in full below.

New CEA Section 2(c)(2)(D) – Concerning Spot Commodities (Metals)

The central import of new CEA Section 2(c)(2)(D) is to broaden the CFTC’s power with respect to retail commodity transactions.  Essentially any spot commodities transaction (i.e. spot metals) will be subject to CFTC jurisdiction and rulemaking authority.  There is an exemption for commodities which are actually delivered within 28 days.  While the CFTC wanted an exemption in which commodities would need to be delivered within 2 days, various coin collectors were able to lobby congress for a longer delivery period (see here).

It is likely we will see the CFTC propose regulations under this new section and we will keep you updated on any regulatory pronouncements with respect to this new section.

New CEA Section 2(c)(2)(E) – Concerning Spot Forex

The central import of new CEA Section 2(c)(2)(E) is to regulate the spot forex markets.  While the section requires the CFTC to finalize regulations with respect to spot forex (which were proposed earlier in January), it also, interestingly, provides  oversight of the markets to other federal regulatory agencies such as the CFTC.  This means that in the future, different market participants may be subject to different regulatory regimes with respect to trading in same underlying instruments.  A Wall Street Journal article discusses the impact of this with respect to firms which engage in other activities in addition to retail forex transactions.  The CFTC’s proposed rules establish certain compliance parameters for retail forex transactions, requires registration of retail forex managers and requires such managers to pass a new regulatory exam called the Series 34 exam.  We do not yet know whether the other regulatory agencies will adopt rules similar to the CFTC or if they will write rules from scratch.

Next, from Henderson & Lyman:

The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business. This may be problematic as in most spot metals trading virtually all contracts fail to meet these requirements. As a result, although the courts’ interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a significantly negative impact on the OTC cash precious metals industry. Here too, it is essential that those who offer to be a counterparty to OTC metals transactions seek professional help to discuss possible operational and regulatory contingency plans.

The actual rule language exempts a transaction if it "results in actual delivery within 28 days or such other longer period as the Commission may determine by rule or regulation based upon the typical commercial practice in cash or spot markets for the commodity involved;" Alas, the commission has decided not to intervene and keep the exemption status window so small as to affect virtually all exchanges which transact in the gold and silver spot market.

More here:

Elimination of OTC Forex

Effective 90 days from its inception, the Dodd-Frank Act bans most retail OTC forex transactions. Section 742(c) of the Act states as follows:

…A person [which includes companies] shall not offer to, or enter into with, a person that is not an eligible contract participant, any agreement, contract, or transaction in foreign currency except pursuant to a rule or regulation of a Federal regulatory agency allowing the agreement, contract, or transaction under such terms and conditions as the Federal regulatory agency shall prescribe…

This provision will not come into effect, however, if the CFTC or another eligible federal body issues guidelines relating to the regulation of foreign currency within 90 days of its enactment. Registrants and the public are currently being encouraged by the CFTC to provide insight into how the Act should be enforced. See CFTC Rulemakings regarding OTC Derivatives located at the following website address, under Section XX – Foreign Currency (Retail Off Exchange). It is essential that OTC forex participants seek professional help to discuss possible operational and regulatory contingency plans.

Elimination of OTC Metals

As for OTC precious metals such as gold or silver, Section 742(a) of the Act prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis. This provision intends to expand the narrow so called “Zelener fix” in the Farm Bill previously ratified by congress in 2008. The Farm Bill empowered the CFTC to pursue anti-fraud actions involving rolling spot transactions and/or other leveraged forex transactions without the need to prove that they are futures contracts. The Dodd-Frank Act now expands this authority to include virtually all retail cash commodity market products that involve leverage or margin – in other words OTC precious metals.

The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business. This may be problematic as in most spot metals trading virtually all contracts fail to meet these requirements. As a result, although the courts’ interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a significantly negative impact on the OTC cash precious metals industry. Here too, it is essential that those who offer to be a counterparty to OTC metals transactions seek professional help to discuss possible operational and regulatory contingency plans.

Small Pool Exemption Eliminated

Pursuant to Section 403 of Act, the “private adviser” exemption, namely Section 203(b)(3) of the Investment Advisers Act of 1940 (“Advisers Act”), will be eliminated within one year of the Act’s effective date (July 21, 2011). Historically, many unregistered U.S. fund managers had relied on this exemption to avoid registration where they:

(1) had fewer than 15 clients in the past 12 months;

(2) do not hold themselves out generally to the public as investment advisers; and

(3) do not act as investment advisers to a registered investment company or business development company.

At present, advisers can treat the unregistered funds that they advise, rather than the investors in those funds, as their clients for purposes of this exemption. A common practice has thus evolved whereby certain advisers manage up to 14 unregistered funds without having to register under the Advisers Act. Accordingly, the removal of this exemption represents a significant shift in the regulatory landscape, as this practice will no longer be allowable in approximately one year.

Also an important consideration, the Dodd-Frank Act mandates new federal registration and regulation thresholds based on the amount of assets a manager has under management ("AUM"). Although not yet underway, it is possible that various states may enact legislation designed to create a similar registration framework for managers whose AUM fall beneath the new federal levels.

Accredited Investor Qualifications

Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals:

1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor's primary residence;

2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or

3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.

Based on this language, it is important to note that the revised accredited investor standard only applies to new investors and does not cover existing investors. However, additional subscriptions from existing investors are generally treated as requiring confirmation of continuing investor eligibility.

On July 27th, 2010, the SEC provided additional clarity regarding the valuation of an individual’s primary residence when calculating net worth. In particular, the SEC has interpreted this provision as follows:

Section 413(a) of the Dodd-Frank Act does not define the term “value,” nor does it address the treatment of mortgage and other indebtedness secured by the residence for purposes of the net worth calculation…Pending implementation of the changes to the Commission’s rules required by the Act, the related amount of indebtedness secured by the primary residence up to its fair market value may also be excluded. Indebtedness secured by the residence in excess of the value of the home should be considered a liability and deducted from the investor’s net worth.

Also, when tried to tweet this yesterday it was blocked?!?  Today it worked.

Source:  ZeroHedge