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Bon mots

"You can observe a lot just by watching." Yogi Berra

"We do not distain to borrow wit or wisdom from any man who is capable of lending us either." Henry Fielding, Tom Jones

"In our complex society the accountant's certificate and the lawyer's opinion can be instruments for inflicting pecuniary loss more potent than the chisel or the crowbar." United States v. Benjamin, 328 F.2d 854, 862 (2d Cir. 1964)

DTC Action Reversed and Remanded

International Power Group, Ltd., Exchange Act Rel. 66611, March 15, 2012

Depository Trust suspended clearing and settlement of International Power Group's stock. It did so because the Commission had previously brought a civil action in federal court alleging that various defendants had issued unregistered shares of International Power. Neither International Power, nor its officers or directors were defendants in that case.

The Commission ruled that it has the authority to consider  International Power's appeal of DTC's action. DTC had argued that the Commission had no jurisdiction.

The Commission also found that DTC's procedures were deficient. It remanded the the matter to the DTC and instructed that DTC should provide appropriate procedural safeguards and develop a record. It also ordered DTC to develop uniform procedures for suspensions that will be applied to future cases involving issuers.