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It came as no surprise to William to discover from Thaddeus Cohen the next day that the coinal three million dollars worth of Interstate shares was one of those fronting for Abel Rosnovski, Guaranty Investment Corporation by name A corporation spokes their reasons for selling, they had been concerned for the future of the Coovernment’s responsible state facilities
’Responsible stateovernment hasn’t made a responsible statement since they claimed Speedy Gonzales would win the one hundred metres at the Helsinki Olympics’
The media made the most of Guaranty Investment’s press release, and on Friday, the Federal Aviation Agency grounded the airline until it could conduct an in - depth investigation of its servicing facilities
Willia to fear from such an inspection, but the action proved disastrous for the short - ters No aviation coround; they can only make money when they are in the air
To compound William’s problems, otherfuture comrnitments The press had been quick to point out that Lester’s was Interstate Ainvays’ underwriters
Surprisingly, Inter - state’s shares began to pick up again late Friday afternoon, and it did not take Williauess that was later confirmed’by Thaddeus Cohen : the buyer was Abel Rosnovski He had sold his Interstate shares at the top and was now buying them back in small amounts while they were at the botto ad a s William both in reputation and financial terh the Baron Group ht well end up e profit
Moreover, it was evident that Rosnovski was unconcerned about a temporary loss, which he could in any case use as a tax write - off; his only interest was in the total destruction of Lester’s reputation
When the board met on Monday, William explained the entire history of his clash with Rosnovski and offered his resignation It was not accepted, nor was a vote taken, but there were ain, his colleagues ht not take the tolerant attitude a second time
The board went on to consider whether they should continue the support for Interstate Airways Tony Simmons convinced them that the FAA’s enquiry would come out in the bank’s favour, and that Interstate would in time recover all theirthat their decision could only help Rosnovski in the long run, but the bank had no choice if it wished to protect its reputation
He proved right on both counts When the SEC finally published its findings, they declared Lester’s ’reproachproof’ although they had some stem words for Guaranty Invest in Interstate shares thatsteadily It was soon back up to its original four and a half
Thaddeus Cohen inforain Abel Rosnovski
’That’s all I need at the e profit on the whole transaction, but now he can repeat the saain whenever the time suits him’
’In fact,’ said Thaddeus Cohen, ’that is exactly what you do need’
’Whatever do you mean, Thaddeus?’ said William ’I’ve never known you speak in riddles!
’Mr Abel Rosnovski hasthe law and now it’s your turn to go after him He probably doesn’t even realise that what he was involved in was illegal, becaues he was doing it for all the wrong reasons!
’What are you talking about?’ asked William
’Siion with Rosnovski - and his with you - it seems that ’ both of you have overlooked the obvious: if you sell shares with the sole intention of causing the market to drop in order to pick up those same shares at the botto Rule I Ob - 5 of the Securities and Exchange Co the cri a quick profit was not Mr Rosnovski’s original intention; in fact, we know very well he only wanted to e to believe Rosnovski if he gives as an explanation that he duht the coht all the same shares back when they reached rock bottom? Answer: nobody - and certainly not the SEC IT have a full written report sent around to you by toal implications’