April 20, 2000

Neither a Borrower Nor a Lender Be Margin trading already has a bad name in parts of the financial media, but it got another kick in the pants on Wednesday. Barry Hertz, the CEO of the small Brooklyn online brokerage Track Data, (TRAC) is $45 million in the hole to four other brokerage firms. Or $48 million, if you're reading the New York Post. Either way, he's in trouble.

It's "a stunning example of the risks of trading stocks with borrowed money," opined the Wall Street Journal. An AP report rolled its eyes at online trading in general, calling Track Data a "firm that caters to investors who disdain professional advice in favor of instant access to the markets." The only thing missing was the chance to rail on Hertz for being young  he's 50. Oh, well.

The AP quoted Track Data's director of marketing saying Hertz' personal debts wouldn't have a direct impact on the company. The Wall Street Journal disagreed, saying, "The losses incurred by Barry Hertz of Track Data Corp. could lead to the sale of the firm, because his borrowings were secured by roughly 25 million of his 45 million shares in Track Data, some of which may have to be disposed of to cover his losses." Hertz himself couldn't be reached for comment by the WSJ or AP, and the New York Post gossiped that he'd whisked himself and his family off to his native Israel.

Track Data is known for what AP called "its flood of advertising on financial news network CNBC as well as its endless streams of self-promoting press releases." The company wanted publicity, and now it's really got some.  Jen Muehlbauer

http://www.thestandard.com/article/display/0,1151,14348,00.html?nl=dnh

-- Lynn Ratcliffe (mcgrew@ntr.net), April 20, 2000

Answers

"The only thing missing was the chance to rail on Hertz for being young  he's 50. Oh, well."

so I guess he should of known better????

-- Swampthing (in@the.swamp), April 20, 2000.

I cannot believe you are still trying to "help" another in a electronic market, to gain a few more coins in the Market Place. The "Coins" do not matter. When demise comes, to us all, there is only limited space in a coffin. Space for the departed, space for the last suit of clothing, a ring on the finger, a Bible (my learned Religion), We all exit the same, in a narrow coffin, devoid of anything else. Ain't no room for your latest Auto. Think upon it.

-- Fer Some Gods (s@ke.com), April 20, 2000.