Naked Short Selling
- Thread starter flytiger
- Start date
Najarian highlighting heavy put buying in GE. Must be the bear uncovered some more dirt in their financial holdings.
How funny. CNBC being attacked by its heroes. Another to put on your radar for monday. You can make a lot of money following these guys, and remember, they'll take them down a lot farther than you think.
I left a lot of money on the table Friday with AIG. Stupid. I know the game, and assumed they'd let up. dumb.
How funny. CNBC being attacked by its heroes. Another to put on your radar for monday. You can make a lot of money following these guys, and remember, they'll take them down a lot farther than you think.
I left a lot of money on the table Friday with AIG. Stupid. I know the game, and assumed they'd let up. dumb.
Journal talks about how the may be porking CDS's to scare out longs after the shorts are put on.
I put nothing past hedge scum. They are the same assholes that got us into this mess.
I don't see how anyone can defend any of this unless they are part of it.
This is wartime. You are either a friend or the enemy. Choose wisely.
I put nothing past hedge scum. They are the same assholes that got us into this mess.
I don't see how anyone can defend any of this unless they are part of it.
This is wartime. You are either a friend or the enemy. Choose wisely.
Like these financial institutions that are getting spanked have so much more integrity than hedge funds. There are so many examples of these same institutions shooting for the demise of others that I have no sympathy at all. If they can't hack it, they don't deserve to survive. And there is only one reason they got into this situation in the first place - overwhelming greed with no risk control.
I put nothing past hedge scum. They are the same assholes that got us into this mess.
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Those dang hedge funds went around holding a gun to the customers head. The hedge funds didn't start feeding more corn to the pigs until they saw how greedy the customers were.
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Those dang hedge funds went around holding a gun to the customers head. The hedge funds didn't start feeding more corn to the pigs until they saw how greedy the customers were.
You all should be outraged. This was supposed to happen last Thursday or Friday, and they shit the bed for the upmteenth time. Now, they come out with this. I have no sympathy for the institutions. Left to their own devices, these people who you see in tee shirts and baseball caps emptying desks would clean you out and then say , 'it's business'. Still, this cancer will spread everywhere and is good for no one in the long run.. I find it hard to believe you can't make a profit, be a Capitalist, and not fuck everyone within reach.
Source: http://www.reuters.com/articlePrint?articleId=USN1546963720080915
SEC to act on abusive short selling: source
Mon Sep 15, 2008 2:59am EDT
By Rachelle Younglai
WASHINGTON (Reuters) - U.S. securities regulators plan to take action on abusive short selling of stock before the end of the week, a source briefed on the matter said on Monday.
The measures came as Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) filed for bankruptcy protection, intensifying concerns that other major financial stocks would accelerate their losses.
The Securities and Exchange Commission will likely adopt proposals to strengthen its short-selling rule, including one that deems it fraudulent for customers to deceive broker-dealers about their intention or ability to deliver securities in time for settlement.
The SEC will also move forward with a plan that would shorten the time in which traders must buy back stock if they fail to deliver a security by the settlement date.
But the SEC will not reinstate and broaden a temporary emergency rule that required traders to preborrow stock before executing a short sale.
Two months ago, regulators were faced with similar market turmoil when IndyMac bank was seized by regulators and investors were concerned that Lehman and mortgage finance giants Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) were veering towards insolvency.
At the time, the SEC announced plans to crack down on rumor-mongering and issued an emergency rule aimed at curbing illegal naked short selling in 19 major finance stocks, including Lehman, Freddie and Fannie.
A "naked" short sale occurs when an investor sells stock that has not yet been borrowed.
Broker-dealers will sometimes accidentally fail to deliver stock to investors who have arranged to borrow it. If this is done intentionally, it is illegal.
That rule proved to be controversial, however. Broker-dealers said the requirement was onerous, companies whose stock was not on the SEC's list wanted the same protections, and short sellers complained about being targeted.
When the emergency order ended in mid-August, the SEC set about crafting rules -- which it had been expected to adopt late in September -- to be applied to all stocks.
Mortgage giants Fannie and Freddie have since been taken over by the government. Lehman has been forced to file for bankruptcy after failing to find a buyer.
(Editing by Quentin Bryar)
© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.
Source: http://www.reuters.com/articlePrint?articleId=USN1546963720080915
SEC to act on abusive short selling: source
Mon Sep 15, 2008 2:59am EDT
By Rachelle Younglai
WASHINGTON (Reuters) - U.S. securities regulators plan to take action on abusive short selling of stock before the end of the week, a source briefed on the matter said on Monday.
The measures came as Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) filed for bankruptcy protection, intensifying concerns that other major financial stocks would accelerate their losses.
The Securities and Exchange Commission will likely adopt proposals to strengthen its short-selling rule, including one that deems it fraudulent for customers to deceive broker-dealers about their intention or ability to deliver securities in time for settlement.
The SEC will also move forward with a plan that would shorten the time in which traders must buy back stock if they fail to deliver a security by the settlement date.
But the SEC will not reinstate and broaden a temporary emergency rule that required traders to preborrow stock before executing a short sale.
Two months ago, regulators were faced with similar market turmoil when IndyMac bank was seized by regulators and investors were concerned that Lehman and mortgage finance giants Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) were veering towards insolvency.
At the time, the SEC announced plans to crack down on rumor-mongering and issued an emergency rule aimed at curbing illegal naked short selling in 19 major finance stocks, including Lehman, Freddie and Fannie.
A "naked" short sale occurs when an investor sells stock that has not yet been borrowed.
Broker-dealers will sometimes accidentally fail to deliver stock to investors who have arranged to borrow it. If this is done intentionally, it is illegal.
That rule proved to be controversial, however. Broker-dealers said the requirement was onerous, companies whose stock was not on the SEC's list wanted the same protections, and short sellers complained about being targeted.
When the emergency order ended in mid-August, the SEC set about crafting rules -- which it had been expected to adopt late in September -- to be applied to all stocks.
Mortgage giants Fannie and Freddie have since been taken over by the government. Lehman has been forced to file for bankruptcy after failing to find a buyer.
(Editing by Quentin Bryar)
© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.
I find it hard to believe you can't make a profit, be a Capitalist, and not fuck everyone within reach.
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You can make a profit until one of your a/r customers files bk on you, or you get sued, or your energy costs make you realize you are wasting your time, or your wife divorces you and takes half of your business, or your employees give away the store, so on and so forth until you realize you can't stay in business unless you fuck the customers, then you quit.
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You can make a profit until one of your a/r customers files bk on you, or you get sued, or your energy costs make you realize you are wasting your time, or your wife divorces you and takes half of your business, or your employees give away the store, so on and so forth until you realize you can't stay in business unless you fuck the customers, then you quit.
How about some of you guys that fought us tooth and nail, that now have friends unemployed, that have been hurt help out? Sp;eak up. It's how you make your livings. Do you stand by and let yourself be hosed like a new inmate on Riker's Iland. Anybody that lost money in UAUA, PM me. We need some htlp to help you. You were hosed. Hose back. This asshole Cox needs to see the inside of a jail cell. But that's just me.
AP
SEC plans measures against short-selling
Monday September 15, 2:57 pm ET
By Marcy Gordon, AP Business Writer
SEC planning measures to rein in aggressive short-selling partly blamed for Lehman's demise
WASHINGTON (AP) -- With Wall Street engulfed in crisis, the Securities and Exchange Commission is planning measures to rein in aggressive forms of short-selling that were blamed in part for the demise of Lehman Brothers and which some fear could be turned against other vulnerable companies.
ADVERTISEMENT
During emergency meetings between federal officials and investment bank executives over the weekend, SEC Chairman Christopher Cox indicated to the bankers that the agency plans in a few days to impose new permanent protections against abusive "naked" short-selling, a person familiar with the matter said Monday.
Unlike the SEC's temporary emergency ban this summer covering naked short-selling in 19 stocks, the new measures would apply to trading in the broader market.
The person spoke on condition of anonymity because the SEC actions haven't yet been officially announced.
The measures likely would include removing an exception for market makers in options on stocks from rules restricting naked short-selling, and a tightening of anti-fraud rules related to that activity, according to the person familiar with the matter.
Those two measures could be put in place administratively by quick approval of the SEC commissioners. Another change, reducing from 13 to five the number of days that short-sellers would have to deliver stocks after an initial failure to do so, would require a public meeting and formal vote to propose it as a new rule.
Short sellers bet that a stock's price will fall so that they can profit from it. They borrow shares of the stock and sell them. If the price drops, they buy cheaper actual shares to cover the borrowed ones, pocketing the difference.
Naked short-selling occurs when sellers don't even borrow the shares before selling them, and then look to cover positions immediately after the sale.
Some investors contend that naked short-selling, if left unchecked, would have given hedge funds and other aggressive short sellers an unfair advantage to move on to other attack victims after Lehman Brothers Holdings Inc. Merrill Lynch & Co. -- being bought by Bank of America Corp. in a $50 billion shotgun deal -- or giant insurer American International Group Inc., which reportedly appealed to the Federal Reserve for emergency funding, were said to be among the likely targets.
New York Gov. David Paterson said Monday that AIG will be allowed to use $20 billion in assets held by its subsidiaries to provide cash needed for the company to stay in business. Paterson asked state insurance regulators to essentially allow AIG to provide a bridge loan to itself.
The investors have clamored for the SEC to institute another emergency order similar to its ban from mid-July to mid-August against naked short-selling of the stocks of mortgage finance companies Fannie Mae and Freddie Mac, and 17 large investment banks -- including Lehman and Merrill.
The SEC's temporary order required short sellers to actually borrow shares before selling them. By law, it could not be extended beyond Aug. 12.
Cox has said the order helped prevent potential "distort and short" manipulation of stocks, which occurs when rumors and misinformation are used to drive down the price of a stock that has been sold short.
AP
SEC plans measures against short-selling
Monday September 15, 2:57 pm ET
By Marcy Gordon, AP Business Writer
SEC planning measures to rein in aggressive short-selling partly blamed for Lehman's demise
WASHINGTON (AP) -- With Wall Street engulfed in crisis, the Securities and Exchange Commission is planning measures to rein in aggressive forms of short-selling that were blamed in part for the demise of Lehman Brothers and which some fear could be turned against other vulnerable companies.
ADVERTISEMENT
During emergency meetings between federal officials and investment bank executives over the weekend, SEC Chairman Christopher Cox indicated to the bankers that the agency plans in a few days to impose new permanent protections against abusive "naked" short-selling, a person familiar with the matter said Monday.
Unlike the SEC's temporary emergency ban this summer covering naked short-selling in 19 stocks, the new measures would apply to trading in the broader market.
The person spoke on condition of anonymity because the SEC actions haven't yet been officially announced.
The measures likely would include removing an exception for market makers in options on stocks from rules restricting naked short-selling, and a tightening of anti-fraud rules related to that activity, according to the person familiar with the matter.
Those two measures could be put in place administratively by quick approval of the SEC commissioners. Another change, reducing from 13 to five the number of days that short-sellers would have to deliver stocks after an initial failure to do so, would require a public meeting and formal vote to propose it as a new rule.
Short sellers bet that a stock's price will fall so that they can profit from it. They borrow shares of the stock and sell them. If the price drops, they buy cheaper actual shares to cover the borrowed ones, pocketing the difference.
Naked short-selling occurs when sellers don't even borrow the shares before selling them, and then look to cover positions immediately after the sale.
Some investors contend that naked short-selling, if left unchecked, would have given hedge funds and other aggressive short sellers an unfair advantage to move on to other attack victims after Lehman Brothers Holdings Inc. Merrill Lynch & Co. -- being bought by Bank of America Corp. in a $50 billion shotgun deal -- or giant insurer American International Group Inc., which reportedly appealed to the Federal Reserve for emergency funding, were said to be among the likely targets.
New York Gov. David Paterson said Monday that AIG will be allowed to use $20 billion in assets held by its subsidiaries to provide cash needed for the company to stay in business. Paterson asked state insurance regulators to essentially allow AIG to provide a bridge loan to itself.
The investors have clamored for the SEC to institute another emergency order similar to its ban from mid-July to mid-August against naked short-selling of the stocks of mortgage finance companies Fannie Mae and Freddie Mac, and 17 large investment banks -- including Lehman and Merrill.
The SEC's temporary order required short sellers to actually borrow shares before selling them. By law, it could not be extended beyond Aug. 12.
Cox has said the order helped prevent potential "distort and short" manipulation of stocks, which occurs when rumors and misinformation are used to drive down the price of a stock that has been sold short.
You know, I am all for naked shorting laws actually being enforced. However, I have no doubts that the stupid powers that be will in addition start enforcing the uptick rule again just because they are idiots (and because idiot Cramer says this is the root of all our problems).
So good luck to you flytiger on the naked shorting front, but put in a vote for me to let the uptick rule remain repealed.
So good luck to you flytiger on the naked shorting front, but put in a vote for me to let the uptick rule remain repealed.
Won't matter what you want or what is right. Like I've said, the greed and viciousness of the Street will kick back at them, and we'll go way to far the other way. That's why we were trying to stop this before it got nuts.
Sick part is, while they were beating my brains out, that was ok. But now, it's hitting New York. We've got to stop this!!!!!
Curshen arrested 9/4 Those indictments come from Grand Juries. Now, you'll see the arrests in the hundreds. That's what we need. Everybody finds Jesus while they await sentencing.