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OSTK ceo
- Thread starter SWScapital
- Start date
OSTK stock is not deliverable in alot of clearing firms. When the day of reckoning comes, it will be very interesting. It can and will be a problem for some major banks who have continued to ignore stock loan rules
What's really interesting, go to Vonage in Stocks thread. Look at the attitude of the posters vs. what I encountered when I first contributed to this thread. People are getting it.
Gasparino said on TV today it was Vonage fault for putting retail investors in the deal. Naked shorting was "grey area". Not sure if it was illegal. Wow.
It looks to me like the agencies said, "OK Boys, gotta stop this. We'll give you some time. Clean up your act." That was some 18mos ago. They can't stop. They won't stop.
Gasparino said on TV today it was Vonage fault for putting retail investors in the deal. Naked shorting was "grey area". Not sure if it was illegal. Wow.
It looks to me like the agencies said, "OK Boys, gotta stop this. We'll give you some time. Clean up your act." That was some 18mos ago. They can't stop. They won't stop.
It's such a shame that major banks and hedge funds - supposedly honorable people engage in shenanigans. If Vonage is overpriced let it collapse through normal market dynamics..but don't kill a company and thus ruin the lives of its employees just because you want to make some more money for your "fund" or get a higher bonus.
Frankly, people should be on the streets protesting against this madness.
Frankly, people should be on the streets protesting against this madness.
Quote from CPTrader:
It's such a shame that major banks and hedge funds - supposedly honorable people engage in shenanigans. If Vonage is overpriced let it collapse through normal market dynamics..but don't kill a company and thus ruin the lives of its employees just because you want to make some more money for your "fund" or get a higher bonus.
Frankly, people should be on the streets protesting against this madness.
Ratboy, where did this guy come from?!?!?!?!?
Thank you. I loved Stevie Cohen's hockey rink. I'd love to watch him skate. He probably buses Canuks down so his kids can watch.
And you are right. This is about jobs.
Quote from flytiger:
Ratboy, where did this guy come from?!?!?!?!?
Thank you. I loved Stevie Cohen's hockey rink. I'd love to watch him skate. He probably buses Canuks down so his kids can watch.
And you are right. This is about jobs.
i know.. i was about to write "excellent post"....... wait... maybe he is me? or you?
Short-Seller Elgindy Sentenced To More Than 11 Years
By Carol S. Remond
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- U.S. District Court Judge Raymond Dearie on Monday
sentenced short-seller Anthony Elgindy to 135 months, or more than 11 years, in
prison for his role in a scheme to manipulate the stocks of small-cap companies.
Dearie also sentenced Elgindy to forfeit $1.5 million.
Elgindy was convicted in January 2005 of racketeering, conspiracy and
securities fraud. He and four others were charged in May 2002 in U.S. District
Court for the Eastern District of New York with securities fraud, extortion and
obstruction of justice.
Federal prosecutors accused Elgindy of using confidential government
information obtained from Federal Bureau of Investigation special agent Jeffrey
Royer to manipulate stock. Royer was found guilty of racketeering conspiracy,
securities fraud and obstruction of justice.
-By Carol S. Remond, Dow Jones Newswires; 201-938-2074
By Carol S. Remond
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- U.S. District Court Judge Raymond Dearie on Monday
sentenced short-seller Anthony Elgindy to 135 months, or more than 11 years, in
prison for his role in a scheme to manipulate the stocks of small-cap companies.
Dearie also sentenced Elgindy to forfeit $1.5 million.
Elgindy was convicted in January 2005 of racketeering, conspiracy and
securities fraud. He and four others were charged in May 2002 in U.S. District
Court for the Eastern District of New York with securities fraud, extortion and
obstruction of justice.
Federal prosecutors accused Elgindy of using confidential government
information obtained from Federal Bureau of Investigation special agent Jeffrey
Royer to manipulate stock. Royer was found guilty of racketeering conspiracy,
securities fraud and obstruction of justice.
-By Carol S. Remond, Dow Jones Newswires; 201-938-2074
http://today.reuters.com/investing/...19180747_RTRIDST_0_FINANCIAL-NYSE-KETCHUM.XML
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NYSE concerned about stock offer short-selling
Mon Jun 19, 2006 6:24 PM ET
By Megan Davies
NEW YORK, June 19 (Reuters) - NYSE's head of regulation, Richard Ketchum, said on Monday he was concerned about potentially improper short-selling practices surrounding stock offerings.
Short-selling involves a bet that a company's stock will fall. Typically, an investor sells borrowed stock, and hopes to buy it back at a lower price to reimburse the lender.
"We are seeing a lot of what appear to be -- without reaching conclusions that haven't been proven -- appear to be instances where active traders are selling short before an offering and covering in the offering," Ketchum told reporters on the sidelines of the NYSE's annual regulation conference.
"That type of behavior is specifically prohibited and potentially manipulative."
Ketchum said he had not concluded that such trades were in violation of a rule, but the NYSE was looking at it and sharing its concerns with the U.S. Securities and Exchange Commission.
The NYSE is concerned with customers selling stock short before an offering and then covering using offering stock bought from a participant in the offering -- a violation of an SEC regulation called Rule 105 of Reg M.
According to the SEC's Web site, Rule 105 prohibits covering short sales with offered securities purchased from an underwriter, broker or dealer participating in the offering. The practice concerns secondary offerings, rather than initial public offerings, as there is already traded stock to short.
"The next step for us is to determine whether we go forward with enforcement action," said Susan Merrill, NYSE Regulation's head of enforcement. "In some cases, we don't have jurisdiction over the customer who was shorting but we do have jurisdiction over the broker-dealer."
Separately, Ketchum said he aimed to get an initial set of proposals on harmonizing NYSE Regulation's rules with brokerage regulator NASD to the SEC by March.
"The process may go on beyond March," he told reporters.
Ketchum and NYSE CEO John Thain have advocated eliminating the duplication that results from the two self-regulatory bodies administering separate exams to member firms.
However Thain told Reuters in May that while he continues to push for a joint venture between NYSE and the NASD regarding broker-dealer examinations, talks have stalled over disagreements about control and ownership.
Asked whether they would pursue a venture, Ketchum said the NASD and NYSE still had different views of how consolidation would occur. "I can't tell you if there will be progress or not but we are still willing to entertain it," he said.
The NYSE recently struck a deal to buy European exchange Euronext <ENXT.PA>, a deal which is being challenged by a rival offer from Frankfurt-based Deutsche Boerse <DB1Gn.DE>.
NYSE Regulation is a not-for-profit subsidiary of NYSE Group Inc. <NYX.N>, which owns the New York Stock Exchange.
--------------------------------------------------------------------------------
© Reuters 2006. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
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Print this article Close This Window
NYSE concerned about stock offer short-selling
Mon Jun 19, 2006 6:24 PM ET
By Megan Davies
NEW YORK, June 19 (Reuters) - NYSE's head of regulation, Richard Ketchum, said on Monday he was concerned about potentially improper short-selling practices surrounding stock offerings.
Short-selling involves a bet that a company's stock will fall. Typically, an investor sells borrowed stock, and hopes to buy it back at a lower price to reimburse the lender.
"We are seeing a lot of what appear to be -- without reaching conclusions that haven't been proven -- appear to be instances where active traders are selling short before an offering and covering in the offering," Ketchum told reporters on the sidelines of the NYSE's annual regulation conference.
"That type of behavior is specifically prohibited and potentially manipulative."
Ketchum said he had not concluded that such trades were in violation of a rule, but the NYSE was looking at it and sharing its concerns with the U.S. Securities and Exchange Commission.
The NYSE is concerned with customers selling stock short before an offering and then covering using offering stock bought from a participant in the offering -- a violation of an SEC regulation called Rule 105 of Reg M.
According to the SEC's Web site, Rule 105 prohibits covering short sales with offered securities purchased from an underwriter, broker or dealer participating in the offering. The practice concerns secondary offerings, rather than initial public offerings, as there is already traded stock to short.
"The next step for us is to determine whether we go forward with enforcement action," said Susan Merrill, NYSE Regulation's head of enforcement. "In some cases, we don't have jurisdiction over the customer who was shorting but we do have jurisdiction over the broker-dealer."
Separately, Ketchum said he aimed to get an initial set of proposals on harmonizing NYSE Regulation's rules with brokerage regulator NASD to the SEC by March.
"The process may go on beyond March," he told reporters.
Ketchum and NYSE CEO John Thain have advocated eliminating the duplication that results from the two self-regulatory bodies administering separate exams to member firms.
However Thain told Reuters in May that while he continues to push for a joint venture between NYSE and the NASD regarding broker-dealer examinations, talks have stalled over disagreements about control and ownership.
Asked whether they would pursue a venture, Ketchum said the NASD and NYSE still had different views of how consolidation would occur. "I can't tell you if there will be progress or not but we are still willing to entertain it," he said.
The NYSE recently struck a deal to buy European exchange Euronext <ENXT.PA>, a deal which is being challenged by a rival offer from Frankfurt-based Deutsche Boerse <DB1Gn.DE>.
NYSE Regulation is a not-for-profit subsidiary of NYSE Group Inc. <NYX.N>, which owns the New York Stock Exchange.
--------------------------------------------------------------------------------
© Reuters 2006. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
Close This Window