SEC Issues New Rules to Protect Investors Against Naked Short Selling Abuses
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling.
“These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling,” said SEC Chairman Christopher Cox.
“The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation.”
For this reason, naked shorting can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions.
Now that the SEC seems to recognize, and promises to do something about Naked Shorting, what about the shareholders of all the companies that were shorted into oblivion, using this illegal, abusive, manipulative practice...??
A practice which was IGNORED for years, and whose existence was DENIED by the regulatory agencies responsible for protecting shareholders.
NOTE: Please send a copy of the Press Release to Annette Nazareth...!!
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This Just In...
"Goldman Sachs Group Inc. and Morgan Stanley, the remaining independent securities firms on Wall Street, plunged by the most ever, prompting Morgan Stanley Chief Executive Officer John Mack to say short sellers are using abusive tactics to attack companies."
Editors Note - I think they just want their stocks to go up...!!
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SEC Contact Info...
coxc@sec.gov,
chairmanoffice@sec.gov,
tradingandmarkets@sec.gov,
oig@sec.gov,
newyork@sec.gov,
losangeles@sec.gov,
enforcement@sec.gov,
oiea@sec.gov,
publicinfo@sec.gov,
help@sec.gov,
mccoyj@sec.gov,
whitem@sec.gov,
hakalal@sec.gov,
tysonr@sec.gov,
thomsenl@sec.gov
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2 comments:
2005...
On or about the same time, the DTCC had castigated EuroMoney after a March, 2005 article on illegal naked short selling quoted then U.S. Securities and Exchange Commission Head of Market Regulation Annette Nazareth’s assistant, James Brigagliano that prior lawbreakers were “grandfathered” because “we were concerned about generating volatility where there were large pre-existing open positions, and we wanted to start afresh with new regulation, not re-write history.”
Nazareth, now an SEC Commissioner, had previously told the New York Times that naked short selling amounted to no more than complaining shareholders “who want their stock to go up.”
Annette Nazareth, who is currently the director of market regulation at the SEC was recently quoted in the New York Times stating that threshold companies and shareholders who complained about their stock being manipulated in the light of illegal naked short sales were just annoyed because they wanted their "stocks to go up."
She elaborated by claiming that investors should not have the attitude of believing that there is a "criminal conspiracy when stocks move the wrong way, and the government should do something about it."
A new staff recommendation by Annette Nazareth, director of the division of market regulation at the U.S. Securities and Exchange Commission to "outlaw" ownership of paper certificates at the same time the Depository Trust and Clearing Corporation is under intense scrutiny for alleged electronic counterfeiting has begun hitting the small public company markets, company executives, shareholders and manipulative short-selling opponents like the proverbial ton of bricks.
In comments to the U.S. Securities and Exchange Commission, C. Austin Burrell, who is providing litigation support and research for the law firms, said that StockGate is more massive than anyone may have imagined. "Illegal Naked Short Selling has stripped hundreds of billions, if not TRILLIONS, of dollars from American investors," and have resulted in over 7,000 public companies having been "shorted out of existence over the past six years." Burrell said some experts believe as much as $1 trillion to $3 trillion has been lost to this practice.
The Stock Borrow Program was purportedly set up to facilitate expedited clearance of stock trades. Somewhere along the line, the DTCC became aware that if it could lend a single share an unlimited number of times, it could collect a fee each time, according to Burrell. "There are numerous cases of a single share being lent ten or many more times," giving rise to the complaint that the DTCC has been electronically counterfeiting just as was done via printed certificates before the Crash.
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