Bloomberg Report on naked shorting

[cos1000]

Interesting video to go with my full disclosure arguement. Interesting they mention Ergen and Apollo group, was about to make a longer, fascinating point, and watch him be interrupted by the fat, angry, jerk of an SOB.
http://www.cnbc.com/id/15840232?video=1066940681&play=1

Great video, and I guess the fat SOB is buying debt that he doesn't want to report.... great point was being make by Garabelli that Appollo has to report their 5% ownership in shares but, debt holders like Ergin secretly buying up company control through owning debt don't have to report...

[sl62]

relmor, in my statement of the SEC not having the Will or Resources I mean that they won't do what is necessary... They are a highly politicized division of government that was put into effect during the last depression to create the Illusion of transparency, and to have investors beleive the government was leveling the playing field.... Their hasn't been any major reform since then. All of the suggestions in the world won't get them to enforce existing laws, let alone generate new ones, not to mention that any changes will go to their rules committee and never come out.

Even reinstating an already once existing Uptick Rule will not be meaningful unless accompanied by some % or set Uptick Value, such as a 1/8, .125 cents, or even 1/16, .0625 cents. Without some value assigned, the uptick will be a joke especially for those stocks that trade to 4 decimal places. Keeping the SEC as the responsible agency for enforcement, while trying to maintain the guidelines for reporting of publicly traded companies, monitoring exchanges for proper trade executions, and educating the public and businesses on how to report, is just not realistic. They need to be able to pass off and support the DOJ and FBI in their investigations and eventual procecutions of wrong doers, while maintaining their status as a Commision that establishies the rules and educates the public and businesses on how to comply, and then monitors compliance passing off violators to the DOJ or other Law Enforcement agency as necessary.

Rel, cos1000...

As said up there a piece, I applaud anyone who wants to try to bring about reform, but you might as well try to reform our politcal process..not much difference in the undertaking. So I would never discourage anyone frm their activism. But my opinion is streadfast in that the SEC is in no position to be reorging the way Wall Street trades. And cos1000 is right. The reason the uptick was discontinued was because decimals shortened the wider spreads that fractions produced. Now as said, I think it's better to bring it back than not because even if it helps some here and there, it's worth having. Or even as a psychologocal effect for some. Again better having it in the main house in plain sight than out in the garage underneath a pile of junk. Certainly won't hurt anything. But as far as the naked shorts go, does anyone really think MM's will have to observe uptick?? I don't. They will be able to continue their own naked shorting because everyone knows it is a tool in their tool box...given to them by the SEC. That's what we have to keep in mind. There is a lot of ta-doo going around right now about MM's and their manipulative ways. Don't forget, these are the guys who MAKE THE MARKET. In a sense, they are sanctioned as a group almost as a proxy for the SEC. If not them, who exactly would route billions of trades per day? Enabling all of us to make trades in the first place. It's a very complex undertaking and I think MM's have been given powers by the SEC that are not in favor of the common investor. But also remember, the common peon is not supposed to make money in the market. That's why we have just been raped of Trillions in wealth diestruction of the middle class. This control over wealth is done in the market and it's accepted by the powers that be (including the SEC) that this is de rigeur. So as far as them reforming manipulation of MM's, I wouldn't count on it since they (government) actually count on that upper hand to keep us at bay. I say, use the battlefield. If you figure out how they work, which we do, then you adjust your strategies to be in sync with what they are doing. If you really want reform, you better have some important heavyweight lobbyists, senators, and activists in your camp. IMVHO...

[Paratrooper_Rick]

http://www.bloomberg.com/apps/news?p...TCA&refer=home

This is a must read! Very long, so grab that cup of coffee first!

Ok - getting my coffee - thanks for posting this.... will throw in my 2 cents once i'm through it..

[Paratrooper_Rick]

If this doesn't spell it out in big neon bold faced letters dripping with blood -

Nothing will:

The daily average value of fails-to-deliver surged to $7.4 billion in 2007 from $838.5 million in 1995, according to a study by Trimbath, who examined data from the annual reports of the National Securities Clearing Corp., a subsidiary of the Depository Trust & Clearing Corp.

Also:

Trimbath attributes the almost ninefold growth in the value of failed trades from 1995 to 2007 to a rise in naked short sales.

ok and this is just plain political double talk:

While the correlation doesn’t prove that naked shorting caused the lower prices, it’s “a good first indicator of a statistical relationship between two variables,” she said.

WHAT!! Of course it caused the lower prices ..... Are they kidding me...

Good reading - thanks again for posting it...

[bananaz]

People have been writing to the SEC long before the financial melt down regarding naked short selling.Overstock.com was another example of naked short selling and the SEC does nothing.
Until enforcement is put under the Dept of Justice nothing will change.Once people go to jail, others get the point.
imho
vaporgold

Does the DOJ need permission from someone like the SEC to pursue these guys? After all, isn't naked shorting considered theft of some sort, and couldn't systematic, coordinated naked shorting be prosecuted under RICO statues? From where would criminal complaints have to originate?

[Joeboo1]

Brandon,good morning to byou and all..excellent report,but i doubt as you can see in their conclusions itis known,talked about and reaction is So WHAT!!
The Gaul of the bastards........Good start for shining light for retail investors
to see what the Stock market really is,LEGAL BOOKIES !!!!!!!

I don't think we should disparage Bookies by comparing them to these guys. A bookie hopes just as many win that lose. They just want their 10 percent "Juice" or commision. If these guys were bookies they would be in the Superbowl locker rooms with a lead pipe.

[Joeboo1]

Does the DOJ need permission from someone like the SEC to pursue these guys? After all, isn't naked shorting considered theft of some sort, and couldn't systematic, coordinated naked shorting be prosecuted under RICO statues? From where would criminal complaints have to originate?

I don't think the average retail investor will have faith in the market until they bring out the pretty orange jumpsuits and start locking these guys up. Whats funny is that RICO was created to stop just this sort of thing. Instead its being used to nab the 10 Yayhoo's that set up a pot selling ring.