SEC Under Pressure! Manipulators Running Scared!

Sen. Kaufman was joined by Sen. Johnny Isakson (R-GA) in introducing the legislation, which directs the SEC to write regulations within 60 days that accomplishes five things to end abusive short selling:

(1) reinstate the substance of the uptick rule that prohibited short sales that are not made on an increase in the price of the stock; this prevents short sellers from piling on a declining stock, driving prices down.

(2) require exchanges and other trading venues to execute the trades of long sellers ahead of short sellers, all other things being equal.

(3) with the concurrence of the Secretary of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System, prohibit short sales of the securities of any financial institution unless that trade is affected at a price (in minimum lots specified by the Commission) at least 5¢ higher than the immediately preceding transaction in such securities. Our financial sector, and financial stocks, are in a fragile state – and our taxpayers now hold substantial shares of many institutions. If the Treasury and Fed believe they need additional protection in these times, this legislation permits it.

(4) prohibit any person from selling securities short unless that person has at the time of the short sale a demonstrable legally enforceable right to deliver the securities at the required delivery date. Under current law, many short sellers fail to deliver – we must tighten up the rules.

(5) require that all short sales settle on the same time frame employed for long sales of the same securities. There is no reason short sellers should have 13 days to deliver shares when long sellers have only three days.

It's about #$%^ing time these politicians do something that benefits gneral public instead of big money.
Excellent work Brandon.. Keep sniffing around for these morale boosting stories.

This is truly wonderful news and I hope it keeps coming. Keep up the good work!

Its a Bipartisan effort that will end the shorts advantage. Over 90% of all nasdaq stocks were up today. The shorts are covering now becasue we are bringing the heat down on them. As this thing grows legs, the markets will run. Shorts are scrambling to close their positions. None want to be outed. Still another bill asks that the SEC divulge the names of large short sellers just as it discloses institutional ownership.

http://kaufman.senate.gov/press/pres...1-B3CB2F1AA230

http://www.sec.gov/comments/s7-31-08/s73108-64.htm

Brandon,

Excellent work. Thanks for the information.

Awesome work Brandon! Can't help but wonder if the Senators saw the vid of Cramer's youtube debut! Whatever it was - anything to flatten the playing field!! Cheers Mate!!

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Originally Posted by RickF

Awesome work Brandon! Can't help but wonder if the Senators saw the vid of Cramer's youtube debut! Whatever it was - anything to flatten the playing field!! Cheers Mate!!

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I do believe several government folks have come across the video!

Good work Brandon!

I hope some of those manipulative short bastards end up wearing orange or striped suits breaking very big rocks into very very small ones.....

Not that I'm bitter.... I hate cheating idiots who live off the pain or failure of others.... they're worse than lawyers.......

That's my new joke..... if you could name one thing in the world worse than a lawyer what would it be?...... a naked short seller.....

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Originally Posted by Paratrooper_Rick

I hope some of those manipulative short bastards end up wearing orange or striped suits breaking very big rocks into very very small ones.....

Not that I'm bitter.... I hate cheating idiots who live off the pain or failure of others.... they're worse than lawyers.......

That's my new joke..... if you could name one thing in the world worse than a lawyer what would it be?...... a naked short seller.....

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I echo that sentiment!

Hey don't forget the dregs of the market who are actually stupid enough to lend out their shares so they can be unmercilessly shorted,don't understand that at all...

Great article Brandon,good stuff....

It is about time!!!!!!!!!!!! now get rid ofthe SEC and turn it over to the Dept of Justice to oversee.
imho
vaporgold

Brandon: Once again tremendous post, keep up the great work! I'm no fan of short selling although I understand its role in the market place, my God isn't Sirius a text book case of why all the rules should be changed if only to "keep it fair"; someday what went on with this merger and its aftermath will be in every casebook in every business school.

Hopefully we can talk about SiriusXM marketing soon now that the threat of Bk is over.

I liked other suggestions that I heard (I dont remember where else, perhaps Deep Capture?)
1) If an outside entity takes a position in a company greater than 5%, they have to disclose that information. The short sells should have to declare this information as well.

2) Each Mutual Fund is required to file a prospectus with the SEC at least quarterly, giving the results of their trades, as well as identifying their biggest holdings. Hedge Funds should have to do the same.

3) If a public company has authorized a share buyback, it must follow certain rules. It must conduct it's buyback during mid-day trading, as to not influence the price of the stock either way. It also must purchase shares on the open market on a down tick, as to not force the price upwards. So why are short sellers not required to follow the opposite rules? (uptick rule, and time restrictions).

That is all I can remember right now. But this is definately a good step in the right direction.

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Originally Posted by Newman

I liked other suggestions that I heard (I dont remember where else, perhaps Deep Capture?)
1) If an outside entity takes a position in a company greater than 5%, they have to disclose that information. The short sells should have to declare this information as well.

2) Each Mutual Fund is required to file a prospectus with the SEC at least quarterly, giving the results of their trades, as well as identifying their biggest holdings. Hedge Funds should have to do the same.

3) If a public company has authorized a share buyback, it must follow certain rules. It must conduct it's buyback during mid-day trading, as to not influence the price of the stock either way. It also must purchase shares on the open market on a down tick, as to not force the price upwards. So why are short sellers not required to follow the opposite rules? (uptick rule, and time restrictions).

That is all I can remember right now. But this is definately a good step in the right direction.

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I just wrote up an article after letting everyone here in on it first. Newman, even plugged your article from that very topic...

I went to the Senator's website and sent him a note thanking him for his efforts. We should all consider doing it.