Foreign Collusion, Naked Shorting (Counterfeiting) & Money Laundering — All Illicit Wealth
Brief Chronology of SEC action on Naked Short Sales over 70 Years, 1938 – 2008
Robert Shapiro
15 September 2008
This paper highlights key SEC actions taken on Naked Short Sales.
PDF (2 pages): Brief Chronology of SEC action on Naked Short Sales over 70 Years, 1938 – 2008
Banks Fear Next Move by Shorts
Louise Story
The New York Times, 14 September 2008
In May, David Einhorn, one of the most vocal short-sellers on Wall Street, made no secret he was betting against Lehman Brothers.
Now, some investors are afraid that fund managers like him will take advantage of the climate of fear stirred up by the troubles of Lehman to target other weak financial firms whose declining share price would bring them rich rewards.
The Short Seller Myth of “Market Efficiency”
Mark Mitchell
DeepCapture, 12 September 2008
“The SEC’s public data say that on any given day over the first three months of this year, there were more than one billion shares that had been sold and failed to deliver (within the allotted 3 days) and that 70% of those fails were concentrated in just 100 companies. That’s a real red flag for the SEC that naked short selling is very widespread, is highly concentrated, and consequently might be being used today to manipulate the price of scores of stocks.”
-Former Deputy Secretary of Commerce Robert Shapiro on CNBC
It’s great that CNBC allowed someone to report this news. It seems pretty interesting – criminals manufacturing piles of phantom stock in order to systematically manipulate the share prices of perhaps 100 companies. Come to think of it, it sounds like a really big financial scandal.
Deutsche Bank Unit Hit With Record Short-Sale Fine
Law360, 10 September 2008
According to NYSE Regulation, NYSE Euronext’s enforcement arm, Deutsche Bank Securities made a significant but unquantified number of short sales without borrowing the stocks, entering an agreement to borrow the stocks or even being reasonably sure that the stocks were available to borrow. Deutsche Bank Securities also agreed to be censured.
Complaint Over Auction Rate Securities Market Details Brokers’ Greed
Courthouse News Service, 5 September 2008
In a federal filing replete with lurid examples of document destruction, inside trading, naked greed, lies and market manipulation, the City of Baltimore joins the long list of plaintiffs demanding treble damages from Citigroup, UBS, Merrill Lynch, Morgan Stanley, Bank of America, Lehman Bros., Wachovia and other banks that conspired to prop up the auction rate securities market, until it collapsed in a $300 billion rubble heap from which investors are still digging out.
THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?
