Article: How Jim Cramer Is Approaching Bank Stocks

Article - Media, Publications

How Jim Cramer Is Approaching Bank Stocks

Katherine Ross, 21 June 2020

A report by the International Consortium of Investigative Journalists found five global banks moved “staggering sums of illicit cash for shadowy characters and criminal networks that have spread chaos and undermined democracy around the world.”

The report said that JPMorgan Chase and Deutsche Bank and other financial services companies had defied money laundering crackdowns even after being fined by U.S. authorities.

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Article: Naked Short Selling — Illegal but Hard to Prove

Article - Media, Publications

Naked Short Selling — Illegal but Hard to Prove

Gregg Greenberg, The Street, 16 July 2008

NEW YORK (TheStreet) — The Securities and Exchange Commission Chairman Christopher Cox on Tuesday said the regulator planned to crack down on naked short-selling of Fannie Mae (FNM) and Freddie Mac. Cox said in a testimony to the Senate Banking Committee on Tuesday that the agency will require short-sellers to borrow shares of the two government-sponsored mortgage giants and broker dealers including Lehman Brothers (LEH) , Goldman Sachs (GS) – Get Report, Merrill Lynch (MER) and Morgan Stanley (MS) – Get Report before selling them. The new restrictions are called for under a temporary emergency order that expires in 30 days.

For a refresher on why this is a big deal, here you go.

The traditional method for making money in the stock market is to “buy low and sell high.” But there is another way to profit called “shorting,” where the trick is to “sell high and buy low.” There are strict rules when it comes to shorting stocks, however. One way they are broken is via naked shorting.

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