Post by kranker on Dec 4, 2005 11:55:28 GMT -4
Here's the infamous SEC regulation SHO webcast from June 23, 2004.
www.connectlive.com/events/secopenmeetings/sec-062304-archive.asx
You need only listen to the first 35 minutes relating to short sales.
Regulation SHO contains two separate initiatives:
1. Protection from illegal and abusive naked short selling (stock counterfeiting). This is the part we are interested in.
2. A Russell 3000 pilot program where short selling restrictions are ACTUALLY LIFTED, RELAXED! for one year to observe the effect on the pilot segment of stocks that have short selling restrictions lifted. This part of SHO does not address Illegal naked short selling (counterfeiting of stock). It appears to be a concession that the SEC gave to Wall Street so Wall St. would "allow" the SEC to enact the other part of SHO.
Do not forget where many SEC workers end up after they leave the SEC, at an SRO or other Wall St firm.
Please keep the above, two separate and distinct parts of SHO, in mind throughout.
In the recording, please note the smoke screen offered to mask the real debacle at hand, that being naked short selling and short selling manipulative practices. The smoke screen being offered is the 1 year pilot program whereby a segment of the Russell 3000 will be "closely monitored" as modified rules for the short selling price test are considered. How would you like to be one of those companies "selected" to take part in this useless pilot which relaxes short selling rules?
Is this Russell 3000 pilot so important as to cause the further delay of much needed rule making and enforcement of illegal market manipulations of Naked Short Sellers in the OTC and Pinks? How many naked short positions do you think have excessive open failures to deliver on the highly regulated and enforced Russell 3000 index? Who really cares about this when the OTC and Pink companies are being robbed to death on a daily basis?
This is an amateur smokescreen befitting the reputation of the SEC to ignore the real problems facing individual investors.
In my opinion, the SEC has chosen to take this action of offering up their latest smokescreen in response to the outcry from thousands of investors with respect to naked short selling and abusive practices by market makers and hedge funds perpetuating this criminal activity.
The SEC has completely missed the boat again and offers this Russell 3000 pilot smokescreen in response to their superiors (the legislators, our elected officials) demanding action from the apparently incompetent, misguided and/or corrupt ignorance of the SEC to crack down on Naked Short Selling.
With the majority of our elected officials likely knowing less than us about naked short selling, they will take this smoke screen rule making as positive response action to their demands (our demands) to STOP MANIPULATIVE AND CORRUPT NAKED SHORT SELLING. They will not know any better that they, the legislators, have been taken for fools once again as this legislation does nothing to address the real problems and concerns of their constituents.
Yes, there are short sales rules portrayed to enact new protections for the OTC and Pinks, but even a novice will notice these new rules are for show purposes only as the committee brags on about their off-topic Russell 3000 pilot program for most of the presentation.
The presenters in this webcast are wet behind the ears, which is exactly what the SEC needs to enable their minions to promote useless legislation which misses the point completely. The point being Naked Short Selling.
Annette Nazareth plays her role of Princess to and spokesperson of the minions by offering up their research with praise. She gets squeezed a few times but as you will hear, the Commissioners have no teeth when pretending to question the validity of her proposal with respect to Naked Short Selling.
Notice a few of the commissioners apparently driving right up the edge of the cliff with their concerns about naked short selling (remember, our elected officials have been hammering the SEC because we poor people have been calling more and more frequently over the years). Just when a commissioner is about to get to the bottom of it all, a minion chimes in and responds to the Commissioners naked short selling concerns with a totally useless rebuttal which the commissioner gladly accepts. Is this a way for the commissioners to go on record for being concerned about Naked Short Selling while still having to do nothing about it? You betcha!
If they were concerned and competent in their position, they would slap down the minions and make effective legislation AND enforcement happen that STOPS stock counterfeiting by Stock Market Operators. This leads me to only one conclusion, that being of corruption at the highest levels.
Just to keep the webcast listening experience consistent with the rule making and enforcement of Reg SHO, the audio quality is terrible. Amateur at best.
All in my opinion, of course.
Enjoy
-kranker
www.connectlive.com/events/secopenmeetings/sec-062304-archive.asx
www.connectlive.com/events/secopenmeetings/sec-062304-archive.asx
You need only listen to the first 35 minutes relating to short sales.
Regulation SHO contains two separate initiatives:
1. Protection from illegal and abusive naked short selling (stock counterfeiting). This is the part we are interested in.
2. A Russell 3000 pilot program where short selling restrictions are ACTUALLY LIFTED, RELAXED! for one year to observe the effect on the pilot segment of stocks that have short selling restrictions lifted. This part of SHO does not address Illegal naked short selling (counterfeiting of stock). It appears to be a concession that the SEC gave to Wall Street so Wall St. would "allow" the SEC to enact the other part of SHO.
Do not forget where many SEC workers end up after they leave the SEC, at an SRO or other Wall St firm.
Please keep the above, two separate and distinct parts of SHO, in mind throughout.
In the recording, please note the smoke screen offered to mask the real debacle at hand, that being naked short selling and short selling manipulative practices. The smoke screen being offered is the 1 year pilot program whereby a segment of the Russell 3000 will be "closely monitored" as modified rules for the short selling price test are considered. How would you like to be one of those companies "selected" to take part in this useless pilot which relaxes short selling rules?
Is this Russell 3000 pilot so important as to cause the further delay of much needed rule making and enforcement of illegal market manipulations of Naked Short Sellers in the OTC and Pinks? How many naked short positions do you think have excessive open failures to deliver on the highly regulated and enforced Russell 3000 index? Who really cares about this when the OTC and Pink companies are being robbed to death on a daily basis?
This is an amateur smokescreen befitting the reputation of the SEC to ignore the real problems facing individual investors.
In my opinion, the SEC has chosen to take this action of offering up their latest smokescreen in response to the outcry from thousands of investors with respect to naked short selling and abusive practices by market makers and hedge funds perpetuating this criminal activity.
The SEC has completely missed the boat again and offers this Russell 3000 pilot smokescreen in response to their superiors (the legislators, our elected officials) demanding action from the apparently incompetent, misguided and/or corrupt ignorance of the SEC to crack down on Naked Short Selling.
With the majority of our elected officials likely knowing less than us about naked short selling, they will take this smoke screen rule making as positive response action to their demands (our demands) to STOP MANIPULATIVE AND CORRUPT NAKED SHORT SELLING. They will not know any better that they, the legislators, have been taken for fools once again as this legislation does nothing to address the real problems and concerns of their constituents.
Yes, there are short sales rules portrayed to enact new protections for the OTC and Pinks, but even a novice will notice these new rules are for show purposes only as the committee brags on about their off-topic Russell 3000 pilot program for most of the presentation.
The presenters in this webcast are wet behind the ears, which is exactly what the SEC needs to enable their minions to promote useless legislation which misses the point completely. The point being Naked Short Selling.
Annette Nazareth plays her role of Princess to and spokesperson of the minions by offering up their research with praise. She gets squeezed a few times but as you will hear, the Commissioners have no teeth when pretending to question the validity of her proposal with respect to Naked Short Selling.
Notice a few of the commissioners apparently driving right up the edge of the cliff with their concerns about naked short selling (remember, our elected officials have been hammering the SEC because we poor people have been calling more and more frequently over the years). Just when a commissioner is about to get to the bottom of it all, a minion chimes in and responds to the Commissioners naked short selling concerns with a totally useless rebuttal which the commissioner gladly accepts. Is this a way for the commissioners to go on record for being concerned about Naked Short Selling while still having to do nothing about it? You betcha!
If they were concerned and competent in their position, they would slap down the minions and make effective legislation AND enforcement happen that STOPS stock counterfeiting by Stock Market Operators. This leads me to only one conclusion, that being of corruption at the highest levels.
Just to keep the webcast listening experience consistent with the rule making and enforcement of Reg SHO, the audio quality is terrible. Amateur at best.
All in my opinion, of course.
Enjoy
-kranker
www.connectlive.com/events/secopenmeetings/sec-062304-archive.asx