Post by jcline on Dec 11, 2005 20:25:39 GMT -4
www.faulkingtruth.com/Articles/Investing101/1045.html
Stockgate: It's Money that Matters
By Mark Faulk
Dec. 11, 2005
Let's get straight to the point here: hedge funds are destroying America. By operating in complete secrecy, they have been able to "reward" their largely ultra-rich clientele by manipulating the stock market for decades through the use of naked short selling and stock counterfeiting, at the expense of the average investor. While millions of Americans have watched helplessly as they have been robbed blind for years and years, the rich continue to get richer.
Hedge funds are destroying America, and they're being aided and abetted by Wall Street, the major brokerage firms, the SEC, and Congress. And now that the SEC is finally trying to introduce even tepid regulations to this largely unregulated industry, they are looking for allies in the federal courts as well. In a lawsuit filed by Phillip Goldstein, a hedge fund adviser from Pleasantville, N.Y., Opportunity Partners, a hedge fund partnership; and its general partner, Kimball & Winthrop, federal appeals judges have already begun to side with the hedge fund industry in their battle to continue to operate in complete secrecy.
The hedge funds are maintaining that the SEC has no authority to regulate the hedge fund industry, and, as an article in the New York Times put it last Friday, "that only Congress, where the hedge fund business has more allies than the commission, may make the changes that the agency is planning to impose."
Allies in Congress? What happened to the posturing and gesturing of a few months ago by members of the Senate Banking Committee, who promised to take on the issue of stock market reform by addressing the massive scandal involving stock counterfeiting through naked short selling? Since Banking Committee Chairman Senator Richard Shelby(R-AL) killed a planned Banking Subcommittee hearing in September, there has been absolutely no action by Congress to protect the American investor.
Even if the SEC manages to enact their new regulations in February of 2006, all they will have succeeded in doing is closing one loophole, while opening several more. The new restrictions will require that any hedge fund with more than 14 American clients will have to register with the SEC and be subject to the same disclosure requirements that all other mutual funds have had to follow for the past 65 years.
To read the rest of this article, go to:
www.faulkingtruth.com/Articles/Investing101/1045.html
Stockgate: It's Money that Matters
By Mark Faulk
Dec. 11, 2005
Let's get straight to the point here: hedge funds are destroying America. By operating in complete secrecy, they have been able to "reward" their largely ultra-rich clientele by manipulating the stock market for decades through the use of naked short selling and stock counterfeiting, at the expense of the average investor. While millions of Americans have watched helplessly as they have been robbed blind for years and years, the rich continue to get richer.
Hedge funds are destroying America, and they're being aided and abetted by Wall Street, the major brokerage firms, the SEC, and Congress. And now that the SEC is finally trying to introduce even tepid regulations to this largely unregulated industry, they are looking for allies in the federal courts as well. In a lawsuit filed by Phillip Goldstein, a hedge fund adviser from Pleasantville, N.Y., Opportunity Partners, a hedge fund partnership; and its general partner, Kimball & Winthrop, federal appeals judges have already begun to side with the hedge fund industry in their battle to continue to operate in complete secrecy.
The hedge funds are maintaining that the SEC has no authority to regulate the hedge fund industry, and, as an article in the New York Times put it last Friday, "that only Congress, where the hedge fund business has more allies than the commission, may make the changes that the agency is planning to impose."
Allies in Congress? What happened to the posturing and gesturing of a few months ago by members of the Senate Banking Committee, who promised to take on the issue of stock market reform by addressing the massive scandal involving stock counterfeiting through naked short selling? Since Banking Committee Chairman Senator Richard Shelby(R-AL) killed a planned Banking Subcommittee hearing in September, there has been absolutely no action by Congress to protect the American investor.
Even if the SEC manages to enact their new regulations in February of 2006, all they will have succeeded in doing is closing one loophole, while opening several more. The new restrictions will require that any hedge fund with more than 14 American clients will have to register with the SEC and be subject to the same disclosure requirements that all other mutual funds have had to follow for the past 65 years.
To read the rest of this article, go to:
www.faulkingtruth.com/Articles/Investing101/1045.html