Post by kranker on Dec 4, 2005 11:51:11 GMT -4
Of Stocks and Socks: Senator Bennett Bores In On SEC's Dismal Naked Short Sales Record
March 14, 2005 (FinancialWire) When U.S. Senator Robert Bennett (R-Utah), Chief Deputy Whip for Senate Republicans, questioned U.S. Securities and Exchange Commission Chair William Donaldson this past week about a naked short selling article he read from FinancialWire, he indicated he was setting the stage for a full scale inquiry into the SEC's failure so far to halt the illegal activity.
Bennett read Donaldson the story about the man, Robert Simpson, who filed that he bought all of the stock of Global Links (OTCBB: GLKCE) and figuratively stored the stock in his sock drawer only to see millions of shares traded almost daily thereafter. Complaints about similar trades have been lodged regarding Overstock.com (NASDAQ: OSTK), Martha Stewart Living Omnimedia (NYSE: MSO) and Krispy Kreme (NYSE: KKD), to name a few.
(March 9, 2005) A video of the exchange between Bennett and Donaldson is at
banking.senate.gov/index.cfm?Fuseaction=Hearings.Detail&HearingID=140
OR
www.investrend.com/Admin/Topics/Articles/Resources/655_1110670103.ram
at the 1:19:30 mark,
Bennett questioned Donaldson in his appearance before the US Senate Committee on Banking, Housing, and Urban Affairs. The Senator chairs the committee's Subcommittee on Financial Institutions, and serves on the Subcommittee on Securities and Investment. He also serves on the Senate Small Business Committee and is Vice Chair of the Joint Economic Committee.
"This article in a national publication shows that people are still selling short," Bennett told Donaldson. "Regulation SHO is clearly not working."
He told the SEC Chair that short sales under Regulation SHO are not settled in the 13 days allowed because one broker passes off to another, and so on," inferring that this process can go on indefinitely.
Donaldson said that his staff would be glad to meet with Bennett's staff to describe what the Commission is doing to resolve these matters under Regulation SHO. The SEC Chief of Market Regulation, Annette Nazareth, in a recent interview with Floyd Norris of the New York Times (NYSE: NYT), dismissed complaints about naked short selling as "people who want their stock to go up."
Senator Bennett told Donaldson that he is raising the issue because of complaints received from his constituents back in Utah. It is not clear if Nazareth, if and when she meets with Bennett's staff, will use the same dismissive statement regarding the Senator's constituents.
Meanwhile, Robert Simpson's sock drawer may soon have a lot of folks poking around in it.
There are already disputes as to how many shares are really outstanding.
For up-to-the-minute news, features and links click on www.financialwire.net
March 14, 2005 (FinancialWire) When U.S. Senator Robert Bennett (R-Utah), Chief Deputy Whip for Senate Republicans, questioned U.S. Securities and Exchange Commission Chair William Donaldson this past week about a naked short selling article he read from FinancialWire, he indicated he was setting the stage for a full scale inquiry into the SEC's failure so far to halt the illegal activity.
Bennett read Donaldson the story about the man, Robert Simpson, who filed that he bought all of the stock of Global Links (OTCBB: GLKCE) and figuratively stored the stock in his sock drawer only to see millions of shares traded almost daily thereafter. Complaints about similar trades have been lodged regarding Overstock.com (NASDAQ: OSTK), Martha Stewart Living Omnimedia (NYSE: MSO) and Krispy Kreme (NYSE: KKD), to name a few.
(March 9, 2005) A video of the exchange between Bennett and Donaldson is at
banking.senate.gov/index.cfm?Fuseaction=Hearings.Detail&HearingID=140
OR
www.investrend.com/Admin/Topics/Articles/Resources/655_1110670103.ram
at the 1:19:30 mark,
Bennett questioned Donaldson in his appearance before the US Senate Committee on Banking, Housing, and Urban Affairs. The Senator chairs the committee's Subcommittee on Financial Institutions, and serves on the Subcommittee on Securities and Investment. He also serves on the Senate Small Business Committee and is Vice Chair of the Joint Economic Committee.
"This article in a national publication shows that people are still selling short," Bennett told Donaldson. "Regulation SHO is clearly not working."
He told the SEC Chair that short sales under Regulation SHO are not settled in the 13 days allowed because one broker passes off to another, and so on," inferring that this process can go on indefinitely.
Donaldson said that his staff would be glad to meet with Bennett's staff to describe what the Commission is doing to resolve these matters under Regulation SHO. The SEC Chief of Market Regulation, Annette Nazareth, in a recent interview with Floyd Norris of the New York Times (NYSE: NYT), dismissed complaints about naked short selling as "people who want their stock to go up."
Senator Bennett told Donaldson that he is raising the issue because of complaints received from his constituents back in Utah. It is not clear if Nazareth, if and when she meets with Bennett's staff, will use the same dismissive statement regarding the Senator's constituents.
Meanwhile, Robert Simpson's sock drawer may soon have a lot of folks poking around in it.
There are already disputes as to how many shares are really outstanding.
For up-to-the-minute news, features and links click on www.financialwire.net