July 30, 2008
My impression is that naked short-selling is against regulations at all times.
I have been monitoring the Ultra-Short Financials vs. the IShares Regional Bks and it is obvious that this practice is detrimental to all investors in banking stocks and that they should be protected under the law.
Historically, Regional Banks have not been volatile, but because of this unlawful practice, they have been trading on the downside sometimes 3-4 times their average volume.
Just like our strategic reserves, banks, the underpinning of our economy, should be protected under the law.
I would hope that the SEC would be closely monitoring the trading in the banks and would protect them.