July 15, 2008
I just read the press release below.
What a gigantic fraud Why "stop" the naked short selling just only for financial firms ? Why would it be possible to naked short any other firm ? Why not simply tolerate counterfeiting of money ? What's happening with America ?
Where is the respect for your own country and your money ? It's a shame Normally all counterfeiters must go to jail, idem for the naked shorters all the naked shorters
Hopefully the SEC will do his work
Reuters
SEC moves on short sellers
Tuesday July 15, 2:41 pm ET
WASHINGTON (Reuters) - The Securities and Exchange Commission will issue an emergency rule later on Tuesday to stop "naked" short selling in major financial firms, including Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News), the SEC said.
Short sellers borrow shares they consider overvalued and sell them. If the price drops, they repurchase the shares, return them and pocket the difference.
In a naked short sale, the investor sells stock that has not yet been borrowed. Sellers sometimes deliberately fail to deliver securities as part of a scheme to manipulate the stock price.
The emergency rule would require any person making a short sale in the listed securities to borrow the securities before the short sale is effected and deliver the securities on the settlement date.
The SEC has already proposed rules to curb naked short selling abuses and prevent market price manipulation.