July 17, 2008
The SEC's willful negligence in not stopping the FTD/naked shorting has resulted in US markets losing crediblity. Many people know what the scam is. The good news is that this form of theft is 'end of cycle' corruption that will be stopped by the market if the regulators won't do their job.
If a short is not covered by borrowed stock then a buy order to cover should be automatic... this will stop this nefarious practice.
It's hilarious that the naked shorting of insolvent financial institutions resulted in this issue moving to front and center again... the corruption is HUGE. Chris Cox is as much a stooge as Hank Paulson is a snake oil salesman.