Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (371)	10/8/2005 9:11:12 AM
From: rrufff	Read Replies (1) \| Respond to of 5034

BWAC - you have it right there. We have the technology available to have fair and honest markets, with information on trading equally available to all, not just the moneyed interests. I'm going to post next an article about the SEC going after a hedge fund that apparently "concealed" $230 million in losses. (Thanks to TS for finding the article.) I've often been critical of the SEC and its inability or lack of will. But you have to hand it to them on this one. Perhaps, Hedge funds have grown to such an extent that the moneyed interests in Washington now realize that they have become more of a liability than just a potential generator of political donations. The magnitude of the problem is clear. You have $44 billion in assets in Man Group. Hiding "only" $230 million in losses. That's about 1/2 of 1%. They figured they'd never get caught. I can only imagine how difficult it was to discover this fraud and then the next step of taking either civil or criminal action. As with most fraud "stories," this is likely the tip of a very much bigger iceberg. Clearly, our politicians have to fund the SEC to the extent that it can effectively ferret out fraud, not just go for the case that makes headlines, e.g., Martha Stewart, the latter of which wasted an incredible amount of resources, but which sent a message to the investment community. Those who think they can "get away" with it, realize that the paper tiger regulators, from the IRS to the SEC, don't have the resources to catch the thieves. Scaring us, the public, the little people, into full compliance is about the best they can do.