Senate Judiciary Committee To Hold Hearing on Hedge Funds, "Independent" Analysts, and Short Selling
Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 6/13/2006 7:14 PM
I've used a saying on the Yahoo boards for about a year and a half now, which drives the bashers there crazy.
I kind of like that, as I suspect that many of them are associated with stock manipulating hedge funds, or prime brokers trading alongside the manipulating funds - and anything that drives them nuts is a positive, in my book.
The saying is, "This time it's different."
Today, the United States Senate Committee on the Judiciary announced that it is going to hold a hearing next week focused on hedge funds, "independent" analysts, and short selling.
That sounds an awful lot like an exploration into the Biovail vs. SAC and Gradient suit, as well as the Overstock vs. Rocker Partners and Gradient suit - and further, into the scheme which I outlined in some detail on the OSTK CC a year and a half ago, and have detailed in a number of blogs.
All I can say is, it's about time.
I have stood by in rapt amazement as target after target of a cartel of short sellers, acting in concert with a few bad apple journalists, captive "research" firms, class action attorneys, and even personnel at the regulators, get demolished in a very systematic manner - and everyone pretends they can't spot the pattern.
Here's the URL for the committee's hearing schedule, along with a list of the members.
judiciary.senate.gov
I would urge you all to send your favorite rep an email or fax supporting their participation in this landmark hearing, perhaps suggesting that they do some homework on this particular variant of stock manipulation, abuse of property rights, abuse of voting rights, fraud, and racketeering.
Actually, that sounds a lot like the charges against Milberg Weiss - a favorite class action foil that has sued most of Rocker's known shorts, and quite a few of SAC's, as well, I'll bet.
Small world.
We just had Utah pass a landmark law a few weeks ago, instituting reasonable reporting requirements about those failing to deliver stock when it is due - alas, only for those companies on the Reg SHO list - but that's a start.
Now we are seeing Senate hearings to probe the shenanigans that this site has been documenting for years.
I would say that this time is different.
What becomes of the hearing is another matter. And why this committee is having to probe the allegedly flagrantly illegal behavior of participants in the stock market, versus the committee chartered with oversight of that market, should give everyone tremendous pause for concern.
I have maintained for some time that the system is broken. I have also alluded to wanting to document hundreds of emails and letters to Shelby, the head of the banking committee who canceled hearings on naked short selling, so that when this blows sky high he is directly in the cross-hairs as one who was, at best, asleep at the switch, and at worst, facilitated the looting of America's retirement by Wall Street.
This hearing is a good beginning - but it is troubling that the Senate Banking Committee shows no interest in getting to the bottom of things that are occurring in its back yard, under its purview. I cannot think of any benign explanation for that disregard for protecting investors - any more than I can conjure up a benign explanation for the SEC's grandfathering of all fails before a stock winds up on the SHO list, or for Annette Nazareth's "let them eat cake" dismissal of investor concerns over obvious manipulation of SHO list stocks.
Email Senator Hatch and express support. Post your correspondences in the Forum on the Wall of Letters. Some of the other committee members have had numerous letters sent to them, and issued boilerplate back to their constituents rather than substantiative response. This is a chance to request their undivided attention, and be on the record regarding their views.
I would also like to point out that perseverance is critical in any struggle, and would further like to thank everyone that has sent correspondence to their representatives, and posted their efforts in the Wall of Letters for the record. It takes individual effort, and nobody knows which of their efforts will be the one to take this past the tipping point.
We are all of us just a lone voice, but what we are seeing is that many voices, raised in harmony, can create a sound that must be heard. This is a good step in the direction of ending a seeming kleptocracy in the market. Let's make sure that every journalist, every commentator, every elected official knows about this hearing, and is prepared to pay attention.
Because this time, is, well...you know.
Copyright ©2006 Bob O'Brien |
