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

To: pcyhuang who wrote (3370)	4/7/2008 9:15:11 PM
From: pcyhuang	Read Replies (1) \| Respond to of 5034

Congreeman Barney Frank's Letter to Chariman Cox Rep. Barney Frank, chairman of the House Committee on Financial Services, today sent a letter to U.S. Securities and Exchange Commission Chairman Christopher Cox, calling on the Commission to broaden its investigation of questionable trading of Bear Stearns stock in the days preceding its collapse to include trading activity in the stock of all of the large investment banks. Chairman Frank noted that, “Depending on what the Commission finds, this may lead to a broader inquiry into short selling by the SEC and Congress.” U.S. Securities and Exchange Commission 100 F Street, NE Washington, DC 20549 Dear Chairman Cox: As you know, in the days preceding the collapse of Bear Stearns there was an unusually high level of short selling activity in the firm’s stock as well as the purchase of then out-of-the money put options. There are strong indications of similar market activity in the stocks of other major investment banks. Some allege this was a coordinated activity on the part of various market participants—who also pushed rumors the banks were in trouble—in an effort to drive share prices down. Under appropriate conditions, short selling contributes to the efficiency of capital markets. But manipulative or collusive short selling threatens the markets’ integrity. I understand the Commission has turned its attention to the questionable trading in Bear Stearns’ stock. I strongly encourage you to widen your review to include trading activity in the stock of all of the large investment banks. Depending on what the Commission finds, this may lead to a broader inquiry into short selling by the SEC and Congress. I would appreciate if you would keep the Committee informed of the issues that arise out of your review. BARNEY FRANK Chairman house.gov pcyhuang

To: pcyhuang who wrote (3370)	4/8/2008 11:18:57 AM
From: dvdw©	Respond to of 5034

Notice all the interest in Bears collapse? what about the +40 % of the Nasdaq thats gone missing since, 2000? BS is an inside the game company. Senators cant go wrong elevating it to the spotlight, sentiment outside the limelight, seems to be that all these other companies can just go to hell on their own. and this "Another problem, of course, is the elimination of the "up-tick" rule, a controversial SEC rule change last July (well-timed to the beginning of the credit market meltdown) that removed the rule that short-selling could only be done when a stock was rising. Now it can be done when a stock is going up, down or flat. The up-tick elimination is being blamed for extreme market volatility and for the precipitous fall of Bear Stearns. Traders simply couldn't have piled on the stock with such effect without it, the reasoning goes. DUH.........

To: pcyhuang who wrote (3370)	4/8/2008 2:39:20 PM
From: gregor	Respond to of 5034

You are on a one man crusade but keep it up. With the down tic rule being deleted naked short selling could be the next scandal to threaten the whole financial system. Doing away with the down tic rule is an open invitation for abuse.It was a very definite contributing factor in the 1929 crash and the subsequent depression. Gregor

To: pcyhuang who wrote (3370)	4/8/2008 2:54:48 PM
From: Hawkmoon	Read Replies (3) \| Respond to of 5034

Last month, on the Monday after Bear Stearns' collapse, the SEC proposed a new "naked short-selling anti-fraud rule" that is supposed to rein in manipulative trading by preventing short-sellers from misrepresenting to a broker that they have properly located stock to borrow to sell short. Y'know.. this is the HEART of the problem.. A broker not being sure that their client actually has stock that he can deliver against his short position is like a broker telling me they don't have stock to deliver to me once I pay cash for it. I think there needs to be more transparency on stock transfer procedures.. If I want to short a stock I should be required to provide some form of documentation within the 3 day settlement period that guarantees delivery of shares. Hawk