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

To: dvdw© who wrote (3672)	8/3/2008 1:29:10 PM
From: Hawkmoon	Respond to of 5034

But as the ability of banks to lend has become constrained by the credit crisis, hedge funds are encroaching on investment banks' turf and providing financing to each other instead. Very interesting.. but presuming most hedgies engage in NSS, and those shares are held in account by various broker/dealers, it would strike me that the entities that manage the accounts in which those shares (electronically) are held have some measure of power if rules against NSS are enforced. Afterall, what kind of hedge fund is going to accept collateral presumably borrowed from a B/D via NSS activity? It's vulnerable to a B/D calling in all of those borrowed shares via forced "buy-ins" until the company's shares fall off the Reg SHO list and market based pricing restored. (just they would if I were margin called in a long position) and it would restore market equilibrium and suddenly all the collateral that NSS possessed is called into question. I can't even pretend to understand all the methods in which Hedgies could cut private deals with one another. But when it comes to real big bucks, they are truly as risk when there is little transparency into their actual financial status and financial liabilities. If I were a Hedgie, the last thing I would want to do is borrow from another Hedgie.. That's like borrowing from a two-bit shyster loan-shark who's prepared to stab me in the back and exacerbate my existing financial distress. And if they are pledging stock, or presenting cash collateral that is derived from borrowing from NSS activities, they are truly playing a shell game and that's as much a house of cards susceptible to collapse as any sub-prime loan.. ;0) As in the Sub-prime mess, all that's required to resolve the NSS issue is to actually enforce the existing laws. Hawk