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

To: rrufff who wrote (3758)	9/17/2008 10:18:30 AM
From: ravenseye	3 Recommendations Read Replies (1) \| Respond to of 5034

SEC Issues New Rules to Protect Investors Against Naked Short Selling Abuses FOR IMMEDIATE RELEASE 2008-204 Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling. The Commission’s actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008. “These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling,” said SEC Chairman Christopher Cox. “The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation.” In an ordinary short sale, the short seller borrows a stock and sells it, with the understanding that the loan must be repaid by buying the stock in the market (hopefully at a lower price). But in an abusive naked short transaction, the seller doesn't actually borrow the stock, and fails to deliver it to the buyer. For this reason, naked shorting can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions. Today’s Commission actions, which are the result of formal rulemaking under the Administrative Procedure Act, go beyond its previously issued emergency order, which was limited to the securities of financial firms with access to the Federal Reserve’s Primary Dealer Credit Facility. Because the agency's exercise of its emergency authority is limited to 30 days, the previous order under Section 12(k)(2) of the Securities Exchange Act of 1934 expired on Aug. 12, 2008. The Commission’s actions were as follows: Hard T+3 Close-Out Requirement; Penalties for Violation Include Prohibition of Further Short Sales, Mandatory Pre-Borrow The Commission adopted, on an interim final basis, a new rule requiring that short sellers and their broker-dealers deliver securities by the close of business on the settlement date (three days after the sale transaction date, or T+3) and imposing penalties for failure to do so. If a short sale violates this close out requirement, then any broker-dealer acting on the short seller’s behalf will be prohibited from further short sales in the same security unless the shares are not only located but also pre-borrowed. The prohibition on the broker-dealer’s activity applies not only to short sales for the particular naked short seller, but to all short sales for any customer. Although the rule will be effective immediately, the Commission is seeking comment during a period of 30 days on all aspects of the rule. The Commission expects to follow further rulemaking procedures at the expiration of the comment period. Exception for Market Makers from Short Selling Close-Out Provisions in Reg SHO Repealed The Commission approved a final rule to eliminate the options market maker exception from the close-out requirement of Rule 203(b)(3) in Regulation SHO. This rule change also becomes effective five days after publication in the Federal Register. As a result, options market makers will be treated in the same way as all other market participants, and required to abide by the hard T+3 closeout requirements that effectively ban naked short selling. Rule 10b-21 Short Selling Anti-Fraud Rule The Commission adopted Rule 10b-21, which expressly targets fraudulent short selling transactions. The new rule covers short sellers who deceive broker-dealers or any other market participants. Specifically, the new rule makes clear that those who lie about their intention or ability to deliver securities in time for settlement are violating the law when they fail to deliver. This new rule is effective immediately. # # # sec.gov

To: rrufff who wrote (3758)	9/17/2008 10:36:25 AM
From: TheSlowLane	Read Replies (1) \| Respond to of 5034

Yeah, but now they really, really mean it. Really.

To: rrufff who wrote (3758)	9/17/2008 6:53:25 PM
From: makeuwonder	Read Replies (2) \| Respond to of 5034

ruff. I recall you predicting this. I didn't think you were right on that part. I thought it would go the other direction. I guess I can see how you saw it coming now. They must have invested some of that illegal money into the housing sector. But ruff, won't it have to be at some point heading the other direction? If they are true to their word and they are forcing bankers/brokers to buy the shares they forgot to buy wouldn't the market go up? Don't you feel like this thing has been planned. I'd suspect there has been some over sea investors in on this along with some local ones. They messed with oil. Ran up the price most likely naked shorting it all the way up. Now they are going to take back the fools money and drop it like a rock all the while taking their money. As before in the 70's. They new the effects of higher gas. So if they pushed up oil beyond belief they make out like bandits in the first place. Then they buy off the stooges that helped them. Which I'm certain there were many of them. Wall Street movie was pretty correct in a way. They probably did have these big dreamers wanting to be a stock broker all sat around in rooms calling their "BEST CLIENT" first. They always refer to it after they bring up the current disaster such as Fannie mae right now and then they say and "SOME OTHER THINGS". Which is oh. We forgot to mention there's a bunch of shares we forgot to buy while we were scamming Fannie mae/Freddie Mac, Enron and countless others over the past few years. Scare the heck out of the public right? So they will call the brokers and sell, sell and more selling. The bankers and brokers love it to death. That helps to cover their shares cheaper. I read awhile back they are now shorting bonds. How the heck do you do that? At some point though especially if the normal public really get what's going on, go up? At least the percent it was short. Which some think may have been pretty big. Bet the IRS is the one who busts the whole story out of the water. Unless they buy off the IRS auditor's too. I'd love to see the total income from all the death spirals over the last say...at least 30 years. What do you think? Any good ideas there? Just curious and JMO.