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

To: The Ox who wrote (4458)	6/3/2009 1:50:51 PM
From: rrufff	Read Replies (2) \| Respond to of 5034

Madoff son is reading all blogs. Hopefully, the SEC will look into possible role of his MM entity and associates with respect to fails to deliver, i.e., manipulative shorting abuse of the MM function. ======================================= Madoff sons have not spoken to parents: report Wed Jun 3, 2009 12:33am EDT reuters.com NEW YORK (Reuters) - The sons of confessed thief Bernard Madoff have not spoken to him or their mother since he told them in December he had orchestrated a massive Ponzi scheme at the family-run firm, Vanity Fair magazine reported. The report in the July issue quotes the sons' friends, surrogates and former colleagues as saying Mark Madoff, 45, was angry and Andrew Madoff, 43, sobbed on the kitchen floor of their parent's penthouse apartment when Madoff revealed his scam. The next day, December 11, Madoff was arrested by the FBI and three months later he pleaded guilty to nearly a dozen criminal charges in Wall Street's biggest swindle, which totaled as much as $65 billion over 20 years. Madoff's wife, Ruth, has visited him in jail but the sons have not. Through intermediaries, the sons claim they knew nothing about their father's crimes, but there are doubters, the magazine reported in the article headlined, "Did the Sons Know?" A lawyer for Mark and Andrew Madoff has said the sons were not involved in the asset management business at Bernard L. Madoff Investment Securities LLC and that "they were shocked to learn of his actions." Madoff, 71, is expected to spend the rest of his life in prison for running a Ponzi scheme in which early investors are paid with the money of new clients. He is jailed in Manhattan awaiting sentencing on June 29. Only Madoff and an outside accountant have been charged. Mark Madoff scrutinizes every story and blog on the scandal, while Andrew appears to have detached himself emotionally from what he calls "a father-son betrayal of biblical proportions," the article said. (Reporting by Grant McCool; Editing by Steve Orlofsky) reuters.com

To: The Ox who wrote (4458)	6/4/2009 6:52:43 AM
From: rrufff	Read Replies (2) \| Respond to of 5034

Our voices have been heard, but we cannot stop. Despite the front-page scams, there is still "uncertainty," in the SEC ---Eventually, the blind will see!! Jun 3, 2009, 6:57 p.m. EST SEC staff cautious on pre-borrow rule, GAO says By Alistair Barr, MarketWatch SAN FRANCISCO (MarketWatch) - Securities and Exchange Commission staff are cautious about imposing a broad pre-borrow requirement as a way of limiting manipulative short selling because the costs could outweigh the benefits, according to a report from the Government Accountability Office released by lawmakers Wednesday. Short selling involves borrowing shares and then selling them. If the stock price falls, an investor can buy the securities back and return them to the lender at the original price, pocketing the difference as profit. See MarketWatch special report on short selling. Naked short selling happens when investors sell stocks short without borrowing the security first or delivering it to the buyer. During the financial crisis last year, the SEC imposed several rules to limit short selling and tackle naked short selling. In July, the SEC extended an emergency order mandating that all short sales of shares in 19 important financial-services firms be subject to a pre-borrow requirement. On Sept. 17, the regulator issued another order that penalizes brokers and their customers for failing to deliver securities by the settlement date. Failures to deliver are considered a tell-tale sign of naked shorting, although they can occur for other reasons too. The SEC also said that if short sales violate this close-out requirement, then any broker-dealer acting on a 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. These requirements were extended until July 31 this year. After the SEC imposed these restrictions, the number of securities with large and persistent fails-to-deliver dropped a lot, the GAO said in its report. These so-called threshold securities averaged 72 in November, down from a record high of 582 in July 2008, the GAO reported. By May 5 this year, there were 68 securities on the threshold list, GAO added. There were also no securities that had been on the list for more than 90 days by May. That compares to a daily average of 12 to 63 such securities from May 2005 through September 2008, the GAO said. Several commentators have recommended a more permanent pre-borrow requirement, the GAO said. However, the organization noted that the SEC is more cautious about this. "SEC staff said that they are continuing to evaluate the appropriateness of a pre-borrow requirement for addressing FTD and market manipulation related to naked short selling," the GAO said. "However, SEC staff said that the costs of a pre-borrow requirement might outweigh the benefits because FTD represent 0.01 percent of the dollar value of trades, and that a small group of securities (small market capitalization, thinly traded, or illiquid) are likely to be the target of any manipulative scheme," it added. The SEC's Office of Economic Analysis studied the effect of the pre-borrow requirement imposed in July. It found that fails-to-deliver declined in the 19 securities included in the rule. But it also concluded that the rule increased the cost of borrowing the securities, reduced all types of short sales and affected liquidity for these securities, the GAO said. Copyright © 2009 MarketWatch, Inc. All rights reserved.