wonderful stuff. This turd of an economy is swirling down the porceline bowl known as Wall St. , and no one cares. But John and Lloyd don't like it when it's done to them, so they call Hillary and Chuck. Sen. Clinton Seeks Tougher Action On Short Sales September 17, 2008: 07:15 PM EST WASHINGTON -(Dow Jones)- Morgan Stanley (MS) executives, unhappy with the punishing that Morgan's stock is taking from short sellers, have asked U.S. regulators and lawmakers to impose tougher restrictions on such trading. Sen. Hillary Rodham Clinton, D-N.Y., appears sympathetic to the concerns. In a letter Wednesday, Clinton urged Securities and Exchange Commission Chairman Christopher Cox to take immediate steps to safeguard "substantial financial firms" for short-selling abuses. Clinton also suggested the SEC consider reimposing "tick test" restrictions it eliminated last year, which allowed short sales only when a stock's price is moving higher. "Time is of the essence, as just a few days of delay could be runinous" for market confidence and individual companies, Clinton wrote. Morgan, now one of two remaining independent investment banks on Wall Street, saw its stock price slide 24% on Wednesday, closing at $21.75. The steep drop came a day after Morgan reported third-quarter earnings that exceeded expectations, generating $1.4 billion of net income. Company insiders blame the declines on rumor-driven short selling. Morgan Chief Executive John Mack issued a note to employees reassuring them about the company and called Treasury Secretary Henry Paulson on Wednesday to discuss his concerns about the beating the firm's stock is taking, according to an individual familiar with the matter, who agreed to speak anonymously. Treasury spokeswoman Brookly McLaughlin declined to comment except to say " we're always speaking to market participants." Morgan executives also have contacted SEC Chairman Cox and heavy-hitting lawmakers, including Sens. Clinton and Charles Schumer, D-N.Y. The message: take action to protect financial services firms from manipulative short selling. The conversations have been going on throughout the week, since Lehman Brothers Holdings Inc. (LEH) declared bankruptcy, and continued after the SEC issued new rules Wednesday to crack down on short-selling abuses, according to this individual. The SEC rules, which take effect Thursday, cover short sales for all public company stocks and don't include specific provisions targeted to financial stocks, in contrast to a temporary emergency order the SEC issued in July that applied to 19 stocks, including Morgan Stanley and federal housing-finance giants Fannie Mae (FNM) and Freddie Mac (FRE). While the emergency order required pre-borrowing shares in advance of short sales in the 19 stocks, the new rule firms up stock delivery requirements after short sale trades settle. Clinton called on the SEC to re-impose the emergency order for select stocks. She said current market conditions "pose a gerater threat than the conditions in July which triggered the commission's emergency actions," and noted that some of the stocks protected by the emergency have since gone bankrupt or been subject to a federal government bailout. In addition, she suggested the SEC give "close consideration" to calls for an immediate restoration of the so-called "uptick" rule. Morgan Stanley and a spokesman for Sen. Schumer didn't immediately return a phone call seeking comment. SEC spokesman John Nester had no immediate comment. Short sellers profit from declining stock prices by borrowing shares for sale and replacing them later at a lower price. The practice is legal and in recent years the SEC has lifted some restrictions on short-sales. At the same time, the SEC has aimed to curb abusive "naked" short selling, in which shares are sold short without any borrowing beforehand, a practice which can have devastating effects on a stock's price. -By Judith Burns, Dow Jones Newswires; 202-862-6692; Judith.Burns@dowjones.com http://money.cnn.com/news/newsfeeds/articles/djf500/200809171915DOWJONESDJONLINE001026_FORTUNE5.htm
Go to page 33. "Pending Investigations". Know who this prominent individual is? http://www.sec.gov/about/oig/audit/2008/semiapr08.pdf Why is it not in any Financial Newspaper, that the SEC Inspector General is investigating the CEO of Morgan Stanley? Can any of you buck tails explain that to me?
Flytiger, thank you for the link to that deepcatpture web site. That story was absolutely gripping. I mean it. It was like a novel or a movie. I couldn't stop reading it. (I've always thought of Jim Cramer as a relatively harmless entertainer. You know, "Funny... like a clown." This portrait of him is actually a little hard to get my mind around.) But mostly I agree with the people who said, "you can't fight this, it's too big." Do you really think anything will actually be done about this whole issue? Will anything change?
Why not get the print version, so you can wipe your ass? You know, some people are interested in this stuff, like regulators, law enforcement types etc. If you don't like it, don't read it.
yeah but about 9 out of every 10 of your posts are just copy and pasting an article that all of us have access to via all the same websites. No joke, i think you posted 15 2 days ago. why? if i was so intrested if go to the website to read it for myself. We are all interested in "grant info", free $1000 from microsoft for sending this email to 20 people, and my credit report. I would like more information about all 3 subjects but really find them annoying when they come into my email box every day. So your solution to "dont read it" really does not do the trick for me. again, an article here or there is great, but of your 3900 posts, id say most are this andit comes right to my inbox
so as far as day traders who close there short out before the close this should be no problem as there's no delivery correct? if day trading houses try to exploit this and charge bogus fees to short thye'll just lose a ton of business. this new rule is not near as tough as the other short selling ban
' thanks for answering my question and not posting and article. This seems pretty fair, should not affect quick intra day trading. i just saw another order put forth by Cox. "I am asking the Commission to consider on an emergency basis a new disclosure rule that will require hedge funds and other large investors to disclose their short positions."
ROFMAO So what got us this far over the last 200 years ? He is a MORON and you are an even bigger MORON. The US has become a socialist state and destined to be another England. We will see how happy with a NOWHERE market.
"I am asking the Commission to consider on an emergency basis a new disclosure rule that will require hedge funds and other large investors to disclose their short positions." ----------------------- lol. If there are any hedge funds and large investors left. OTH, who dare take a short position against the gov't, they'll own it all