CNBC: Calpers no longer lending to shorts on GS MS

Discussion in 'Stocks' started by W4rl0ck, Sep 18, 2008.

  1. W4rl0ck


    That thing is huge.
  2. This is stupid.

    How many pension funds like Calpers are invested in equities using a margin account?

    Think people, THINK!
  3. W4rl0ck


    I think they "rent" their stock to HF's.

    Could be wrong.
  4. and look at how much gs and ms are bouncing today....maybe the sec should just ban selling
  5. W4rl0ck


    Cramer was reporting there was a cabal of HFs trying to break MS and GS.

    Looks like the really big boys are tired of it and are fighting back.

    This should be good.
  6. poyayan


    Can you say "SQUEEZE!!"
  7. ASav


    Did you see the head of CalSTERS on CNBC just now? Exactly how is it that he knows that short selling which is legal BTW, is the cause of the declines? When Erin asked him specifically if he knew who was doing it he said no. What evidence are these guys going on?

    Is it possible they are looking to backstop the decline in their portfolios through rumor mongering? Isn't that illegal?
  8. poyayan


    Short selling is legal.

    Calling your share in to prevent lending them to short sellers is also legal..:)
  9. W4rl0ck


    Hedgies Flee Morgan, Calpers Tries to Stem Short Tide

    The spiraling downward of financial confidence has sprouted up in various areas this afternoon. Bloomberg this afternoon reports that hedge funds making up “less than 10%” of Morgan Stanley’s prime brokerage balance are withdrawing their assets from the firm, or plan to do so. The article cites “a person with direct knowledge of the matter.” The article notes that Deutsche Bank AG (DB), Citigroup (C), Credit Suisse Group AG (CS) and JPMorgan Chase (JPM) “are picking up Morgan Stanley’s clients.” The threat to hedge funds’ assets is real, the article suggests: Lehman has frozen “billions” in hedge fund money inside its prime brokerage unit since it filed bankruptcy on Monday.

    Pension funds try and strangle short sales
    But some are fighting the good fight, apparently. Dow Jones Newswires is reporting that the California Public Employees Retirement System (CALPERS) is “no longer lending out shares” of Goldman Sachs (GS) and Morgan Stanley (MS), hoping to “limit short-selling” of the stocks. The wire quotes Clark McKinley, a CALPERS spokesperson, as saying “We don’t want to inadvertently contribute to the instability of these companies or the market.” DJ notes that Cali’s teachers pension system yesterday stopped lending shares of both stocks, and sent a letter to 60 of its fellow pension funds urging them not to lend.
  10. W4rl0ck


    #10     Sep 18, 2008