Discussion in 'Stocks' started by W4rl0ck, Sep 18, 2008.
That thing is huge.
This is stupid.
How many pension funds like Calpers are invested in equities using a margin account?
Think people, THINK!
I think they "rent" their stock to HF's.
Could be wrong.
and look at how much gs and ms are bouncing today....maybe the sec should just ban selling
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.
Can you say "SQUEEZE!!"
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?
Short selling is legal.
Calling your share in to prevent lending them to short sellers is also legal..
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 âless than 10%â of Morgan Stanleyâs prime brokerage balance are withdrawing their assets from the firm, or plan to do so. The article cites âa person with direct knowledge of the matter.â The article notes that Deutsche Bank AG (DB), Citigroup (C), Credit Suisse Group AG (CS) and JPMorgan Chase (JPM) âare picking up Morgan Stanleyâs clients.â The threat to hedge fundsâ assets is real, the article suggests: Lehman has frozen âbillionsâ 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 âno longer lending out sharesâ of Goldman Sachs (GS) and Morgan Stanley (MS), hoping to âlimit short-sellingâ of the stocks. The wire quotes Clark McKinley, a CALPERS spokesperson, as saying âWe donât want to inadvertently contribute to the instability of these companies or the market.â DJ notes that Caliâs 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.
Let's watch the HF blow up count.
Separate names with a comma.