Documents Show How Goldman Engaged in 'Naked Short Selling'

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling'
http://www.rollingstone.com/politic...et-al-engaged-in-naked-short-selling-20120515

It doesn’t happen often, but sometimes God smiles on us. Last week, he smiled on investigative reporters everywhere, when the lawyers for Goldman, Sachs slipped on one whopper of a legal banana peel, inadvertently delivering some of the bank’s darker secrets into the hands of the public.

The lawyers for Goldman and Bank of America/Merrill Lynch have been involved in a legal battle for some time – primarily with the retail giant Overstock.com, but also with Rolling Stone, the Economist, Bloomberg, and the New York Times. The banks have been fighting us to keep sealed certain documents that surfaced in the discovery process of an ultimately unsuccessful lawsuit filed by Overstock against the banks.

Last week, in response to an Overstock.com motion to unseal certain documents, the banks’ lawyers, apparently accidentally, filed an unredacted version of Overstock’s motion as an exhibit in their declaration of opposition to that motion. In doing so, they inadvertently entered into the public record a sort of greatest-hits selection of the very material they’ve been fighting for years to keep sealed.

(More at above url)

 

http://media.economist.com/sites/default/files/pdfs/Plaintiffs Opp to MSJ.pdf <--- the .pdf of the "oops" document.

if only atticus would come back to explain to everyone what a "reverse conversion" is. in this case, a 'special' reverse conversion made from illegally 'failed' naked short shares which required no negative rebate (borrow cost) nor locate to sell short, basically free made up supply of stock to short, with a wink and nod. even better, once these reverse conversions are built from the illegally naked shorted shares, they are then bought back by the bank as a "conversion"! (edit: who then loan out those mythical share short *again* to collect the rebate!)

.... and i'm only on page 9. amazing stuff. wonder what the SEC will do with it,.. nothing? look the other way?

to be a fly on the wall when "they" decide to decimate a corporation for fun and profit. if only more corporations would open their eyes and look around, even *they* are getting raped by the banks.


--pfl

 

A conversion is easy to understand.

Call Put parity

Call + Strike Price= Put+Stock

interest rates aren't considered assuming it's short time horizon trade

google conversion and reversion... it's pretty simple really

 

I find it rather humorous some 7 years after I started these threads, traders are now looking at this like they always should have looked at it. It's criminal behavior and threatens your livelihood, and our capital markets.

We were laughed at and scoffed in 2005. Look at the dates in the leaked discovery. What a coincidence.

Wanna know what happens next? I've got a pretty good guess.

 

Do tell...
I remember following your threads back in the day. Inciteful stuff!
Thanks!