Hi, I shorted some financials by accident today. Two stocks, and they were far from obvious "financials" in my opinion... Crossed checked, and checked again, but they escaped my radar today. Small size, barely profitable trades, about 13 executions across 2 stocks, but my broker says SEC is cracking down hard, my account is under investigation, and sounded pissed off. I know its new to everyone, but does anyone know if its just a fine, or what happens here? I know these are uncharted waters, but anyone's guess is probably better than mine. Thanks.
Probably you'll get 1 decade, maybe 2 of hard labor in a federal pen to help pay off the bailout debts.
Why would they let you short them in the first place? It sounds like it's their fault for not disallowing shorts on those stocks.
They tried to through the platform, but I have some automated stuff that bypasses their checks and balances. I am usually good about it, but obviously today was a little different.. Although the stocks were NOT hard to borrow Pre-open.
It's greedy bear raiders like yourself who've caused millions of Americans to be thrown out of their homes and into abject poverty. I hope you're proud. I doubt you'll hear anything. Crossing the SEC is one thing but don't let the RIAA find a pirated mp3 on you hard drive......
Dammit boy, stand up and be proud to be a short seller. You're a good damned American, and I wish this Army had more like you!
Look at how this was done. The other two horrible, once in a lifetime end of the world debacles, one in March, one last weekend, went to the weekend and were solved 'before the Asian open Sunday nite. This one was done immediately. And the naked shorting/shorting thing was done immediately, no comment period, dragging out, etc. The brokers aren't ready, and they don't even really know what the SEC wants them to do. I 've seen a bunch of compliance memos people sent me, talked to guys - a mess. But the consensus is, across the board buy ins Monday or Tuesday ( no one really knows) and a massive squeeze that could lead to the biggest rally ever. And those aren't my words.
Your broker sounded pissed, because the onus will be on him for allowing you to short through his API. I'm mean, come on, your broker had almost 12 hours to make the necessary changes in his API, test these changes, and then roll it out to you, and ask you to re-compile your program, to prevent shorting from occurring. Seriously, 20 years of hard labor washing Paulson's and the SEC's President's Mercedes, will be more than adequate compensation. This whole shorting curb is just eventually going to defer and then exacerbate the crash.
nasdaq announced today it is not banning short selling. i was shorting aapl and others today. none of them financials tho..