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SEC Inspector General Comments on Naked Shortselling Enforcement


Parsad
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Interesting report issued by the Inspector General of the SEC, on how the Enforcement Divison is hampered in investigating naked short selling, due to some deficiencies in how complaints are referred.  Doesn't quite bluntly state that they are not doing their job, but does infer that enforcement of naked short selling is not being handled in an appropriate fashion.  Cheers!

 

http://www.sec-oig.gov/reports/AuditsInspections/2009/450.pdf

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That the SEC is not doing its job is no news to FFH shareholders.  Heavens, they issued a subpoena to FFH over 3.5 years ago and still have not issued a verdict about FFH's behaviour.  On another issue, FFH has had to spend a pile of money on suing the shortsellers because that was the only remedy available given that the SEC didn't do its job....maybe they'll recoup some of that money through a settlement or maybe not.

 

The SEC is an embarrassment.

 

SJ

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The last three paragraphs of this news coverage of the matter might induce vomitting:

 

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/18/AR2009031803459.html

 

"The SEC's enforcement division disagreed with most of the report's findings.

 

"There is hardly unanimity in the investment community or financial media on either the prevalence, or the dangers of, 'naked' short selling," it wrote.

 

The division added, "The people closest to the trading, with the deepest understanding of and access to the data, did not see and refer any of the large-scale, damaging 'naked' short sale abuse."

 

Allow me to translate:  "We asked the people who were naked shorting stocks whether this was a problem and they insisted that it was not, so we don't see the problem."

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Allow me also to translate:

 

"Our police officers who deal with thieves and their accomplices asked them if there was a problem with rubbing, and the thieves said no, so we don't see the problem".

 

or

 

"Some people sell bridges that they don't own and we asked them if there was a problem, and they said no. And since we're very "close" to them, we understand them better than you and we wish one day to be hired by them, please let us not do our job".

 

There is so much a***s that wait to be kicked, but they don't know it yet...

 

 

 

 

 

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