New York attorney general launches 'wide-ranging' probe into short selling

[Willie99]

http://www.marketwatch.com/news/sto...x?guid={E36ABB3A-CFFC-4104-A326-1F5BEE4439A1}

NEW YORK (Dow Jones)--New York Attorney General Andrew Cuomo said Thursday he's launching a "wide-ranging" investigation into short-selling on Wall Street, particularly in financial stocks.
On a conference call with reporters, Cuomo said he intends to use New York's Martin Act to prosecute short sellers who spread false rumors and engage in other improper conduct.
The attorney general said he's looking into short-selling in a number of financial firms, including Lehman Brothers Holdings Inc. (LEH), American International Group (AIG:American International Group, Inc

Cuomo also called upon the U.S. Securities and Exchange Commission to temporarily suspend all short-selling on financial stocks, preferably for 30 days.


"The markets need to be stabilized," Cuomo said. "One way is to root out short sellers who spread false information."

Cuomo said he believes the federal government has been "ineffective" in regulating the financial markets and said much of the troubles in the markets today are tied to mortgage fraud. .

"The federal regulatory structure has failed this country," Cuomo said.
Cuomo stressed that short selling is legal, but said he will pursue civil and possibly criminal charges against those who engage in improper behavior.

"You can't spread false information," Cuomo said. "You can't conspire to spread false information to manipulate the price of a stock."

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Does he know something we don't? Were short sellers spreading false rumors that were greatly influencing a skittish market?

I thought it was odd how the markets were totally tanked in the last 30 minutes on both Monday & Wednesday.

Tizdoom, are your boys fucking with us? :think2:

 

[tiznow]

gotta find a scapegoat and someone to blame when you are basically killing what's left of the free markets

also the idiots just banned short selling of financials period.....that's 3rd world shit

so you'll have no one to blame if this rescue doesn't work

should be interesting to see what happens with the markets in the days and months to come

either way america is done.....we don't own america anymore the fed and banks do

 

[Willie99]

Funny tizdoom, I don't feel "done".

I kinda feel the same I did yesterday, last week, last month, last year.......

you really do need more balance

 

[cussin'it]

LOL, Wully has himself a recession-proof biz boys. Don't matter what happens he be the man in the Spring.

Send Tiz a extension chord Wull. He only has one outlet.

 

[Willie99]

LOL, Wully has himself a recession-proof biz boys. Don't matter what happens he be the man in the Spring.

Send Tiz a extension chord Wull. He only has one outlet.

I don't know cussy, I'm getting paid a little slower than usual my "hillbilly" buddy. Can't wait for tax season though. Whoever wins, I hope they make a lot of changes to the tax code.

Even you might have to hire me.






What's your risk tolerance?

 

[Romanowski]

short sellers blame is minuscule

diversionary media PR tactic

 

[quantumleap]

short sellers blame is minuscule

diversionary media PR tactic

I always enjoy your perspective Romo. Whether I agree with it or not, it always makes me think in alternative trains of thought.

:toast:

 

[eek.]

We should arrest all Ron Pauls supporters and those 9/11-was-an-inside-job kooks immediately !

Fifth columnist scum !



"America is facing a new terrorist threat, led by Ron Paul and his 9/11 hamas"

 

[Willie99]

short sellers blame is minuscule

diversionary media PR tactic

I tend to agree. But one bad rumor can send a skittish market into a tailspin too.

 

[Willie99]

We should arrest all Ron Pauls supporters and those 9/11-was-an-inside-job kooks immediately !

Fifth columnist scum !



"America is facing a new terrorist threat, led by Ron Paul and his 9/11 hamas"

Not enough influence there buddy.

 

[cincy_]

I tend to agree. But one bad rumor can send a skittish market into a tailspin too.

Rumors are one thing ... shorters are putting their money where their mouth is ... they're not going around saying a company will tank, they're putting thousands (and millions) of dollars on the line.

Ban shorters and you'll have a two-bit company suddenly worth four bits ... with no check-balance and nobody to challenge it ... and sooner or later, they'll tank anyways.

 

[tiznow]

its been done in the past in many a 3rd world nation during economic crises it doesn't help and probably creates more problems over the long term as you can reach a no bid free fall point.....

its just a sign of desperation nothing else....

 

[alexJ]

so spreading rumors if your long is still ok right guys?

nobody ever complains about a stock jumping 20% on faulty take over rumors.

we can only have positive cheerleading in this market lol

 

[Willie99]

so spreading rumors if your long is still ok right guys?

nobody ever complains about a stock jumping 20% on faulty take over rumors.

we can only have positive cheerleading in this market lol

I'm pretty sure that's against the law too, but don't let that fact stop you.

Carry on