AI
CANADA SAYS: COX ADMITS BAN WAS A SCREW UP
Posted by: TSXminer
Date: Wednesday, December 31, 2008 6:26:07 PM
In reply to: pantherj who wrote msg# 264723
Hot off the press...Cox Regrets Short-Selling Ban:
However, Mr. Cox said he had some regrets over a drastic action the agency took as markets were hurtling downward in September. For a few weeks, the SEC stopped investors from making bearish bets on financial stocks like Morgan Stanley and Citigroup.
The SEC's office of economic analysis is still evaluating data from the temporary ban on short-selling. Preliminary findings point to several unintended market consequences and side effects caused by the ban, he said.
“While the actual effects of this temporary action will not be fully understood for many more months, if not years, knowing what we know now, I believe on balance the commission would not do it again,” Mr. Cox told Reuters in a telephone interview from the SEC's Los Angeles office late on Tuesday. “The costs appear to outweigh the benefits.”
Less liquidity in the markets was one of the unintended consequences, experts have said.
The SEC imposed the temporary ban under intense pressure from the Federal Reserve and Treasury Department which insisted it was crucial to the short-term survival of these institutions, Mr. Cox said.
---
U.S. SEC chief regrets short-selling ban
Article Comments (17) RACHELLE YOUNGLAI
Reuters
December 31, 2008 at 11:49 AM EST
WASHINGTON — Under fire for regulatory missteps, top U.S. securities regulator Christopher Cox defended his agency's record but acknowledged some regrets over how he handled the worst financial crisis in decades.
The Securities and Exchange Commission has been lambasted by lawmakers and others for not doing enough to prevent the 2008 collapse of Bear Stearns and Lehman Brothers, interfering with markets and failing to detect the alleged $50-billion (U.S.) fraud at Wall Street financier Bernard Madoff's firm.
Mr. Cox, a Republican and former California congressman, said the SEC's focus has been customer protection and broker dealer regulation and that the agency “performed that traditional role superbly.”
However, Mr. Cox said he had some regrets over a drastic action the agency took as markets were hurtling downward in September. For a few weeks, the SEC stopped investors from making bearish bets on financial stocks like Morgan Stanley and Citigroup.
The SEC's office of economic analysis is still evaluating data from the temporary ban on short-selling. Preliminary findings point to several unintended market consequences and side effects caused by the ban, he said.
“While the actual effects of this temporary action will not be fully understood for many more months, if not years, knowing what we know now, I believe on balance the commission would not do it again,” Mr. Cox told Reuters in a telephone interview from the SEC's Los Angeles office late on Tuesday. “The costs appear to outweigh the benefits.”
Less liquidity in the markets was one of the unintended consequences, experts have said.
The SEC imposed the temporary ban under intense pressure from the Federal Reserve and Treasury Department which insisted it was crucial to the short-term survival of these institutions, Mr. Cox said.
A few weeks after the temporary ban was lifted, global markets were again dropping precipitously, U.S. banks were begging the SEC to reinstate its short-sale ban and there was talk of shutting the markets down.
Mr. Cox said the chief executive of one major U.S. investment bank even urged suspension of normal trading rules across the entire U.S. market, likening the situation to how Abraham Lincoln suspended habeas corpus during the Civil War and Franklin Roosevelt sent Japanese-Americans to internment camps during World War Two.
The chief executive said, “that is how America made it through such crises, and we couldn't be too focused on maintaining the rule of law,” Mr. Cox said. “That was advice we rejected.”
Mr. Cox said he spoke to the White House, the chief executives the New York Stock Exchange and the Nasdaq, strongly urging them to keep the U.S. markets open.
Markets were never shut down and Wall Street investment banks weathered the market turmoil largely by transforming themselves into commercial banks.
It has been a rough year for Mr. Cox, who was recruited by the George W. Bush administration in 2005 to heal a fractious agency.
Initially, Mr. Cox managed to propose and adopt rules with little dissent from the agency's four other commissioners. He focused on modernizing the SEC, set a timetable for companies to submit financial reports with XBRL or interactive data, and reached agreements with the SEC's foreign counterparts to improve international enforcement.
Under Mr. Cox's watch, the agency also brought the second-highest number of enforcement actions in 2008 since a record in 2003 when staff dealt with fallout from the high-profile implosion of Enron.
However, his tenure as SEC chief will be coloured by his handling of Wall Street's meltdown.
Mr. Cox said he tries to keep the criticism in perspective.
“If you know that you are doing everything you can to improve conditions for investors and markets ... if you know that the team of professionals that is working on the mission is first-rate, that is ample comfort against what are sometimes hastily drawn conclusions by others.”
http://business.theglobeandmail.com/servlet/story/RTGAM.20081231.wseccoxintvu1231/BNStory/Business/?page=rss&id=RTGAM.20081231.wseccoxintvu1231
COMMENT ON THIS STORY
RACHELLE YOUNGLAI
Reuters
Latest comment posted at 3:41 PM EST 31/12/08
Christopher Cox defends regulator's record but says financial crisis should have been handled differently ...Read the full article
This conversation is semi-moderated What is moderation? | How do I report a comment?
Post a comment Skip to the latest comment
David Lorne from White Rock, Canada writes: I expect that many investors will also have regrets, when looking back as well. Sometimes the hardest decision that an investor faces, is to do nothing until the street fight is over.
Posted 31/12/08 at 12:16 PM EST | Alert an Editor | Link to Comment
Bob Robert from MB, Canada writes: It's not like the SEC and CFTC bunglings have stopped. There is massive evidence of naked shorting and manipulation in markets - hence the phrase "There are no free markets, just interventions." Failure to Locate rarely turns into Failure to Deliver - are the markets that honest? Shorting isn't a problem - lack of enforcement is a problem!
The COMEX appears to be run a muck with the CFTC busying itself doing ????
http://news.silverseek.com/TedButler/1230657055.php
Where are the regulators???????
Posted 31/12/08 at 12:23 PM EST | Alert an Editor | Link to Comment
Anyone but Ignatieff; Rae and LeBlanc. or Duceppe for the new Liberal Leader. from Canada writes: The SEC and US Government were probably the big enabelers of this massive Wall Street fraud against the working class. How they could have turned a blind eye, when whistle blowers were constantly warning them of what was happening is beyond belief and worthy of a public criminal enquiry.
Posted 31/12/08 at 12:36 PM EST | Alert an Editor | Link to Comment
Cosmo Spacely from Canada writes: Anyone but Ignatieff; Rae and LeBlanc. or Duceppe for the new Liberal Leader. from Canada writes: The SEC and US Government were probably the big enabelers of this massive Wall Street fraud against the working class. How they could have turned a blind eye, when whistle blowers were constantly warning them of what was happening is beyond belief and worthy of a public criminal enquiry.
___________________________________________________________
They are currently headed by Republicans....that should explain it all.
Posted 31/12/08 at 12:45 PM EST | Alert an Editor | Link to Comment
John L Stretlaw from Waterloo, Canada writes: The mess is proof positive than absolutley no one knows what the hell is going on. When told there might be some dark dishonesty here, Greenspan said: "Yes, and it surprises me."
What?
Posted 31/12/08 at 12:57 PM EST | Alert an Editor | Link to Comment
charles ANTHONY from Canada writes: Too many rules and not enough competant or honest gatekeepers. We are being used and abused by a farce created by humans that are too full of themselves to do a decent job at managing a corrupt stock market! "the Great Swindle " has occurred and now the gatekeepers are scrambling to change the rules so our elitists are parked in safe harbour. Shame and disgraceful. There is no one to trust when we hear no evil and see no evil.
Posted 31/12/08 at 1:15 PM EST | Alert an Editor | Link to Comment
mitchell roy from calgary, Canada writes: http://cbfg.blogspot.com/2008/09/open-letter-20080924-sec-on-short.html
Posted 31/12/08 at 1:54 PM EST | Alert an Editor | Link to Comment
Mark Baigrie from Toronto, Canada writes: 'Anyone' - 'cosmo' - 'ANTHONY" - Yes, again an 'attack' on the middle class. Perfect deduction. The fact that Geo. W., his SEC and conservative republicans in general or ANYTHING conservative(even this side of the border) are in 'collusion' for sue, and the 'safe harbour' for the well-off and the 'rich' continues unabated in a republican-held White House again.
One of you is RIGHT !! Some of these people should be indicted, tried, convicted and put in jail - FROM HIGH PLACES !!
Posted 31/12/08 at 2:17 PM EST | Alert an Editor | Link to Comment
Canbyte . from Canada writes: All shorting is a scourge of honest markets / investors. Shorts (both legal and illegal) create duplicates that distorts prices, market cap info, float info and other necessary indicators.
http://www.stopshortingstocks.com/
Get involved if you value your future
Posted 31/12/08 at 2:17 PM EST | Alert an Editor | Link to Comment
alex just a canadian from Canada writes: As others have posted, the rules are there but no inforcement. That or they "try" to then enforce them after to some how demonstrate that they are dealing with the problem. From the article what I can understand from it, too many hands in the till with their own self interests on all levels of government agencies not to mention the mysterious letter. My fear is if down south things are still in a mess even with SEC being more active, what is the OSC doing to curb curruption and minipulation by certain companies, traders, investment houses, and so forth up here. Other than copying the short selling ban from the US, what have they done??? If the OSC is unable to do its job, then its time to get rid of it. Start from scratch. TSX is there whether the provinces like one body or not, if you want your company on the TSX or Venture the rules are established clearly spelled in black and white with the same applying to traders. I don't care if there are short traders, options, derivitives but the must follow the rules. No more slaps on wrists. Any house (individual working for them) cought breaking the rules, first time fine in porportion to the activity, and they must now also leave in trust for a certain period of time an amount of money should they be found guilty again. Once one is found guilty, all future fines should be on an escalator level. One it will put the pressure on the big houses to keep closer tabs on their traders, with finally if it is an individual in the company that is breaking the rules. Perment expulsion in trading and a heavy fine for the employer. If there could just be (might already) a ranking of dealers, so those on the bottom will know the eyes are on them. But don't see it happening, but I can wish.
Posted 31/12/08 at 2:25 PM EST | Alert an Editor | Link to Comment
Mark Baigrie from Toronto, Canada writes: The ONLY way to get involved is to kick out ANYTHING that is 'conservative' in THIS country and the USA. They have done their part - we're next with the coalition - ANYTHINGs better than being 'run' by bloody greedy conservative-types and THAT is a proven fact over many decades if not at least a century !!
As long as Harper and co. are 'at the helm' - We're damned - period. If it hadn't been for the 'looming' coalition and the G.Gs stupidity in NOT allowing parliament to 'take it's course' democratically, we would now have at least some people 'in power' with half a brain in knowing how to run a country. Harper hasn't a clue and conservative-types in general haven't a clue what to do when things are not going well, let alone 'to hell in a handbasket' !!
Posted 31/12/08 at 2:30 PM EST | Alert an Editor | Link to Comment
Bill G from Calgary, Canada writes: Back to your cage Mark.
Posted 31/12/08 at 2:33 PM EST | Alert an Editor | Link to Comment
charles ANTHONY from Canada writes: I am a believer in capitalism. It's the people that are bad and deceitful and the apathy of our society not to see it and call them on it! Our system of government is set up to be inefficient so it can hide all the educated idiots we produce from our factory universities.
Posted 31/12/08 at 2:48 PM EST | Alert an Editor | Link to Comment
Mark Baigrie from Toronto, Canada writes: Here we go again with the insults on a personal level from the butt-heads in Oilberta - 'Bill G' - no comment - just a 'conservative indocrinated hack' from the oil patch.
Posted 31/12/08 at 2:49 PM EST | Alert an Editor | Link to Comment
Mark Baigrie from Toronto, Canada writes: bill g - SIWTSDS - ANY conservatism in this country has ALWAYS ended up in utter disaster. Go 'way boy - you bother me !!
Posted 31/12/08 at 2:51 PM EST | Alert an Editor | Link to Comment
Politicians are Fascist Pigs from Canada writes: Cox has nothing to be sorry about; he has enriched hundreds of specialized investco's and individuals.
The joke is on the average investors that thought COX was there to are those idiots.
Cox did his job and his part in this great unwinding.
This apology is just for the sheeple that "feel" they were hard done by as a result of "poor" regulatory oversight.
Posted 31/12/08 at 3:04 PM EST | Alert an Editor | Link to Comment
Join the Conversation, Leave a Comment
Posted by: TSXminer
Date: Wednesday, December 31, 2008 6:26:07 PM
In reply to: pantherj who wrote msg# 264723
Hot off the press...Cox Regrets Short-Selling Ban:
However, Mr. Cox said he had some regrets over a drastic action the agency took as markets were hurtling downward in September. For a few weeks, the SEC stopped investors from making bearish bets on financial stocks like Morgan Stanley and Citigroup.
The SEC's office of economic analysis is still evaluating data from the temporary ban on short-selling. Preliminary findings point to several unintended market consequences and side effects caused by the ban, he said.
“While the actual effects of this temporary action will not be fully understood for many more months, if not years, knowing what we know now, I believe on balance the commission would not do it again,” Mr. Cox told Reuters in a telephone interview from the SEC's Los Angeles office late on Tuesday. “The costs appear to outweigh the benefits.”
Less liquidity in the markets was one of the unintended consequences, experts have said.
The SEC imposed the temporary ban under intense pressure from the Federal Reserve and Treasury Department which insisted it was crucial to the short-term survival of these institutions, Mr. Cox said.
---
U.S. SEC chief regrets short-selling ban
Article Comments (17) RACHELLE YOUNGLAI
Reuters
December 31, 2008 at 11:49 AM EST
WASHINGTON — Under fire for regulatory missteps, top U.S. securities regulator Christopher Cox defended his agency's record but acknowledged some regrets over how he handled the worst financial crisis in decades.
The Securities and Exchange Commission has been lambasted by lawmakers and others for not doing enough to prevent the 2008 collapse of Bear Stearns and Lehman Brothers, interfering with markets and failing to detect the alleged $50-billion (U.S.) fraud at Wall Street financier Bernard Madoff's firm.
Mr. Cox, a Republican and former California congressman, said the SEC's focus has been customer protection and broker dealer regulation and that the agency “performed that traditional role superbly.”
However, Mr. Cox said he had some regrets over a drastic action the agency took as markets were hurtling downward in September. For a few weeks, the SEC stopped investors from making bearish bets on financial stocks like Morgan Stanley and Citigroup.
The SEC's office of economic analysis is still evaluating data from the temporary ban on short-selling. Preliminary findings point to several unintended market consequences and side effects caused by the ban, he said.
“While the actual effects of this temporary action will not be fully understood for many more months, if not years, knowing what we know now, I believe on balance the commission would not do it again,” Mr. Cox told Reuters in a telephone interview from the SEC's Los Angeles office late on Tuesday. “The costs appear to outweigh the benefits.”
Less liquidity in the markets was one of the unintended consequences, experts have said.
The SEC imposed the temporary ban under intense pressure from the Federal Reserve and Treasury Department which insisted it was crucial to the short-term survival of these institutions, Mr. Cox said.
A few weeks after the temporary ban was lifted, global markets were again dropping precipitously, U.S. banks were begging the SEC to reinstate its short-sale ban and there was talk of shutting the markets down.
Mr. Cox said the chief executive of one major U.S. investment bank even urged suspension of normal trading rules across the entire U.S. market, likening the situation to how Abraham Lincoln suspended habeas corpus during the Civil War and Franklin Roosevelt sent Japanese-Americans to internment camps during World War Two.
The chief executive said, “that is how America made it through such crises, and we couldn't be too focused on maintaining the rule of law,” Mr. Cox said. “That was advice we rejected.”
Mr. Cox said he spoke to the White House, the chief executives the New York Stock Exchange and the Nasdaq, strongly urging them to keep the U.S. markets open.
Markets were never shut down and Wall Street investment banks weathered the market turmoil largely by transforming themselves into commercial banks.
It has been a rough year for Mr. Cox, who was recruited by the George W. Bush administration in 2005 to heal a fractious agency.
Initially, Mr. Cox managed to propose and adopt rules with little dissent from the agency's four other commissioners. He focused on modernizing the SEC, set a timetable for companies to submit financial reports with XBRL or interactive data, and reached agreements with the SEC's foreign counterparts to improve international enforcement.
Under Mr. Cox's watch, the agency also brought the second-highest number of enforcement actions in 2008 since a record in 2003 when staff dealt with fallout from the high-profile implosion of Enron.
However, his tenure as SEC chief will be coloured by his handling of Wall Street's meltdown.
Mr. Cox said he tries to keep the criticism in perspective.
“If you know that you are doing everything you can to improve conditions for investors and markets ... if you know that the team of professionals that is working on the mission is first-rate, that is ample comfort against what are sometimes hastily drawn conclusions by others.”
http://business.theglobeandmail.com/servlet/story/RTGAM.20081231.wseccoxintvu1231/BNStory/Business/?page=rss&id=RTGAM.20081231.wseccoxintvu1231
COMMENT ON THIS STORY
RACHELLE YOUNGLAI
Reuters
Latest comment posted at 3:41 PM EST 31/12/08
Christopher Cox defends regulator's record but says financial crisis should have been handled differently ...Read the full article
This conversation is semi-moderated What is moderation? | How do I report a comment?
Post a comment Skip to the latest comment
David Lorne from White Rock, Canada writes: I expect that many investors will also have regrets, when looking back as well. Sometimes the hardest decision that an investor faces, is to do nothing until the street fight is over.
Posted 31/12/08 at 12:16 PM EST | Alert an Editor | Link to Comment
Bob Robert from MB, Canada writes: It's not like the SEC and CFTC bunglings have stopped. There is massive evidence of naked shorting and manipulation in markets - hence the phrase "There are no free markets, just interventions." Failure to Locate rarely turns into Failure to Deliver - are the markets that honest? Shorting isn't a problem - lack of enforcement is a problem!
The COMEX appears to be run a muck with the CFTC busying itself doing ????
http://news.silverseek.com/TedButler/1230657055.php
Where are the regulators???????
Posted 31/12/08 at 12:23 PM EST | Alert an Editor | Link to Comment
Anyone but Ignatieff; Rae and LeBlanc. or Duceppe for the new Liberal Leader. from Canada writes: The SEC and US Government were probably the big enabelers of this massive Wall Street fraud against the working class. How they could have turned a blind eye, when whistle blowers were constantly warning them of what was happening is beyond belief and worthy of a public criminal enquiry.
Posted 31/12/08 at 12:36 PM EST | Alert an Editor | Link to Comment
Cosmo Spacely from Canada writes: Anyone but Ignatieff; Rae and LeBlanc. or Duceppe for the new Liberal Leader. from Canada writes: The SEC and US Government were probably the big enabelers of this massive Wall Street fraud against the working class. How they could have turned a blind eye, when whistle blowers were constantly warning them of what was happening is beyond belief and worthy of a public criminal enquiry.
___________________________________________________________
They are currently headed by Republicans....that should explain it all.
Posted 31/12/08 at 12:45 PM EST | Alert an Editor | Link to Comment
John L Stretlaw from Waterloo, Canada writes: The mess is proof positive than absolutley no one knows what the hell is going on. When told there might be some dark dishonesty here, Greenspan said: "Yes, and it surprises me."
What?
Posted 31/12/08 at 12:57 PM EST | Alert an Editor | Link to Comment
charles ANTHONY from Canada writes: Too many rules and not enough competant or honest gatekeepers. We are being used and abused by a farce created by humans that are too full of themselves to do a decent job at managing a corrupt stock market! "the Great Swindle " has occurred and now the gatekeepers are scrambling to change the rules so our elitists are parked in safe harbour. Shame and disgraceful. There is no one to trust when we hear no evil and see no evil.
Posted 31/12/08 at 1:15 PM EST | Alert an Editor | Link to Comment
mitchell roy from calgary, Canada writes: http://cbfg.blogspot.com/2008/09/open-letter-20080924-sec-on-short.html
Posted 31/12/08 at 1:54 PM EST | Alert an Editor | Link to Comment
Mark Baigrie from Toronto, Canada writes: 'Anyone' - 'cosmo' - 'ANTHONY" - Yes, again an 'attack' on the middle class. Perfect deduction. The fact that Geo. W., his SEC and conservative republicans in general or ANYTHING conservative(even this side of the border) are in 'collusion' for sue, and the 'safe harbour' for the well-off and the 'rich' continues unabated in a republican-held White House again.
One of you is RIGHT !! Some of these people should be indicted, tried, convicted and put in jail - FROM HIGH PLACES !!
Posted 31/12/08 at 2:17 PM EST | Alert an Editor | Link to Comment
Canbyte . from Canada writes: All shorting is a scourge of honest markets / investors. Shorts (both legal and illegal) create duplicates that distorts prices, market cap info, float info and other necessary indicators.
http://www.stopshortingstocks.com/
Get involved if you value your future
Posted 31/12/08 at 2:17 PM EST | Alert an Editor | Link to Comment
alex just a canadian from Canada writes: As others have posted, the rules are there but no inforcement. That or they "try" to then enforce them after to some how demonstrate that they are dealing with the problem. From the article what I can understand from it, too many hands in the till with their own self interests on all levels of government agencies not to mention the mysterious letter. My fear is if down south things are still in a mess even with SEC being more active, what is the OSC doing to curb curruption and minipulation by certain companies, traders, investment houses, and so forth up here. Other than copying the short selling ban from the US, what have they done??? If the OSC is unable to do its job, then its time to get rid of it. Start from scratch. TSX is there whether the provinces like one body or not, if you want your company on the TSX or Venture the rules are established clearly spelled in black and white with the same applying to traders. I don't care if there are short traders, options, derivitives but the must follow the rules. No more slaps on wrists. Any house (individual working for them) cought breaking the rules, first time fine in porportion to the activity, and they must now also leave in trust for a certain period of time an amount of money should they be found guilty again. Once one is found guilty, all future fines should be on an escalator level. One it will put the pressure on the big houses to keep closer tabs on their traders, with finally if it is an individual in the company that is breaking the rules. Perment expulsion in trading and a heavy fine for the employer. If there could just be (might already) a ranking of dealers, so those on the bottom will know the eyes are on them. But don't see it happening, but I can wish.
Posted 31/12/08 at 2:25 PM EST | Alert an Editor | Link to Comment
Mark Baigrie from Toronto, Canada writes: The ONLY way to get involved is to kick out ANYTHING that is 'conservative' in THIS country and the USA. They have done their part - we're next with the coalition - ANYTHINGs better than being 'run' by bloody greedy conservative-types and THAT is a proven fact over many decades if not at least a century !!
As long as Harper and co. are 'at the helm' - We're damned - period. If it hadn't been for the 'looming' coalition and the G.Gs stupidity in NOT allowing parliament to 'take it's course' democratically, we would now have at least some people 'in power' with half a brain in knowing how to run a country. Harper hasn't a clue and conservative-types in general haven't a clue what to do when things are not going well, let alone 'to hell in a handbasket' !!
Posted 31/12/08 at 2:30 PM EST | Alert an Editor | Link to Comment
Bill G from Calgary, Canada writes: Back to your cage Mark.
Posted 31/12/08 at 2:33 PM EST | Alert an Editor | Link to Comment
charles ANTHONY from Canada writes: I am a believer in capitalism. It's the people that are bad and deceitful and the apathy of our society not to see it and call them on it! Our system of government is set up to be inefficient so it can hide all the educated idiots we produce from our factory universities.
Posted 31/12/08 at 2:48 PM EST | Alert an Editor | Link to Comment
Mark Baigrie from Toronto, Canada writes: Here we go again with the insults on a personal level from the butt-heads in Oilberta - 'Bill G' - no comment - just a 'conservative indocrinated hack' from the oil patch.
Posted 31/12/08 at 2:49 PM EST | Alert an Editor | Link to Comment
Mark Baigrie from Toronto, Canada writes: bill g - SIWTSDS - ANY conservatism in this country has ALWAYS ended up in utter disaster. Go 'way boy - you bother me !!
Posted 31/12/08 at 2:51 PM EST | Alert an Editor | Link to Comment
Politicians are Fascist Pigs from Canada writes: Cox has nothing to be sorry about; he has enriched hundreds of specialized investco's and individuals.
The joke is on the average investors that thought COX was there to are those idiots.
Cox did his job and his part in this great unwinding.
This apology is just for the sheeple that "feel" they were hard done by as a result of "poor" regulatory oversight.
Posted 31/12/08 at 3:04 PM EST | Alert an Editor | Link to Comment
Join the Conversation, Leave a Comment
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