NO QUARTER FOR CORRUPTION (Focussing on The Fed./FRBS)

[funmaxus]

Now for my small contribution to this board, which is the topic of systemic risk in equities.

This may be a bit long winded post and to completely review the information may take upwards of 3 hours. The "credit crisis" may pale in comparison to the equity crisis, which is another ticking timebomb. Despite efforts made by the SEC to curtail the Naked Shorting and FTD's within US Financial Equities, large loopholes still exist. So much so that just one moth after the new SEC ruling, The Federal Reserve Bank of Cleveland wrote a paper on systemic risk. Of course, this paper was written to correspond with the anniversary of the "credit crisis" one year prior.... or was it?

fun
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Darkside of the looking glass:
http://www.businessjive.com/
My commentary: 1 hour slideshow presentation, discussing shorting, naked shortin and fails to deliver, along with the concept of systemic risk created in the US financial equities market. Note, the slideshow starts with the premise that the audience has no knowledge of how the US equity market works and then quickly moves into a college level lecture, complete with citations from academic and SEC.

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SEC Takes Steps to Curtail Abusive Short Sales and Increase Market Transparency
http://www.sec.gov/news/press/2009/2009-172.htm

SECURITIES AND EXCHANGE COMMISSION 17 CFR PARTS 200 and 242 [Release No. 34-60388; File No. S7-30-08] RIN 3235-AK22 Amendments to Regulation SHO
AGENCY: Securities and Exchange Commission. ACTION: Final rule. http://www.sec.gov/rules/final/2009/34-60388.pdf


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Federal Reserve Bank Of Cleveland
Policy Discussion Paper Number 27, August 2009
On Systemically Important Financial Institutions and Progressive Systemic Mitigation
James B. Thomson
http://www.clevelandfed.org/research/policydis/pdp27.cfm