The Authoritative NSS Page (NAKED)

[nWo]

probally the sec and finra wanted to keep them off the SHO list to keep the panic level down....they were not being shorted normally at all and you know it. Insane volatility all rolling out the red carpets for these hedsge funds and such....and it is nice to see they got punished for it...

[nWo]

good one thanks for sharing these Elia.

[eliaman]

WANT MORE? May 13, 2010, 1:22 pm Deutsche Bank's naked wrist slap
Regulators impose another minuscule fine for short-selling transgressions by giant firms.

Securities industries watchdogs have had it with naked short selling -- and if the biggest securities firms don't watch out, they could be left with some unsightly welts on their wrists.

Thursday's sort-of crackdown comes courtesy of the Financial Industry Regulatory Authority, the industry group that kind of watches over the biggest broker-dealers. It slapped Deutsche Bank (DB) with a $575,000 fine for five years' worth of violations of rules against naked shorting, the practice of selling a stock without making an effort to find shares to sell.


Where are the teeth?
Finra hit National Financial Services, a unit of Boston-based fund giant Fidelity, with a $350,000 fine for similar violations.

Securities rules say brokers can't do a short sale, in which a trader borrows and sells a stock in hopes of repurchasing it later at a lower price and pocketing the difference, without first identifying "reasonable grounds to believe that the security can be borrowed," in Finra's words.

Both Deutsche and National Financial virtuously set up systems to prevent this from happening, Finra said. The idea is to prevent abusive short sales that manipulate the market.

But as luck would have it, Deutsche then "disabled its system in certain instances." National, going one better, "created a separate system for certain customers," Finra said.

Deutsche and National Financial, which neither admitted nor denied Finra's findings, aren't the only ones playing this game. So is Goldman Sachs (GS). It got fined $450,000 last week by the Securities and Exchange Commission and NYSE Regulation for 521 violations of short-selling rules -- including several instances in which the firm found itself in the SEC's short-selling "penalty box."

The censures of the three firms come as the SEC seeks to crack down on naked short-selling with what you might describe as mixed results. Yes, fines and bad publicity are always useful tools. On the other hand, three giant players managed to settle cases by spending just $1.4 million -- a mere fraction of Wall Street's ever- increasing trading profits.

"The SEC has done a fantastic job identifying naked short-selling as a destroyer of shareholder value," said John Tabacco, who runs the locatestock.com electronic stock-locating service. "But when you compare $1 million in fines with hundreds of millions of dollars in execution and clearing profits, you can see where the firms just see this as a cost of doing business."

Back to main column

[janice shell]

I see you didn't actually read my post. They were NOT being shorted naked. If they had been in any significant way, they'd have been on the SHO list. They were just being shorted. Quite normally.

The shorts were right, and should not have been punished for that. People should indeed have noticed the increasing short interest, and should have realized that something was badly wrong with the companies in question.

But never mind. You don't understand a word I'm saying, do you?

[eliaman]

"traders broke short selling rules on 385 separate occasions"

WE SHOULD REQUEST THE DATA FROM THE SEC FOUND BASED ON THE FOIA AND SEE WHAT STOCKS THEY WERE TARGETING!!

[nWo]

another claim!!! good job and theres plenty more out there...we all know NSS and cellar boxing and all these other tactics are out there. ANything for people to make a quick buck and screw over the majority. Dont belive it look at the financial crisis in late 2008...hahaha yes.

[nWo]

that sounds more like an excuse to me...and of course they were being NSS those financials were they were dropping like no tomorrow....

[eliaman]

SEC says two Boca men performed illegal short saleslatest .By Jeff Ostrowski Palm Beach Post Staff Writer

Posted: 4:34 p.m. Tuesday, May 11, 2010


The Securities and Exchange Commission on Tuesday accused two Boca Raton men of illegal short selling of securities to make illicit profits.

Accused of violating the SEC's Rule 105, designed to prevent abusive short selling and market manipulation, were Peter G. Grabler who made $636,123, and Leonard Adams, who made $331,387. Grabler and Adams participated in numerous secondary offerings of stock in public companies to improve their access to initial public offerings underwritten by the same broker-dealers the SEC said.

Grabler and Adams, who both lived in Massachusetts during the period of the wrongdoing, agreed to pay a combined $1.5 million to settle the SEC's charges.

[e-mail]

[janice shell]

That is not an appropriate reply to my post.

Yes, the SEC slapped a shorting ban on 19 financial stocks, only one of which--Deutsche Bank--was even on the SHO list. No naked shorting at all. That was one of Chris Cox's very worst moments; he sounded like a sleazy penny stock CEO.

The FACT was that the financial companies were in enormous trouble. Trouble of their own making. They deserved to be shorted into the ground. That's what shorting's FOR: to detect and correct mispricings.

And even Cox admitted months later that his shorting ban had only made a bad situation worse.

[eliaman]

f'ing slapp on the wrist considering the profts

[nWo]

I was just about to bring this case up, this proves something right here good DD here.

[eliaman]

Goldman agrees to pay fine over claims it broke short selling rules

By Stephen Foley in New York


Wednesday, 5 May 2010

Goldman Sachs has been fined over allegations that it broke the short selling rules introduced to protect financial firms at the height of the market panic in 2008.


The bank agreed to pay $450,000 without admitting wrongdoing, after the New York Stock Exchange and the Securities & Exchange Commission said its traders broke short selling rules on 385 separate occasions.

The SEC imposed rules to prevent so-called "naked" short selling. A short sale is when a trader borrows stock to sell, in the expectation that they can pick it up cheaper later in time to return it, thus pocketing a profit. A naked short sale is when the seller doesn't even bother to borrow the stock, and regulators worried in 2008 that this was contributing to the downward pressure on financial company share prices, as well as causing dangerous administrative problems.

Goldman's trade execution and clearing business made failures of supervision and compliance with the rules between September 2008 and January the following year, the regulators allege.

The case comes on top of Goldman's escalating legal difficulties related to its mortgage derivatives business, where it faces an accumulating number of lawsuits from shareholders angry at the bank's activities in the run-up to the credit crisis and claiming they were kept in the dark about a fraud investigation.

Regardless of whether Goldman settles or is found guilty of fraud in the complex subprime mortgage deal over which it was charged by the SEC last month, it must now also defend itself against accusations that it should have told investors last summer that it had received a Well's notice from the regulator. A Well's notice is a formal warning that civil charges are likely.

Goldman says it had not considered the notice to be material information, and hadn't expected to be charged. It denies the SEC's allegations.

[nWo]

there was a BAN your right.

[eliaman]

BS its a illegal practice, the SEC put a BAN on it protecting the financial stocks, you're in denial!!

[janice shell]

And with that, I have had enough of this appallingly moronic conversation.

Come back when you've learned something.

[janice shell]

when you have someone going on 80k posts denying naked shorting and the sec busts hedge funds for this sort of manipulation...

What hedge funds would you be talking about. Name names. And I don't consider dinky toxic financers to be "hedge funds".

ITS COUNTERFEITING and that is illegal!!

Naked shorting is not counterfeiting. Make an effort to learn the meaning of words.

[nWo]

thats right you bring up a good points about when the market was crashing it was proven it was going on too...and I rememver the SEC saying something about it....

[nWo]

According to SevenTen's calculation and others FFGO has experienced major shorting of stock, NSS, and cellar boxing it appeared some of that eased today, and the stock went up...we had three mm;s on the ask at close yesterday and with very light volume today the dissapered so something is up!! or something happened these mm;s they play there games we know how it is.

[janice shell]

Once again, you "hear" wrong. It used to, but the Canadians cracked down on it.

[eliaman]

when you have someone going on 80k posts denying naked shorting and the sec busts hedge funds for this sort of manipulation, well, you draw the conclusion!! This is very lucrative and illegal, but whos guarding the henhouse? ITS COUNTERFEITING and that is illegal!! why did the govt BAN it when the market was crashing ONLY on financial stocks? The SEC doing this acknoledged it existed and failed to act protecting ALL stocks!!

[janice shell]

Christ on a crutch.

Lay off the conspiracy websites. Try to LEARN something.

[nWo]

I hear a lot of shorting and NSS goes on in Canada....

[janice shell]

Sheesh. I've been a member of IHub since 2001, and I've never had an "attack". Come to think of it, I've never had an "attack" at all. Anywhere.

Probably you're just being pinged. Happens automatically, for a variety of reasons, and has nothing to do with IHub.

[janice shell]

No. What YOU said means that you have no idea what you're talking about.

[janice shell]

And that's wrong. We need to do what Canada did, and require ALL public companies to register stock and file Ks and Qs.

[nWo]

intresting....

[eliaman]

what janice doesnt tell you is the market maker excemptions which allow Naked Shorting are not reported, but its ok because they are provideing liquidity!! AS IN COUNTERFEITING!!

[eliaman]

just had 2 more attacks, i really dont give a ratz azz what you think...people know where the corruption lies around here!! ASK THE FORMER OWNER

[nWo]

ahhh so that means FFGO is being Naked shorted then???

[eliaman]

Janice, you have so much hate for pinks, yet the system allows them for them to exist.

[janice shell]

No. Paranoia is an ugly thing.

[janice shell]

Sigh... MMs still have an exemption; naked shorting is part of their job. To provide liquidity, you know. No liquidity, and the Pinks would be a graveyard.

[eliaman]

is it common for trojan horse virus attacks on ihub janice? No not trojan condoms, viruses that is!!

[nWo]

when would that ever be allowed, and when did that take place? during the financial crisis when the financial firms were failing?

[eliaman]

they dont have options, but the mms abuse the excemption rules to naked short, dont deny that please!!

[janice shell]

Janice admitted herself how option market makers were naked shorting...

Hello?? They had an exemption that allowed them to do it. The exemption has now been removed, so they can't do it. Which has probably resulted in much higher premiums for options.

An additional clue: trash penny stocks don't have options.

[nWo]

thanks elia I knew she knew it was going on...and of course the mm's on the otcbb do it and on the otc...lol..

[janice shell]

ON MORE TIME: the aggregate short volume list doesn't report anything meaningful for retail investors.

You want the twice-monthly short INTEREST report.

[eliaman]

don't waste your breath or time arguing the system is broken and rigged!! the mms are the crooks and thats a fact. Janice admitted herself how option market makers were naked shorting, who's to say the mms on the otcbb dont do it? she has no evidence this is not happening, its just her opinion that its not.

[Bull Finch]

That's alright janice

I've been a shareholder since 9/2004 the WAGI days I think I have a handle on what is realy going at FFGO that's why I came to the NAKED board.

Good KNIGHT to you janice.
I think I'll squeeze my big but in bed.

[nWo]

loook here

FFGO - Short Volume for May 13th - 40%

20100513|FFGO|53306800|134823444|O

still rather high at 40% reported by seven....but much better then what it has been. like i said the result is a higher pps on ffgo.

[janice shell]

we can definately say ffgo was on the NSS list

No "we" can't. FFGO has never been on the Reg SHO list.

[janice shell]

I'm not "assuming" that, I know that.

Short interest is NOT added up. What it is today is what it is. No more, no less. And the short interest in FFGO has been ZERO for months now.

[nWo]

we can definately say ffgo was on the NSS list, and after it was not squeezed as much today, looked what happened...hahaha yes

[janice shell]

That would take way too long. Read my old posts on the board.

[eliaman]

so you are assuming there is not a short position that may have been taken prior to 2008 when the stock was trading at much higher levels?

[Bull Finch]

Well tell me then what do you know.

[janice shell]

Really? Something tells me you don't know anything at all about Lumb or FFGO.

[janice shell]

The options market makers' exemption has been eliminated.

[Bull Finch]

That's not what I've been hearing.

The can of worms has been opened, the you know what is going to hit the fan.