Would like to know if anyone else has heard this about shorting.
Advised today that SEC is now mandating hedge funds disclose the brokerage from where they are borrowing shares to short. Failure to do so will result in huge fines and a loss of license. We have not confirmed this as yet, but apparently IF, repeat IF this new SEC Rule is in place it needs to be confirmed. If yes it is in place it is a good thing. Way too much shorting going on with BAC Stock. Hedgies borrowing from each other and sharing profits day to day. VERY unfair and unethical. Hope new Rule is a truism.

GLTAL.

The feds won't let them do the raise. BAC has to beg these bureaucrats to do a stock buyback, now in progress. At the completion of this buyback, BAC advises they will apply for another and maybe, just maybe ask for a divy increase. We certainly hope so. We've all suffered enough.

We certainly hope so as well! Seems they "control" too many shares and borrow them from one another. Yes, the hedgies loan shares to each other to take a piece of the profit from a short trade. The level of inside manipulation in this market is truly unreal. There'a book by Vonnegut entitled "Top Producer" that really rings a bell. A new movie coming out as well, all about a real world trader who did so much damage to retail investors lives. A must see, then on to beleaguer the politicians in Wash. to make changes for the better. Tough task for sure, as they are invested in the same hedge funds.

wish we could agree friend.
As of now BAC is the most heavily shorted Stock on the NYSE. Check it out on "Street Authority". No falsehoods there. BAC is in serious trouble and we too have been seriously victimized by the POS group who did this to all of us. This Stock is so far behind all other in this sector we are doubtful it will get beyond maybe, just maybe book @ 20.70. Hate to be in this position, but it is "dead money" beyond this number, if it ever even gets there. MM's will short this forever. We have really been "VICTIMIZED" by this Stock/Company and deserve a SPECIAL DIVIDEND. You may not like this Post, but too bad, ..real world of BAC Stock. Ken Lewis got millions to leave, retail shareholders get screwed,..again.

Quite accurate. This should never have happened. FDA is at fault,...and there was definitely a "leak" of info to some situation that took great advantage of this insider info.
Still in doubt anyone. Just look again, and again at just what happened, timing and when the the retail investor FINALLY got the same-same info. The simple logic prevails and is 'open and obvious". The info had to come from within the FDA.
ARIAD should be "back" very soon, but look at the damage!!!

GLTAL.

The SEC is the "glad handing" location for the SEC ilk to find a job in the private sector on Wall. St. Case in point, former SEC Chair Nancy Shapiro. She is now with a firm that teaches brokers how to avoid SEC scrutiny. Fact. Check it our.

It will be up to ARIAD and/or a law firm with prima facie' evidence of sort, that will allow such a factual predicate to be sufficient cause for litigation. Investigations are ongoing, so should any evidence of a personal agenda surface thence become provable,..look out FDA and other(s). No further comment, but so much damage has been done to so many. Those of us not on margin will recover in time, but the margin calls have no doubt wiped out many who did not deserve this.

GLTAL.

A short P.S. to previous Post.
Just off the phone with some banking execs who are also Clients. We get the straight "skinny" from them.
We are told that the banks, ALL banks will have a more difficult time making loans, especially homeowner loans after Jan. 1st. Why one might ask. It's Dodd-Frank ,..again. Now then, one might say that's good as only the well qualified will get a loan. Agreed. Issue though is what this will do to the economy. Obviously not good.
Simple solution is after Nov., 2014 we ask congress to repeal at least some of Dodd-Frank. Bottom line is that banking per se' needs to be allowed somewhat to open its' doors again.

They do provide "comic relief" here,...so enjoy, but "dis". More than FIIA will be needed in that there may be a individual(s) who need to be deposed under oath. This action in more than one locale';...follow? Spoke to some hedgies last week and they are being very, very QT on this matter. Like there may eventually be a "perp walk".
What's unfortunate is that we are having to have this interaction rather than doing DD on a noteworthy stock with "legs". Hedgies know ARIAD has such legs so to speak, and have really played this Stock on info WE did not have. In Law, which is now a big part of the BAr Exam to include the MBE. we use simple logic. Just ask yourself this simple question: How in fact did the Stock drop 75% BEFORE we knew of this info!! Much more to come, however, suggest one be a royal pain to his/her congress persons. We can make a difference and the time is now. HF Trading via computer algos is a
serious detriment to the market real value, and to retail investors!
GL.

We know who they are as well;..."bottom feeders" for certain.
This will get good as we get more info in discovery. Rest assured ARIAD/legal is not just sitting on cucumbers.

Fully agree.
We know and communicate with quite a few. At issue is the fact that they have their money with the same hedge funds! All involved here, so yes, a lawsuit will make a difference. No doubt a lawsuit will be forthcoming IF, repeat IF sufficient prima facie evidence can be found by whatever means possible. There has to be "proximate cause" to get the case accepted by the court,any court.
Some of the same law firms that sued ARIAD will no doubt be soon to withdraw the action and look into a action against the FDA if $$$$$$ warranted. Expensive to sue any govt. agency as they have unlimited taxp[ayer funds to use on lawyers/defense, etc.

Quite correct "mejs", and rightfully so.
we have kept up the pressure on our govt. via elected reps in congress to stay on this. They assuredly have as we've been advised.
we further suggested a independent "board of doctors/scientists en banc" would be a much better solution for this Country rather than a political and possibly corrupt govt. group of employees.Much like a group of judges en' banc like in an appellate court. This would likely remove any early "notification" to anyone with a personal agenda,..like maybe a relative with a hedge fund or similar.(????)
Suggest a follow up by all concerned with your respective congress persons. It will make things happen,..like a much needed congressional investigation into a very close Wall St./govt. set of connections.
GLTAL.

Agreed.

We can almost "feel" it now, and it is being made worse given the goings on.
AM finally at the point of believing that the banks brought this on themselves, and we the shareholders are suffering for their indiscretions, and more. After almost 25 years of being a long and strong shareholder the thought of moving this capital elsewhere is
more prevalent than ever. BAC is well managed, but the shareholder payback is pathetic. The buyback is ongoing, but that is not enough to arrant continued adhesion. A special dividend, much like others have done is in order.
Still long, but in deep DD on same.

GL.

Good Post "Grandma". Keep it up,...and not to be concerned about any misanthropes who remain in denial. Want another opinion, contact Jason Kantor at Credit Swisse'. Their fund is livid over the "mixed" reporting of FDA on Iclusig. Serious issues have been put forth as to why this occurred.
The FDA needs to be "outed" for this bias so damaging to so many. Only winners here have been the insiders where ever they are, i.e., FDA and/or hedgies. Do the math;..140 MILLION share traded(shorted) at a profit.
Losers: = retail investors. Fact. We want to see a "perp walk".

GL.

FYI:

Fellow longs, no doubt many of you have read the latest on a State suing BAC. It's Vermont now, and of course being such a lib State they hope to do some damage to the "nasty banks". What is bothersome is that depending on the outcome,maybe, many other states will follow this chronic litigation.
Maybe BAC had its' share of individuals who did this to us, but the fact remains we don't deserve nothing but more suits. Time for BAC to issue a "SPECIAL DIVIDEND", for which they do not need permission from the socialist government now in place. Pathetic performance in spite of the Company being so well managed.

"Gradma":

Excellent Post. Thank you.
Rest assured HB is considering ALL options. Pharma is fearful of the FDA for all the reasons one may assume. If a political "pithhing contest" occurs, the FDA has the resources(taxpayer funds)and the lawyers, again taxpayer funded, to do a real number on any pharma.
Without saying too much, one should visit the FDA sometime and inquire as to who are the well dressed men and women roaming the halls. 3 guesses, and their pockets are bulging. Those in the FDA who are well connected to Wall St. in ANY way are specifically sought. Hhhmmm, do we know of any "connection" that is similar.
No doubt a competitor has a "dog in this hunt". Seems it worked as well. Hedgies made a fortune, and are now again making huge money with the PPS "driven" down where they want it. They are having multiple orgasms at NV. Same same at all other would be competitors. Mind boggling corruption of the first order. We will need to see more prima facie' evidence as will our colleagues prior to any litigation. Know that the matter is being carefully looked at by many.

GLTAL.

Excellent.
Further, consider all the legal "ammo" the ARIAD legal team now has per the misuse/misapplication/alteration of the definitive terms/standards alone. OMG,..talk about a slam dunk!

Clearly demonstrative of proximate cause for litigation. Know that HB's legal team is well aware of this. Good Post.

Motion for Summary Dismissal is SOP in the court system. If sufficient prima'facie evidence to warrant a trial, case goes on the docket. This one will go to docket for certain. HB's lawyers are smart enough to file away from Washington also.

Agree.
They can do it en masse' with a congressional hearing however, and remain somewhat "closeted". Best bet, maybe enough political pressure on either to get SEC to do something to at least curtail this rip off of the retail investor.
What matters is the fact that the FDA insiders are now concerned as to what really went down in this specific instance. We need a "perp walk" to put a curb on this info leaking. Some hedgies we know are joking about the $$$$$$$ they made on this flash crash. That's all they will acknowledge for obvious reasons.
Do not doubt that there are many hegies that know one another,drink together, golf, fish, whatever. Seen it. Enough said.

Good Post!

Fully agree, and have seen it first hand. Any newbie or those naive should really make every effort to visit a hedge fund trading room.
You actually must sign a "gag order" with most as a visitor. Why,LOL, one will not believe the speed with which "they" trade. The human eye cannot stay with it! If one can stay on the side of the hedgies , fine, but how does one do that unless they are within. "Marry" your computer. Sure, by the time you recognize a trade, they have put in a reversal after making pennies. SO one trying to follow is always behind the trend. Had it happen in oil and this was inside the brokerage house!
We will see this continue per the tax loss sales. Close to bottom at present on what we can discover. Just off the phone with Congressman who advises FDA is doing it's "dog and pony show" of B/S on this specific matter.
If you can play the dips fine. A bit nerve wracking as the hedgies know where your stops are. A new tax on HFT would give one more time to spot a trend. same-same for a Uptick Rule back in place.
We see a Stock with "legs" that will be played as long as it can be. We like it long term.

Yes He will.
With a team of skilled lawyers, it may be assumed considerable litigation may ensue. We have easily discovered a number of legal areas wherein proximate cause exits which is sufficient to warrant cross-action(s).
Lastly, when as a military officer, and in law school, also subsequent, one learns,"never warn your enemy". Therein the silence stemming from ARIAD. The FDA must be exposed for the entanglement of words not know in definition as specific to a singular chemical, chemical and or human interaction or more. Bottom line: lots of grey area obviously misused to the detriment of ARIAD and shareholders.

GLTAL.

There are over 8,000 hedge funds in the U.S at present. Thus a reference to more than one must be plural. Obviously more than one hedge fund involved.

Spot on !
And it will continue until we can get some Rule changes. For those of you who like the hedgie "manipulation",..who state , "they create volatility";...B/S!! Yes,they sure as hell do create volatility, but unless you are in their trading room, or "ammry" your computer you are going to get screwed BIG time! A lay person cannot think as fast as a pre programmed algo of course, so by the time you blink you've lost! With an UPTICK RULE in place you can at least get a warning as to when a short with algos will possibly enter the stock.
ARIA is sadly almost completely in the control of the hedgies at this juncture. A renewed declaration from the FDA in relation to the Drug will certainly allow a capital appreciation in PPS, however, the hedgies will short the Stock over and over and over.
These a..holes "borrow shares from one another!! Get informed or you will get losses ongoing.

They now have total "control" of the PPS. We are of the opinion that this entire scenario was a well contrived PLAN from the getgo.
You should see their balance sheets,..i.e. the hedgies.

From a highly experienced legal team we fully concur.
In this so-called "administration", we see so many legal violations of The Constitution and congressional protocol that each agency is assuming they are untouchable. Absolutely incredible. We must hold them accountable, and can only do this thru our congress. Mandate performance from these people. That or else!
The FDA is a "rogue" agency that feels they can do whatever.

Fellow shareholders and longs:

FYI: About BAC directly.
Just this AM got info from American Banking FOrum and Duke Univ. School of Law about the effect of Dodd-Frank on BAC and other banks. D/F was passed in 2010, and is having a very costly affect on bank shareholders everywhere. Advised in Law that so far over 5.9 Million legal work hours have been spent in trying to work thru the regulations, and this times an estimated $1,000. per hour for the high end law firms. That is 5. 9 BILLION dollars taken from the shareholders. Do the math.
That's not all. In speaking with B. Moynihan recently He advises He expects ANOTHER 9 BILLION to be spent on legal fees and litigation expense.
we are going to Petition our congress to at least "tweak" Dodd-Frank come the mid-terms and shortly thereafter. Our issues are the fact that this $$$$$$$$$$$$$$$$$ could have been given to we shareholders who ahve suffered enough.

GLTAL.

It's not the Stock,..called "manipulation". Easy to spot. Hedgies are having a field day with us.Push the PPS anywhere they want it.
Buy, short, buy, short and on and on it goes. Lots of shares times maybe pennies per share times x maybe 15 trades per day???
Do the math.

GLTAL.

Fully concur. Hedgies do move the market. Only issue is that when they choose to take control of a specific stock they do so.Thence keep the PPS where they want it. This is largely done with stocks with "legs", or strength. That way they know it will move upward for the most part, however, they "push" it up with volume. Then, short it with borrowed shares. Then BUY again, and do it all over and over and over. They did this to BAC for 2 years,..keeping the PPS between 5.00 and about 9.00. As long as the PPS is cheap they control many more shares, thus PPS. Problem is, so many retail investors count on a stock PPS appreciation for a retirement, education, etc. It's a trade off, no side is totally correct. Uptick Rule would make both sides a more equal playing field. A retail investor could see a short coming that way.

Good thought process, and good DD. Keep it up.Necessary in today's markets.

Of course their egos will get in the way, and more. Now their level of professional ability comes into play, and maybe we will discover just who leaked the info. One might "rat out" another to save their own sorry azz. The lawsuits against ARIA are now moot for the most part, and these "lawyers" can go suck eggs or pound sand bags.
One can easily see how this situation was "played" at this time. It took a lot of shares(140 MILLION to be exact) to do this to the PPS,.....and why did the retail investor not know this FDA info when the hedgies did. Hmmm.

And FMR is buying more buy the numbers!

You have the right frame of mind for this business, and will find it necessary to maintain same to survive.
Hedge funds can and do drive a PPS in any direction they want to. They buy,sell, short, and get a PPS to a level they want it at, then "control" the PPS with programmed trades. Some will deny this, but once you are in the "inner circle" on Wall St. it becomes apparent the hedgies all know one another.
Mary Jo White, current CEO of SEC Herself is adverse to HF Trading. She has said so. In relation to same HFT, one way to at least lessen the damage HFT does is to have a UPTICK Rule back in place.
Yes, we believe it may happen, but only after SEC is deluged with retail complaints.Problem is, the wall St. people have so much influence so as to keep the Rule in limbo. They want to keep it as status quo,i.e., no uptick rule. This for obvious reasons. It's unfair to retail investor, but very profitable to hedgies. They have the $$$$$$ and therein influence in Washington. Just the way it is. One must learn to trade this market the way it is, or get out.

GL.

A very good choice with such a great interest. You will do well.
Law is very,very stressful anyway,..too many B/S deadlines and more.
Unusual for BAC to be so far behind others of similar status in the financial sector. The uncertainty is mostly behind us now, so our conclusion is HFT for pennies. If you have not do so as yet, strongly suggest a visit to a hedge fund that has at least 6 traders, full time traders. It will amaze you. You will then see why a stock may not reach its' real value. BAC is a perfect example.
We believe the SEC should reinstate the Uptick Rule with a requirement of about .15-.20,..and add a tax on HFT shorting. This would allow a stock to get at least close to real value, add to its' market cap, and put more capital into the markets. It's a win win .

GL.

Exactly spot on!
Also, the fact that FMR is BUYING big lots should be enough to convince the "doomsayers" who believe the paid "bashers". FMR spends a fortune on DD PRIOR to any buy or sell.
Now then,we believe the FBI should be taking "statements under oath" from a number of persons right now. The FDA first, thence some hedge funds that had the pre programmed short sales in place. Once more , it was 140 MILLION shares that dropped in these short transactions. Where the hell do you get that many shares to short, and would you do it IF you were not sure of a drop. More than one hedge fund involved, and folks, they do know one another.
Lastly, look at the present manipulation going on.
Suggest one continue to "squall" to your congress persons frequently. DEMAND answers, and a thorough investigation.

GLTAL.

Yes, but big issue is that the SEC is controlled by politicians. The same politicians who have their own funds with the hedge funds. This is why SEC targets brokerage houses far more than hedge funds.

If a hedge fund has inside info, therein causing a flash crash per the 140 Million share drop we experienced, the same hedge fund(s) are as guilty as the person(s) who leaked the info. This is a felony, therefore political influence is at large. Suggest a "visual" on what is at stake here, thence enter the characters into the visual.
140 MILLION shares could not have been sold/shorted so rapidly UNLESS it was pre programmed! That means preset algos. The Exchange would have HALTED TRADING if this were a gradual drop!

Agree to your conclusion with a couple of exceptions. Namely,Mr. Paulson offered a bunch more $$$$$, AND "help" should any issues arrive. We read the contract. Yes, Lewis is a zealot and went all out but did so on a profit motive. The cost/benefit ratio has been good for BAC in relation to assets. Like about a 4 to 1 benefit. No one anticipated these legal expenses, and they should not be there. Simple;...a company's liability is determined basically by what they do AFTER acquisition, and specifically NOT what the company being acquired did PRIOR to the aforementioned.This is very specifically in the agreement contract as above. This is one reason the recent case in NY will no doubt be in the appellate courts before too long. An emotional jury, NY libs, and not a strict interpretation of the law via The Ruling Court.
You might want to consider law school. Suggest a visit to your school's law library and give it some thought. Key issue with any career is to do what you like and you will be good at it!

GL.

Yes "JG",...Yahoo message board. Agree the finance section has some O.K. info, but mostly B/S "analysts" with a personal agenda. Lots of paid bashers on Board as well. Same-same for certifiable "ILK" who attempt a Post by the use of liable, ... and slandering others they do not know.
A "class action" may be initiated by any group of 3 or more plantiffs. We know Mr. Moynihan and have utmost confidence in His ability, and knowledge of the Law to lead BAC.
Govt. does know this, but be advised they use the methodology to gain political favor. It's gotten that bad. Sad, but real world in Washington at this time.Fed is reducing expenditure on bonds as of this writing.We may see more aggressive action by BAC in a cross action given the reduced bond purchases. Banks are forced to set aside Billions for legal expenses, yes, and often quietly negotiate settlements AFTER a adjudication.At present we have spend over 50 BILLION on legal expenses for the C/W debacle.BAC was pressured into this mess by a Treas. Sec. Paulson, Obama, and a few others so as to gain political favor for votes ,..again. Unfortunately we cannot dismiss politics from the status of the financial sector.
Lastly a "lawsuit shield" can only come from a federal ruling at this time. A case with similar proximate cause, if dismissed with prejudice" cannot be filed and put on docket by same Plantiff again, or another Plantiff for the same cause. Shareholder loss to date is about $5.00 per share in dividend distribution ONLY for the legal expense. Does not include what would have been earned by BAC. Pretty sad state of affairs.

GL in school.

Yes, we Posted it yesterday on Yahoo from the suit against Wells Fargo.
Avoid Yahoo if you can,..way too many misanthropes there. Try to inform the seriously challenged there and they turn on you like the "ilk" they are. Not worth it.
Anyway, we saw this last night, but thanks anyway. Look for more cities to follow, Chicago, Houston Miami, Atlanta, then maybe some states as well. This MUST be stopped in the federal courts sysytem, and it is highly unlikely this alleged AG, Eric Holder will do this. The Petition for relief, whatever form would have to be filed by a banking lobby or similar. A class action by shareholders could do it as well. BAC may introduce some cross-action??? The legal system is being abused in this ongoing series of litigation, and this administration loves it. Believe it!

Fully concur:

Having experienced years inside the Beltway we have seen the real world of Wall St./Washington. There is a HUGE connection that only the newbie or very naive' would disallow in fact.Loathe politics within this Forum and will try to avoid same as best one can.
Problem is, the financial sector is "targeted" by a "administration" (sic) so hell bent on redistribution of wealth that it has become politically correct to attack banks! Look at the provisions in Dodd-Frank.Approx. 15% of our population cannot get a loan because they will not work, largely owing to welfare. BUT THEY VOTE!! Some more than once per election, and this bunch in Washington is very well aware of this. So you see, it is not a simple issue of factual proximate cause for a attorney to sue a bank right now. IT IS POPULAR, and these lawyers are often seeking attention for further, often political advancement. Look for City of Chicago to follow this precedent by LA. It MUST be stopped by a federal court via a Petition fled by the banking lobby/association. It IS out of hand being sanctioned by a (m)arxist group in D.C. Fact.

BAC is a very strong entity, and will prevail in time, but the uncertainty created by this series of wrongful suits will hurt all to include our economy, educations, retirements, and more.
GLTAL.