No diversion what's so ever and would completely agree that such a thing would be illegal. I don't believe anyone ever said anything about it being a legal practice that could be backed up with a SEC reg. That's kinda of the point. SEC allowances taken advantage of through loopholes left open for far too long. Legal or illegal matters very little if the end result remains the same. Those results of course being the requirement for such things to be covered when certain structural changes occur. Whether or not those doing it (IF) can afford the repercussions of having to cover is inconsequential. They'd be held accountable by those covering them but either way the one's holding the shares would still win.
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