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

[bartermania]

Two More Lawmakers Question Reg SHO Failure

May 25, 2005
Sens. Richard Shelby (D-Ala.) and Susan Colins (R-Maine) have joined the growing list of lawmakers who want Securities and Exchange Commission Chairman William Donaldson to explain why Regulation SHO has failed to put an end to naked short selling. In a naked short sale, short sellers, which are often investment managers or hedge fund operators, do not borrow the necessary securities to make delivery of the trade.

The new additions are seen as bringing significant heft to the campaign; Shelby is chairman of the Senate Banking Committee, while Colins chairs the Homeland Security and Governmental Affairs Committee. The other two crusading lawmakers are Sens. Robert Bennett (R-Utah), the Republican whip, and Richard Durbin (D-Ill.) assistant Democratic leader. One issue is potential loopholes in settlement regulations.


here's the link: http://www.compliancereporter.com/default.asp?page=1&SID=508468&ISS=16028&pressbox=1