Replies to post #565155 on Fannie Mae-No Politics (FNMA)

[stckpkr7000]

Put in a limit order to sell your shares and they can't be borrowed for shorting. I once managed money for a living. Not trying to sound like an arse, but I know what I'm talking about.

[stoxjock]

Not necessarily.. That commenter said his firm did it 'anyway', thereby putting his firm 'on the hook' to return the shares to the actual owner... AIG sold CDS (Credit Default Swaps) too anyone and everyone who would buy them, putting their firm at a Huge Risk...We all know how that ended for AIG during the 2008 Financial Collapse... The same would happen to TDA or E-Trade or whichever brokerage firm that 'lends to shortselles'..If tomorrow suddenly FNMA Gaps up at $10.00 then that ShortSeller better 'return bac' the loaned shares by buying them on open market at $10/share, because IF that Shortseller for some reason goes BK and doesn't 'return back', then TDA/E-Trade/Brokerage's Neck is on the line to fork out its own money and busy them and Return them to the Long Investor's account.