Replies to post #7943 on NSS ~ Counterfeiting Stock ~ MM Games Played

[AlanC]

Well my common sense tells me that when regulators realized how bad the situation really was they had a hard time agreeing on a course of action. The first step was to prevent Penson from trading/clearing any stock under .10. They had to hope that lots of folks would sell to take losses lessening the monstrous short positions in manhy stocks. They then began prosecuting the scam operations and cracking down whereever they could. They revoked registrations where they could preventing those that had huge short positions from growing larger knowing full well that some innocent investors and companies would be hurt in the process but figuring that some would actually be helped. The problem is monstrous and we are just seeing the tip of the iceberg. I look for those 5000 arrest warrents the US Attorney General talked about being issued and a huge roundup of bad guys taking place.
No doubt this is going to take some time but I think we will see a lot of criminals prosecuted over the next 12 months some of whom will be "dirty" regulators who aided and abetted this criminal operation. Interesting days ahead to be sure.