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SEC cracking down on naked short selling?


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Check this out!

 

http://www.sec.gov/news/press/2009/2009-179.htm

 

Looks like that they caught some guys facilitating naked short selling with options. Just like what has been discussed by Deep Capture for Dendreon.

 

I don't know about them, but it would be really nice to expose the ones who facilitated the Fairfax naked short selling. It could help with the court case.

 

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Does anyone else think that cracking down on naked shorts is the reason for the huge rally in all of the worthless stocks (AIG, FRE etc.)?

 

I have always wondered if official short interest numbers include naked shorts. The last 48 hours have convinced me that they do not. There are officially 20 million shares short at AIG, but the stock has already traded 190 Million shares in the last two days (and this day isn't over).

 

I am curious if the board members think:

 

A) this has nothing to do with naked shorting

 

B) the huge rise in AIG is due to 20 million shorts covering, the rest of the volume is High Frequency Traders playing games

 

C) there is a huge amount of undeclared naked shorts in the system, the covering of which has just given AIG a $16 Billion dollar market cap

 

 

anyone (else) buying the very expensive AIG puts?

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Can't respond to you question about those particular stocks, but there are a few others I track that have definitely been hit hard by naked shorts in the past, including some that spent months on the Reg SHO list, that don't appear to have been affected one way or the other by this news.  Just sayin'.

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