Senators March Onward, United in Efforts to Strengthen Regulation SHO

In the Senate, the pressure is growing for SEC officials to strengthen Regulation SHO as they see it as ineffective legislation in providing for the curbing of the abuses of illegal short selling

(PRWEB) May 30, 2005 -- The anticipation of investors is steadily growing as June 6th approaches. This is the day when hundreds of investors across the country will march from New York City to Washington D.C. to demonstrate in front of officials at the Securities and Exchange Commission as well as the Depository Trust Company and many other ranking government officials. These investors will participate in National Counterfeit Conspiracy Day, a day designed to expose the issue of naked short selling. This crucial problem is the horrible practice that has financially devastating effects because of the selling of a security short without borrowing the necessary security to make the delivery. This failure to deliver the security is usually done with the intention to manipulate and create downward pressure on a companys stock price. It is estimated that the naked short selling scandal has caused billions of dollars of damage in the financial markets and has bankrupted many corporations.

In the Senate, the pressure is growing for SEC officials to strengthen Regulation SHO as they see it as ineffective legislation in providing for the curbing of the abuses of illegal short selling. It all started when naked short selling came into the spotlight during a hearing in the US Senate Committee. Senator Robert Bennett spoke about the issue of naked shorting with Chairman William Donaldson of the SEC. In his beginning remarks, Senator Bennet said that the SEC ...put out a new rule in January to deal with naked short selling, and as nearly as I can tell from my constituents, who feel victimized by this, it's not working." Senator Bennet then discussed an article about a little unknown company called Global Links Corp. and believes how it is representative of the practice of people still selling short shares that they don't have and clearly are never gonna acquire." In response, Chairman Donaldson tried to discuss the recently instituted Regulation SHO that helps to eliminate the naked shorting problem. To conclude, Senator Bennet stated that his main message was to help bring out evidence to show that the new regulations are not working.

To read the rest, log on to
http://www.antandsons.com/traderscorner/

# # #