SEC delays action on credit rating agency rules

November 19, 2008 by · Leave a Comment
Filed under: Policy News 

Not too much of delay but they really need to get these rules in place.  Also I feel that a hard look should be looked at in terms of how the credit rating agencies played a part in this crisis.  If people broke the law, then they should have to answer for their actions.

News:

U.S. securities regulators on Wednesday delayed action on adopting stricter rules to rein in the credit rating agencies until Dec. 3.

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SEC head calls for transparency on credit default swaps (CDS)

October 19, 2008 by · Leave a Comment
Filed under: Economic News 

Its great to know that is takes a crisis with global implications to ruin many economies for us to finally to demand disclosure on these huge positions using credit default swaps (CDS).  The SEC head, Chris Cox even admitted that the $55 trillion credit defaults market is more than the GNP of all the world’s nations combined, and that credit default swaps “play an important role in the smooth functioning of capital markets.”  How can we even talk about this as it is a walk in the part.  I believe this is the central reason for the freezing in the global credit markets.  No one would want to deal with counter-parties that have this kind of exposure?  It will be very interesting in how the various government bodies decide to deal with this problem and the precedence it will set for decades to come.

News Release:

SEC Chairman Christopher Cox has called on Congress to pass legislation that would make so-called credit default swaps more transparent, including requiring that dealers in over-the-counter swaps publicly report their trades and the trades’ value.

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SEC extends short-sale disclosure order for added transparency

October 15, 2008 by · Leave a Comment
Filed under: Legal News 

I would like to see naked shorting stopped and enforced and if we can do it without forcing market participates to disclose their transaction data then I am for that as well.  Naked shorting seems to be the problem in manipulating companies without actually obtaining the shares to go short.  

Release:

On Wednesday the SEC said the short sale reports will supply the agency with important information about the size and change in short sales in particular companies by particular investors.

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Short sellers say stock market crisis during ban proves rout not their fault

October 7, 2008 by · Leave a Comment
Filed under: Stock Market News 

This is true, we have had the most volatility in the market during the times when we have had a ban on the stocks that have lost the most value overall, which is the financial sector.  People don’t seem to understand that short sellers actually help keep the market honest and closer to the stocks true value.  I hope they let the ban expired so we can get through this process quickly and then we can set a bottom and start building from there.  Dow 7,000ish and S&P 7-800 is what I expect unless things get real bad and then it is anyone’s call.

News:

A temporary U.S. ban on short selling has failed to stop the relentless sell-off of financial stocks, proving that the trading strategy is not to blame for the crisis shaking Wall Street, two veteran short sellers said on Tuesday.

 

James Chanos and William Ackman also said it wasn’t clear that when the ban expires at 11:59 p.m. Eastern time on Wednesday, how many institutional investors would lend their shares out to short sellers.

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SEC extends short sale ban to give Congress more time

October 1, 2008 by · 1 Comment
Filed under: Stock Market News 

All I have to say is the biggest drop for the Dow Jones Average happened with a short sale ban in place. It looks like our government is set on saving and propping up these failed banks instead of letting the market re-balance itself. I hope the SEC does adopt the “uptick” rule again. I was doing some reading on it and it did seem reasonable enough of a regulation that looks to do what it is set out to do.

Press Release:

U.S. securities regulators on Wednesday extended an emergency ban on short selling in more than 950 financial stocks to give Congress time to finish legislation to rescue the financial system.

The Securities and Exchange Commission said the ban would expire three business days after a $700 billion federal bailout bill was enacted, but would not last beyond October 17.

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