April 23, 2007
The REG SHO clearly is not working and does not prevent market markers or investors from manipulating the markets. As the smug Jim Cramer said on TheStreet.com/TV the Friday before New Years "Given enough capital and it does not require a lot hedge funds and their prime broker partners can move the market against any stock.
What the SEC has allowed to happen to NovaStar Financial is a crime. As of mid April 22.4 M legal shares have been shorted or 65% of the float and who knows how many FTD or counterfeit shares have been manufacturered.
The SEC should be ashamed of themselves and do not say this was allowed in the name of liquidity. Liquidity has zero to do with buying all the puts and allowing OMM to counterfeit a company out of the market.
This must be stopped enforce the SEC ACT of 1934 rule 17A and settle trades in a timely manner. Period.