IOHO NAKED SHORT SELLINGby hedge funds are killing this and other banking sectors. When will the market and the SEC get wise and control this abuse...BEFORE THE MARKET COMPLETLY COLLAPSES. Short selling must conform to normal transaction rules ..subject to the three day delivery standards.
SEC Have placed controls on NAKED short selling on some US financials.....ie selling short without any actual stock..based only on speculation....virtually gambling at someone elses expense. Look how the market has taken a positive upturn ..based on fair investing. The SEC want comments as to wheather controls on NAKED shorting should be controlled or even completely restricted. Go to SEC on line if you have any views.. We have.."Get rid of Naked shorting.' but do your own D/D.
"Short sellers aren't killing the banks. What is killing the banks is poor lending standards. They should tend to their own house and blame others for their own failures."
Sadly, that's true. It was lax lending standards that got the "credit crisis" started in the first place.
Nonetheless, not all banks are the same. Some were more conservative than others in their lending practices. However, given the current mood of the market, financial stocks have been sold off across the board. A lot of solid financials have also been dumped with the irresponsible ones. Case of throwing out the baby with the bath-water.
Question is, what is LYG? Baby or the bath-water?
Time will tell, as this credit crunch works itself out, and banks quarterly reports come in.