SEC Chairman Cox to Convene Meeting of International Regulators
Agenda Includes Short Selling, Derivatives Regulation
FOR IMMEDIATE RELEASE
Washington, D.C., Nov. 20, 2008 — Securities and Exchange Commission Chairman Christopher Cox today announced that he will convene a meeting of the International Organization of Securities Commissions (IOSCO) Technical Committee on Monday, November 24 by teleconference to discuss urgent regulatory issues in the ongoing credit crisis.
"In addressing turbulent market conditions, it is essential not only that regulators act against securities law violations, including abusive short selling, but also that there be close coordination among international markets to avoid regulatory gaps and unintended consequences," said Chairman Cox. "This high-level coordination among international regulators will allow us to review the steps we have taken thus far and ensure that our ongoing and future actions are effective and mutually reinforcing."
The Technical Committee meeting will consider:
Short Selling — Consider the effectiveness of recent regulatory responses in reducing manipulative short selling without stifling legitimate short selling activity, and explore possible coordination on rules relating to naked short sales, in particular with regard to position reporting and delivery and pre-borrowing requirements
Under-Regulated or Unregulated Products — Develop disclosure principles to promote transparency in OTC markets for derivatives and other financial instruments which will contribute to enhanced investor protection and mitigating systemic risk.
The meeting also will focus on:
Credit Rating Agencies — Assess members' progress in adopting rules based on IOSCO's revised Code of Conduct, and accelerate work on developing a common examination module.
International Accounting Standards — Ensure that the process of developing international accounting standards continues to take account of the interests of investors.
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As I said in my post yesterday, this action will result in no action. Reports will be presented by the working groups in Feb and June. By then Cox will be long gone, his cronies will have made their money and his successor will be left to try to correct a broken and flacid SEC.
Do you really think Obama just naming a fed head - Geithner - caused the markets to completely reverse their move to 7200 and to rally 400 points. A guy that won't even take office for a month? Come on people - use your heads. There is one saying in the market that is ALWAYS TRUE - Don't fight the fed - Their pockets are always the biggest around.
And if for some reason their pockets aren't big enough... ALL THEY HAVE TO DO IS CHANGE THE RULES OF THE GAME - which seems like it is going to happen BECAUSE NO MEDIA HAS REPORTED THIS MEETING.
I am glad and hopeful that they are going to buy some of Citi's real estate assets, particularly CMBS. I thought it was a huge mistake for them to back off of this in TARP when that was the reason for starting TARP in the first place. Well, you saw what happened after Paulson announced he wasn't going to do it. Commercial market crashed again. Unfreezing commercial credit is dependent on getting these toxic assets priced, sold and off the balance sheets of institutions. But, now they are worth less because of Paulson's actions. How can you reestablish capital ratios when you are taking actions which reduce asset value? I am losing a bit of respect for the competence of Paulson. I think he has given up and is just marking time until the end.
I have bought thousands of shares of sfi pfd in the last couple of weeks and I own thousands of NRF also. I believe in the approaches of both companies along with their balance sheets. Hamamoto seems to have a great grasp of the economy and his companies...so this leads me to wonder why he is buying so much of the MHGC stock opposed to NRF whcih it appears to me to be the better buy...any opinion...
Bottom line: "You want order restored, the markets to work again, an end to the endless sowing of fear? Then bring back the rules we put in place to avoid another Great Crash. The uptick rule wasn't broken, but the SEC 'fixed' it and put the 'fix' in for the shorts. It's time to give the longs back a level playing field, stop the rigging of the market by the shorts, and bring capitalism, not capital destruction, back to our markets."
Chris Cox has proudly refused to reverse himself on the uptick rule. He's not going to backtrack now and admit he was wrong at the end of his term. I think to expect anything helpful from him is wishful thinking. This is just show. We are not going to get any help from the SEC until the new administration.
The meeting comes as Citigroup Inc. and other big banks are lobbying the SEC to reinstate a temporary ban on short selling stocks in financial companies, which have seen their shares relentlessly hammered during the market downturn.
If Chris Cox and his other SEC cronies would restore the uptick rule and stop this aggressive, criminal shorting then at a stroke all this mess might be stopped. I hate what the greedy bankers have brought us to but do you seriously want an institution like Citi to go down? If so you are as crazy as those SEC morons who couldn't regulate themselves out of a paper bag. Greetings from the UK!!!
SUPER MEGA BUY BUY BUY in AM. They are going to have to report this soon it's already making the net in ABK and now SFI. LOAD UP NOW. And me with only with enough shares to place in the top 10% of fund ownership - BWAAAHAHAHAHAHAHAHAHAHAHAHA
Great News Thank You! Kills me like they all of a sudden realized that there is abusive short selling! In my opinion the Citibank Stock price has brought this on...About Time hope something comes oput of this meeting...