The Real Cure for Naked Short Selling
By Ivy SchmerkenSep 22, 2008 at 01:14 PM ET
One of our readers has commented on the story "SEC Bans Short Selling in Financial Stocks in Wake of Criticims," posted , Friday. Here's what the reader had to say:
Bringing back the uptick rule would help. But the real cure is enforcement of real penalties - three times the profit from both the seller and the seller's broker (for failing to insure the seller had the shares available for settlement prior to the short sale being executed.) Maybe class actions against naked short seller allowing those damaged to recover their losses - and some jail time. You can hide your money in the Bahamas but if you're in the Federal Pen it isn't doing you much good.
PS: I believe in capitalism and free markets when its a level playing field and everyone plays by the rules.
Topics: Ivy Schmerken
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