Christopher Cox: In Search of Common Sense

Banning short sales? What next? I especially like this excerpt

Cox and the SEC are taking away profit — and creating new problems. First among those, is this any kind of a list that a bank wants to be on? Even if it does, the new rules unfairly protect a limited number of financial firms and leave others — Washington Mutual Inc. and Wachovia Corp. , to name a couple — exposed. “This naked short selling has been a pervasive problem for a number of years,” said Jane Storero, a partner and securities attorney at Blank Rome. The move to curb naked shorts for a limited group of firms “raises the question [of whether the move is] going to protect them or hurt them? Or is it going to hurt the next tier of banks?”

Here are the securities identified in the Commission’s order:

BNP Paribas Securities Corp. BNPQF or BNPQY
Bank of America Corporation BAC
Barclays PLC BCS
Citigroup Inc. C
Credit Suisse Group CS
Daiwa Securities Group Inc. DSECY
Deutsche Bank Group AG DB
Allianz SE AZ
Goldman, Sachs Group Inc GS
Royal Bank ADS RBS
J. P. Morgan Chase & Co. JPM
Lehman Brothers Holdings Inc. LEH
Merrill Lynch & Co., Inc. MER
Mizuho Financial Group, Inc. MFG
Morgan Stanley MS
Freddie Mac FRE
Fannie Mae FNM

People wonder sometimes why trend traders have drawdowns? Well, this is a great example. When the rules of the game are changed midstream by a government seeking to protect some one group for squishy reasons, trends can change.