Items Tagged with 'Short selling'

ARTICLES

  • SEC Gets Tough on 'Naked' Short Sales

    The Securities and Exchange Commission (SEC) on Monday made permanent a rule against so-called "naked" short sales in the securities market and detailed some short sale reporting initiatives it said will increase transparency of the practice. In a "naked" short sale, the investor short sells shares it has yet to borrow. The practice, although blamed for pushing down stock prices through speculation alone, was permitted as long as no legal requirement forced short sellers to borrow the shares before selling them short.
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  • Senators Push for Rule Against Short Sales

    Sen. Ted Kaufman, D-Del., in his first bill proposal since being sworn in to Congress in mid-January, submitted to the Securities and Exchange Commission on Monday a bipartisan legislation that aims to reinstate the so-called "uptick rule" that prohibited short sales from the Depression era until its repeal in mid-2007.
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  • Study: Extreme Overvaluation Wiped Out by Housing Price Drops

    Steep housing price declines have largely wiped out widespread extreme overvaluation of residential real estate, according to a new study released Thursday morning. Global Insight, an economic forecasting and financial analysis firm, said its Q2 update of housing valuation analysis found that home prices continue to fall across the country but at a slower rate than observed previously.
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  • What if losing was outlawed altogether?

    As we continue to see bail-out after bail-out, and government programs designed to prop up a market in dire need of correcting itself, MarketWatch's David Weider gets to an end-game: why not just outlaw selling stocks at a loss altogether? It's got all the features lawmakers love: it keeps up on the upward slope, and does so without using taxpayer dollars, either.
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  • SEC, Fed Move to Bolster 'Fragile' Market

    A financial sector that has been battered recently by credit and liquidity concerns saw its fortunes brighten at least temporarily on Wednesday morning. Moves by both the Securities and Exchange Commission and the Federal Reserve on Wednesday served as the latest attempt to prop up a broad financial system that's been searching for -- and, so far, not finding -- a bottom to an ongoing credit crunch.
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  • Fannie, Freddie Shares Saved by SEC Short-Selling Order?

    Battered shares in housing finance giants Fannie Mae [stock FNM][/stock] and Freddie Mac [stock FRE][/stock] have seen their fortunes swing wildly in the past few weeks: on the precipice of the unthinkable a few weeks ago, share prices in both government-sponsored entities have surged in the past few days as investors seem to have sloughed off fears of an imminent collapse amid a plan by officials at the Treasury and Federal Reserve to provide rescue to both GSEs -- should it be needed.
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  • Report: Many Lenders Hold 'Unrealistic' Price Expectations for REO

    American Banker's Kate Berry has a great lead today on how lenders' unrealistic price expectations are hurting the REO sales market -- and, by extension, the rest of the housing market. As REO inventories swell at most institutions, many sellers simply haven't adjusted their pricing expectations downwards enough to account for where many markets have been heading (sounds familiar to the consumer resale market, doesn't it?).
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  • OFHEO Looks to Lower Conforming Loan Limits

    The Office of Federal Housing Enterprise Oversight released proposed guidance yesterday covering the calculation of conforming loan limits. If implemented as proposed, OFHEO's guidance would ostensibly lead to a decrease in the conforming loan limit -- if home prices drop by more than 0.84 percent this year. I think.
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  • Countrywide CEO Continues to Unload Stock

    According to SEC records reviewed by Housing Wire, Countrywide CEO Angelo Mozilo has continued to exercise stock options at a frenetic pace. Mozilo exercised options on and promptly sold 70,000 shares yesterday, according to SEC records, in a transaction that netted over $1.9 million. That sale came on the heels of an April 16 firesale that saw the Countrywide CEO divest an additional 46,000 shares in a transaction worth approximately $1.1 million. Mozilo also sold an additional 116,000 shares on April 11 in two separate transactions, bringing his total net proceeds to roughly $7 million in the most recent insider-selling binge at Countrywide.
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