New York AG launches probe of short-selling

[Mme. Defarge]

Source: AP

New York's attorney general says he's launching an investigation into whether some traders used illegal tactics to drive down the stock price of several Wall Street firms.

Attorney General Andrew Cuomo told reporters Thursday his office has received a "significant number" of complaints about short sellers, or investors who hope to profit by placing bets that a company's stock will fall.



Read more: http://news.yahoo.com/s/ap/20080918/ap_on_bi_ge/cuomo_short_selling

[CoffeeCat]

1. Short selling has been going on for decades....

Why is it such a concern now?

Are they worried that the 'average Joe' might make a buck or two--betting on the
downfall of the American economy?

Why was short selling ok before--when many savvy investors and rich folk were making
a killing doing it...but now, it's evil and awful?

I'm not saying that I agree with short selling. I used to work as a PR Director for
a high-tech company, and the short sellers would troll the company messageboard, on Yahoo,
and try to destroy the stock with rumors and all sorts of nonsense.

I'm just wondering why NOW--it's something that must be stopped?

[Mme. Defarge]

2. More from the article ...

Short-selling is not illegal. But Cuomo said he will focus on whether short sellers engaged in conspiracy or spread bad information to influence the stock prices of Lehman Brothers Holdings Inc., American International Group Inc., and other firms that have been hammered in the ongoing financial crisis.

"I want the short sellers to know today that I am watching. If it's proper and legal, they have nothing to worry about," Cuomo said. "If there's a conspiracy to spread false information to destabilize these institutions, that may very well be illegal."

Short-selling has been blamed for steep drops in the stock price of several companies, most recently Goldman Sachs Group Inc. and Morgan Stanley."

[superconnected]

4. They're not against short selling. They're against illegal practices to drive stocks down.

Which is typical wall street corruption they should be going after.

[Liberalynn]

3. Andrew Cumo

has so far been a great Attorney General for NY. IMHO.

I wouldn't mind him going on to higher offfice some day and hope he gets a chance.