Friday, August 21, 2009
Ready, Aim, Misfire!-2
"The [SEC] accused two options traders and the brokerages for which they worked of violating short-selling rules, in what the agency billed as the first case of its kind. The people and companies settled the cases with the SEC and paid fines without admitting or denying wrongdoing, the commission said Wednesday. ... Since last year, the SEC has tightened short-selling rules. ... In one of the settlements, the SEC alleges that Steven Hazan, 31 years old and owner of Hazan Capital Management in New York, from 2005-2007 used a series of 'sham' transactions to avoid complying with trade-completion requirements. During that time, the firm improperly made at least $3 million, the SEC said. ... The SEC also thanked the [FINRA], the securities industry's regulatory body, for its assistance. ... In a separate case, regulators charged Michael Benson, a trader with Chicago trading shop TJM Proprietary Trading LLC, with naked short selling. ... TJM agreed to pay back $541,000 it made from improper gains", my emphasis, Kara Scannell at the WSJ, 6 August 2009, link: http://online.wsj.com/article/SB124950098687008637.html.
I expect the SEC to rarely do anything useful. These two cases together do not meet my Blankfein Test. Why bother? Whose ox was gored here? It's nice to see Mary Schapiro (MS) pat herself on the back for a useless job well done. Wasn't MS FINRA's head before she went to the SEC? It doesn't seem to matter who heads the SEC. It's useless. See my 19 July 2008 post: http://skepticaltexascpa.blogspot.com/2008/07/ready-aim-misfire.html.