http://www.cnbc.com/id/26763835/site/14081545/ Got to think that the hedgies are none to happy about this development.
Why would they? They are making a killing bankrupting US companies. The biggest crooks are GS hedge funds. Funny thing is now GS is naked shorting itself.
Yeah, and with this potential change in the rule the short sellers–at the margin–are likely to pull back, at least in the very, very short term.
“They are making a killing bankrupting US companies.” Right, blame it on the HFs. The evil HFs are killing our stock. We are a sound and stable financial institution. We are victims of evil short-sellers who are nothing but rumor-mongers. LOL. ye ok.
i’ll just sell a call and buy a put… guess what i’m synthetic short… or i’ll call an offshore bank, enter into a short XYZ swap with them. only adds exposure. congrats… more OTC derivatives.
MFE Wrote: ------------------------------------------------------- > i’ll just sell a call and buy a put… guess what > i’m synthetic short… or i’ll call an offshore > bank, enter into a short XYZ swap with them. only > adds exposure. > > congrats… more OTC derivatives. It should cost more to sell short if you borrowed the stock than if you had sold naked – if the naked selling is finally stopped this premium (cost to borrow) will be priced into any derivative package you create.