When The Hedge Funds Start Shorting Bank Stocks, Will Gary Gensler & SEC Halt Short Selling?
The Hedge Funds are nothing but leaches. They succeed, when the markets fail. When hard working Americans loose their money in the stock market, these Hedge Fund manager buy baseball teams and huge mansions in the Hamptons. When they are done taking money from the retail investors, they go after the banks and when that happens, the SEC has to take some action, because the banks are loosing money.
Institutional & Retail investors who are long on stocks, find themselves in a precarious position because there is a so-called “sell off” . The bloodbath of the markets continues in 2022, while the SEC chair Gary Gensler is busy tweeting about his meetings and accomplishments, at the same time short sellers are joining in the market sell off frenzy, to tank stocks further to oblivion.
The retail investors are losing money and one of the ways to stop this downtrend is to temporarily band Short Selling. This Short Sell ban has been done before during the 2008 financial crisis. When the Hedge Funds could not steal from retail any more, they switched their predatory shorting to bank stocks and that’s when the SS ban was imposed.
The U. S. Securities and Exchange Commission (SEC) has a three-part mission: Protect investors. Maintain fair, orderly, and efficient markets. It’s quite obvious, that none of these three mission are achieved. Either these missions are “mission impossible” or the SEC just don’t care about retail investors. Lets take each of their missions and break it up:
During the the January 2021, GameStop short squeeze, the buy button was taken off retail investors and the SEC chair Gary Gensler has not charged any yet for it.
Maintain fair, orderly, and efficient market
DTC, FICC and NSCC are registered as clearing agencies with, and regulated by, the U.S. Securities and Exchange Commission, but the Fails to Deliver ( FTD ) keep on piling up and the SEC has done nothing about it.
The Short Interest of Stocks are over 50% and the SEC has done nothing about it. Example : According to MorningStar the Short % Float of $BBBY is 84%. How is this maintaining fair , orderly and efficient markets?
Payment For Order Flow: Gary Gensler himself stated “If you place a retail market order, 90-95% do not go to lit exchanges. They go to wholesalers”. Is this maintaining fair , orderly and efficient markets?