8,500 banks ask for SEC (“Securities Exchange Commission / 美國證交會”) help !!!

Date : 20th July 2008 (Sunday)

Source : Oriental Press (東方日報)

Topic : 8,500 banks ask for SEC (“Securities Exchange Commission / 美國證交會”) help !!!

ABA (“American Bankers Association / 美國銀行家協會”) representing the interests of 8,500 US banks sent a letter to SEC for help.

Upon the financial crisis caused from the two largest MLP (mortgage loan providers) in the US - “Fannie Mae and Freddie Mac” (房利美和 房地美), SEC restricted the nineteen financial listed co. of “No stock to sell short” (無貨沽空),e.g. the two MLP, Goldman Sachs, Citibank, Merill Lynch, JP Morgan, UBS, HSBC and etc.

However, the “stock crocodiles” are intended to squeeze the listed prices of other than the nineteen financial institutions. Their means must sell a lot of those shares without stocks in hands (Sell short). Many US banks faces the rapid decrease in market share prices in nearer future.

Thus, ABA asked for SEC's help to treat the same way as the selected nineteen financial institutions.

My comment :

The collapse of financial market in the US is going at larger extent and more seriously. The multiplier collapse of financial wealth is being accelerated.

Who's the next of "victims"? That would be my vital concern - PRC, HK, Macau, Taiwan, or the World ?!