Naked short selling & the super crimes of Wall Street
If you ever wondered how or why a stock price suddenly drops like a rock on incredible volume, or why executives battle damaging reports in the NY financial press and in analyst reports, see this video - but only if you want to know how Wall Street really works.
Wall Street has a profitable trading strategy that it has been carefully hiding, because it involves the destruction of companies. Just recently Deutsche Bank was found by the NYSE to have been selling massive amounts of shares it did not have nor deliver over a period of 22 months. This floods the market with "shares" and sucks out investors money - unbeknown to investors - and damages the companies - the more the better. This trading scheme is called "Naked Short Selling". And it is very profitable for those who do it. The more a company goes down - the more they make.
NYSE spokesman Scott Peterson said that Deutsche Bank sold "A LOT."
But this is just one example of many instances. Wall Street firms and hedge funds carefully hide this activity because it is amoral and illegal. But it is made possible because the regulators, while they know about it, do nothing and journalists and analysts help put out the needed messages.
Companies that need access to the markets or bank on their good reputation are choked off this way. It's easy money. Collect investor money, then kill the company.