From the The Mirror, a UK tabloid:
This is the US billionaire whose greed has helped bring HBOS to its knees.
Philip Falcone, who recently bought a £24million home that has a room for his pet pig, is said to have made hundreds of millions gambling that the British banking giant’s share price would plummet.
But as his investment fund has cashed in, there has been misery for HBOS workers whose jobs are under threat and millions of small investors who have seen their share nest-eggs dwindle. Falcone, nicknamed the Midas of Misery, has made so much money that he bought his New York apartment for CASH.
From John Mack, chief executive of Morgan Stanley:
What’s happening out there? It’s very clear to me-we’re in the midst of a market controlled by fear and rumors, and short sellers are driving our stock down. You should know that the Management Committee and I are taking every step possible to stop this irresponsible action in the market. We have talked to Secretary Paulson and the Treasury. We have talked to Chairman Cox and the SEC. We also are communicating aggressively with our long-term shareholders, our counterparties and our clients.
From London’s rumour wires on Thursday:
mkt rumour; institutions to halt lending financial and insurance stocks.
So everyone seems to agree - those shorting financial stocks are bad people who need to be stopped.
Now SEC chairman Christopher Cos is looking to impose three new rules aimed at stopping a tide of short selling that will come into effect a minute after noon on Thursday in New York. A specific aim is to force much more disclosure by hedge funds.
But does no one see the irony of the head of bulge bracket investment bank accusing his customers of market abuse and egging the regulators to impose ever greater restrictions on them? Sell Mack.
