On January 9th ABC World News and Nightline featured a Brian Ross investigative report focused on Chinese stock fraud. A*L contributed to portions of the story and Jon Carnes is interviewed.
More mainstream media attention to the billions of investor dollars stolen by corrupt Chinese companies is probably what it will take to get U.S. securities regulators to take a tougher stand.
You can watch ABC’s reports by clicking this link or the following image:
they can easily stop it.
they just need to make the brokers/bankers/hedgefunds/investment banks take responsibility for all frauds that came from their ipo/rto/offerings.
if they do then the bankers cannot escape they will either need to take the losses and go bankrupt or take on insurance themselves aka puts shall we say instead of the public.
very easy to prevent this.
the financial industry you traders are in wont like it though and it will prevent more shorting opportunities so you might not like it either.
dont even need to go to china.
any auditor from the usa approving it will take a major hit if they don’t deal with it and make sure they are all clean FIRST before ipoing it
nyse and all the financial sector is doing this like they are doing mortgages in the 2008 crisis.
because they are off loading it to other suckers they dont care.
hence the brokers are responsible for this whole mess with china.
ebay + paypal even offer money back guarantee if they are scams then do that as well.
once trust is lost it is hard to earn back. it is like these events are intentional to bash china though as I agree gov is corrupt.
investigators can still investigate just that they are very lazy and want easy money.
this is my suggestion. since Jon seems well connected suggest this to the sec to get their butts off and force the brokers to implement a money back garuntee for bad ipo/offerings/rto for a certain amount of years.
thus they have some skin in the game. money incentives wont work thus we need to punish the financial sector that is like a vampire squid stealing money from the world. they produce nothing yet take too much of the profits thus leaving the world destitute,
and yes I do not agree with your methods alfred little
my method will solve this problem with the least people getting hurt by it.
I strongly agree with you that the auditors, bankers and exchanges making all the money on the public listings should be responsible and reimburse investor losses in cases of outright fraud.
Thank you for your terrific reports on DEER. I still own approximately 900 shares. Why didn’t I sell them before the NASDAQ de-listed DEER? Morbid curiosity perhaps? Now I see that DEER is listed again (Jan 11, 2013). It “closed” at $0.35 per share. Why did the SEC allow this? I can’t find any information. Once again, thank you for your terrific research.
Thank you for the kinds words. I think investors often trust that the SEC vets companies such as DEER before they are listed on the U.S. exchanges. This is not really true. Companies complete paperwork that is reviewed by the SEC. The paperwork could be full of lies and the SEC really has no way of knowing. Only through on-the-ground due diligence and investigation can anyone find the truth. I am sorry you lost money on DEER.