Thursday, September 18, 2008

And the hits just keep on coming

You just had to know this was coming:
NEW YORK - New York's attorney general says he's launching an investigation into whether some traders used illegal tactics to drive down the stock price of several Wall Street firms.

Attorney General Andrew Cuomo told reporters Thursday his office has received a "significant number" of complaints about short sellers, or investors who hope to profit by placing bets that a company's stock will fall.

Short-selling is not illegal. But Cuomo says he will focus on whether short sellers engaged in conspiracy or spread bad information to influence the stock prices of Lehman Brothers Holdings Inc., American International Group Inc. and other firms that have been hammered in the ongoing financial crisis.

As the article states, short selling isn't illegal. But you can rest assured that since there are political points to be made by punishing the people "responsible" for this economic meltdown, they WILL find conspiracy. Whether or not the conspiracy actually exists is irrelevant. The one rule of being a state AG (especially in NY) is to never miss an opportunity to abuse your office's power through pandering in an attempt to gain higher office.

Where's an escort or two when you need one?