Failure to Deliver

[otherottawaguy]

Just in case you don't read the other board....

We had been discussing this on another thread but thought that I would through it up as a fresh topic. I went to the following website and downloaded the data avail for 15 May, not sure when its scheduled to be updated.

www.sec.gov/foia/docs/failsdata.htm

The link to the most recent data is at the bottom of the page. I downloaded the file and filtered for MNKD and MNDKW and it shows about $55M or about 6.5M shares as not being delivered (OOPS).


SETTLEMENT DATE CUSIP SYMBOL QUANTITY (FAILS) DESCRIPTION PRICE Value Tot Val
20140515 56400P201 MNKD 49098 MANNKIND CORP 7.01 344176.98
20140516 56400P201 MNKD 20398 MANNKIND CORP 6.93 141358.14
20140519 56400P201 MNKD 697030 MANNKIND CORP 7.02 4893150.6
20140520 56400P201 MNKD 524529 MANNKIND CORP 7.39 3876269.31
20140521 56400P201 MNKD 676827 MANNKIND CORP 7.57 5123580.39
20140522 56400P201 MNKD 957834 MANNKIND CORP 7.81 7480683.54
20140523 56400P201 MNKD 588515 MANNKIND CORP 7.76 4566876.4
20140527 56400P201 MNKD 790828 MANNKIND CORP 7.77 6144733.56
20140528 56400P201 MNKD 812852 MANNKIND CORP 8 6502816
20140529 56400P201 MNKD 986391 MANNKIND CORP 8.17 8058814.47
20140530 56400P201 MNKD 385782 MANNKIND CORP 8.55 3298436.1
MNKD Shares
6490084
$ Value
50430895.49


20140519 56400P508 MNKDW 44 MANNKIND CORPORATION WARRANTS 2.98 131.12
20140520 56400P508 MNKDW 44 MANNKIND CORPORATION WARRANTS 3.16 139.04
20140521 56400P508 MNKDW 44 MANNKIND CORPORATION WARRANTS 3.24 142.56
20140522 56400P508 MNKDW 3441 MANNKIND CORPORATION WARRANTS 3.35 11527.35
20140523 56400P508 MNKDW 6991 MANNKIND CORPORATION WARRANTS 3.38 23629.58
20140527 56400P508 MNKDW 8286 MANNKIND CORPORATION WARRANTS 3.3 27343.8
20140528 56400P508 MNKDW 200 MANNKIND CORPORATION WARRANTS 3.47 694
20140529 56400P508 MNKDW 1884 MANNKIND CORPORATION WARRANTS 3.51 6612.84
20140530 56400P508 MNKDW 2807 MANNKIND CORPORATION WARRANTS 3.74 10498.18

MNKDW Shares
23741
$ Value
80718.47

Enjoy the ride,

OOG

[MnkdMainer (MM)]

How is this allowed to happen? Can someone with knowledge discuss the implications?

[mannmade]

Yes I believe this has now shown up on a SHO List/Report of some kind which the SEC supposedly watches which I have heard is now supposed to make it harder for the shorts to continue without first having trades settle. (Am not sure how all this works...)

Failure to deliver

Traders on the floor of a stock exchange
In finance, a failure to deliver (plural fails-to-deliver) is the inability of a party to deliver a tradable asset, or meet a contractual obligation. A typical example is the failure to deliver shares as part of a short transaction. The Securities and Exchange Commission publishes "fails-to-deliver" data regarding transactions in the United States.[1]

As a remedy for this in the United States, Regulation SHO was designed.[2] Stocks bought and sold in transaction must be settled within 3 days. The buyer must deliver the cash and the seller the stock. If either party fails, a failure-to-deliver takes place.[3]

Sometimes deliberate fails-to-deliver are used to profit from falling stocks (see Bear market), so that the stock can later be purchased at a lower price, then delivered, e.g. in the week of March 10, 2008, just before the failure of Bear Stearns, the fails-to-deliver increased by 10,800 percent.[3]

According to CNN in the US markets, fails-to-deliver had reached $200 billion a day in September 2011, but no similar data has been available for Europe.[4]

[BD]

Perhaps better known by the term "naked short selling", fails to deliver have been a gaping loophole that has been exploited by unscrupulous shorts for years, probably most often employed when a company is going bust and ultimately gets de-listed, so that there's never any need to "deliver". Reg. SHO is intended to police that.

My friend Mark Faulk made a movie about it:

vimeo.com/39748584

That isn't the movie, it's an interview of Mark talking about the movie. Here's the movie:

thewallstreetconspiracy.com/

[ashiwi]

Is this "failure to deliver" the reason that MNKD stock is harder to short at the moment?
According to my Fidelity acct it states that shares are "hard to borrow" Availability is Limited and interest charged is 15.75%

[kc]

So how long does they broker give them time to clear? I would guess it was be fast or they would be decleared insolvent? I can see a big broker like Merriel or Goldman having a lot of float power but eventually they will call the chips in off of the hedge fund.

[mannmade]

That is my understanding as now it is on the radar of the SEC for naked shorting... Shares traded before they settle...

[kc]

So nothing will happen now that its at the SEC!   I wonder where George Soro's is on the Naked Short (behind it I would guess). 

What is naked short selling:

It is selling stock in a public company that you do not own and you never deliver to the buyer. Honest people call this stealing. This is done daily by many big banks for themselves and/or their customers.



How can this happen in today’s environment

30 years ago stock physically changed hands in person between a buyer and a seller on Wall Street. Today, it is done electronically. In many cases, the stock is sold electronically but never delivered. In essence, our system has trillions of dollars of stock IOU’s that will never be collected.



What is the scope of the problem?

It is the belief of many experts and others that trillions of dollars have been stolen from hard working Americans by selling them counterfeit stock that does not exist. This unscrupulous conduct still exists today.



What are the consequences to average Americans of naked short selling?

Naked short selling: a) steals money from hard working Americans by selling them counterfeit stock; b) destroys good public companies that have products that can make all American lives better; c) has destroyed millions of jobs by destroying these same companies whose stock is being manipulated.





Naked short selling has led to turmoil and unnecessary volatility in our markets worldwide by creating counterfeit shares which have destroyed companies and left wrecked lives in its wake. Big banks and their clients have been incentivized to kill companies rather than build them up as a surer way to profit but these actions also have led to massive disorder in exchanges around the world, threatening our entire financial system.

[MnkdMainer (MM)]

Thanks to all for your comments. And the show goes on ...

[dejude42]

Pulled from the past, Dec 31 2016 still happening

[tmann]

Naked Short Selling, massively documented. www.deepcapture.com/category/4-the-crime-naked-shorts-other-insincere-ious/