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New Film Exposes Naked Short Selling
by Paula Schaap ,Senior Reporter , August 3, 2009
The financial sector meltdown is barely a year old, but Hollywood is busy making films about it.
Oliver Stone is trying to find someone to play a villainous hedge fund role in his sequel to “Wall Street,” after Javier Bardem reportedly turned him down. Michael Moore is putting the finishing touches on his tour de force about the global financial crisis.
But the first film out of the box is “Stock Shock, The Movie,” helmed by independent film director Sandra Mohr. Mohr’s film company released it on DVD last week.
The movie explores the thesis that satellite radio company Sirius XM, which came close to bankruptcy in the Spring, was the target of market manipulation and naked short selling.
“It’s hard to tell who the actual naked short sellers are,” Mohr told HedgeFund.net, “but you come away with a clear idea of how short selling works.”
Mohr described the documentary as ending with a call to action to the Securities and Exchange Commission to enact regulations controlling short selling.
Last week, the SEC made an interim rule permanent that banned naked short selling.
Mohr who has a feature film and numerous TV episodes to her credit, said the impetus for “Stock Shock” was a personal one. In November, when she was casting about for companies to invest in, she researched Sirius radio, of which she is a fan.
“I was shocked that it was eleven cents per share when the number of subscribers was second only to Time Warner,” Mohr said.
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POLL OF THE WEEK
July 27, 2010
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