[Zhang Fei]

I wonder if the hedge funds are getting margin calls on their computer trades since no one seems to be following the rules. What makes you think the apply them to anyone but individual investors.

For one thing, the prime brokerages from whom they have margin loans and with whom they are holding these positions would shut them down and liquidate their assets. Just like a normal brokerage.

[A Strict Constructionist]

I have to admit I’m very suspicious of WS these days. I wonder if they could stand close scrutiny by law enforcement?

[A Strict Constructionist]

http://www.fool.com/investing/high-growth/2005/03/24/the-naked-truth-on-illegal-shorting.aspx

I would be very interested in your comments about this article on naked shorts.