The PIPEs Report - March 18, 2008

Participants Create New ARS Secondary Market

Auction-rate securities, the latest investment instruments to see liquidity evaporate in the credit crunch, are joining PIPE shares in the secondary market for restricted securities. Whether they hang around permanently remains to be seen.  Full story

SEC Attempts to Increase Pressure on Abusive Short Sellers

The Securities and Exchange Commission's intention to further enforce Reg SHO by crafting a naked short sale antifraud rule not only marks the latest effort to buttress ambitious short selling regulations adopted three-and-a-half years ago, but it also serves as an admission that Reg SHO has failed to significantly slow naked short sales or punish participants involved in the practice. Known as Rule 10b-21 of the Securities Exchange Act of 1934, the latest proposal is designed to put the hammer down on practitioners of abusive naked short selling. Full story

What the Securities and Exchange Commission thought would be a relief for the tiniest legitimate companies entering the public market, has instead created a new way to skirt rules governing shell companies. Full story

• SEC Claims No Change in Rule 415 Policy
• Lancer Group Managers, Shell Sponsors Indicted
• Northern Rock Freeze Pummels RAB Stock
• Layton Named CEO of E*Trade
• Pequot VC Arm to Split from Hedge Fund Group
• PIPE Accompanies Ambac's Public Offering
• Hirings & Firings