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Bangladesh Suspends Brokers For Selling Shares Into Third Market-Halting Stock Market Crash

Tyler Durden's picture





 

It was ten short days ago that the Bangaldesh stock exchange was closed for the 2nd time in a month, after it plunged by almost double digits in the span of minutes. Subsequently, it pulled as US-type flash crash, PPT-sponsored HFT recovery.... only to make third time the charm: BBC reports that earlier today the Bangladesh index fell 8.5%, or 587 points, which
forced regulators to suspend trading.This is the third suspension in a about month and the second free fall plunge in January. Everyone in Asia is getting spooked by China's lack of liquidity. But not the US. We are all hoooou kay. But that's not all. The chery on top is that the Bangladesh regulator, which more than anything is in dire need of its own plunge protection team, or least GETCO to serve as "DMM" (wink wink) for the entire exchange, has suspended brokers for having the temerity to sell into today's collapse. In other words: next time someone tries to sell into a market plunge, tough luck.

From the BBC:

Bangladesh has suspended six trading houses on the main Dhaka Stock Exchange.

The move came after a fall on the index of 8.5%, or 587 points, which forced regulators to suspend trading. This was the second such plunge this month.

Angry investors threw stones at police and smashed vehicles in protest at the suspension of trade.

The Commission has placed a six month ban on the six companies over charges of market manipulation.

"We have found that these brokers have sold huge shares at abnormally low prices just after the market opened," Securities and Exchange Commission member Muhammad Yasin Ali told the Associated Press.

And don't think the porn fetishists at the SEC are not keeping tabs: they may be poor, and they may be spending all their taxpayer appropriated money on a T-100 feed to midgetporn.gov but that doesn't mean they are completely retarded. Actually, we scratch that. That said, for all those hoping to flip that grenade to another greater fool the next time the US market has a wipeout, they may not be so lucky.

h/t hedgedin

 

 


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Fri, 01/21/2011 - 14:58 | Link to Comment JLee2027
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LOL. Anything to keep the Ponzi going.

Fri, 01/21/2011 - 14:59 | Link to Comment NOTW777
NOTW777's picture

waddell & reed did you see this

Fri, 01/21/2011 - 15:01 | Link to Comment Cdad
Cdad's picture

Why worry?  I just heard an X NFL "Special Teams" player claim that folks were buying upside March calls in the world's largest bank in charge of manipulating silver and writing fraudulent mortgages...so what do you mean the market will fall? 

Really Tyler, you need to spend more time looking for and listening to options junkies....'casue if you did, you would feel a lot better about things. 

And anyway, Jeff Immelt is going to Washington...so have faith!

Hello FUCKING COSMIC BUNNY HOLE!

Fri, 01/21/2011 - 15:01 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

It's like trying to oil up a cucumber for display on the grocery store shelves. The more oil you use, the slippery the cuke gets, the harder you try to hold on, the more tenuious your graps is.

ZH perverts will have a really good time with this analogy. :>)

Fri, 01/21/2011 - 15:04 | Link to Comment bigdumbnugly
bigdumbnugly's picture

you rang?

i will leave this one to the female commentors however.

Fri, 01/21/2011 - 22:19 | Link to Comment squexx
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I had a better time with your sister! She did n't cost much but made me wear a raincoat!

Fri, 01/21/2011 - 15:05 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Rick Santelli just mentioned Zero Hedge and SHIBOR live on his CNBC Bong Bond Report.

Since when is it OK to mention ZH on the propaganda channel? Watch out Tyler, you're going mainstream whether you want to or not.

Fri, 01/21/2011 - 15:05 | Link to Comment besodemuerte
besodemuerte's picture

I just did a double-take when I overheard that as well CD.  ZH is mainstream now, guess I have to stop coming here.  Sigh, it was fun.

Fri, 01/21/2011 - 15:24 | Link to Comment cougar_w
cougar_w's picture

He did? Did he specifically comment on my mention that the SHIBOR is actually tied to a donkey's tail? Did he? Cuz I think that was brilliant technical analysis on my part. Imma player, yeah.

Fri, 01/21/2011 - 15:29 | Link to Comment besodemuerte
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I think they forgot to include that part of the dialogue on TV, although I'm sure he mentioned it.

Fri, 01/21/2011 - 15:03 | Link to Comment NOTW777
NOTW777's picture

rickster covers SHIBOR - liquidity

Fri, 01/21/2011 - 15:04 | Link to Comment NOTW777
NOTW777's picture

GOOG 623ish

Fri, 01/21/2011 - 16:08 | Link to Comment Captain Kink
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AOL > Yahoo > GOOG > Facebook > Next?

Fri, 01/21/2011 - 15:40 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

The Commission has placed a six month ban on the six companies over charges of market manipulation.
 
"We have found that these brokers have sold huge shares at abnormally low prices just after the market opened," Securities and Exchange Commission member Muhammad Yasin Ali told the Associated Press.

Please ignore the other side of these trades...the folks that bought huge shares at abnormally low prices.

 

Selling a dip?  Xtranormal must not have a Bengali voice-over option.  Get Cramer into his Capt. Broccoli suit and on a Goldman Gulfstream to Dhaka!  What is so hard to understand?  Everyone gets long (this means third world countries too) and nobody gets hurt.  Just buy the fucking dip, and don't worry about who is selling to you.

http://www.youtube.com/watch?v=jllJ-HeErjU

 

Fri, 01/21/2011 - 15:11 | Link to Comment Bam_Man
Bam_Man's picture

I suppose that will be the new and improved definition of "bagholder".

As in "forced to hold the empty bag indefinitely".

Fri, 01/21/2011 - 15:22 | Link to Comment AnAnonymous
AnAnonymous's picture

Chew on the bag, chew on the bag...

Fri, 01/21/2011 - 15:16 | Link to Comment cougar_w
cougar_w's picture

The Bangy should just make selling stock illegal altogether. Buy and hold ... forever. Solve all their problems at once.

I think I'll start a consulting biz. I've got lots of rilly cool ideas for solving financial problems, and here I am just giving them away.

Fri, 01/21/2011 - 16:11 | Link to Comment Captain Kink
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+1    I was going to suggest a support group, but a consulting biz--brilliant!

Fri, 01/21/2011 - 16:31 | Link to Comment cougar_w
cougar_w's picture

lulz

I stand on the shoulders of giants.

Fri, 01/21/2011 - 15:17 | Link to Comment Marc45
Marc45's picture

"Sell short, go to jail.  It's the law!"

I'm waiting for that to show up on billboards in the US.

Fri, 01/21/2011 - 15:28 | Link to Comment Dr. Engali
Dr. Engali's picture

Who determines if it was a low price? The government or is it an agreement between the buyer and seller?

Fri, 01/21/2011 - 15:41 | Link to Comment SheepDog-One
SheepDog-One's picture

And still Wall St is baffled as to why the retail investor is gone and wouldnt touch any of this garbage with a nickel glued to the end of a 20 foot pole!

Fri, 01/21/2011 - 17:50 | Link to Comment StychoKiller
StychoKiller's picture

Wait a second!  I thought you said a dime the last time.  You mus' be wun of them thar deflaterz!

Fri, 01/21/2011 - 15:38 | Link to Comment DisparityFlux
DisparityFlux's picture

Geez, what a trading loss adverse country.

I suppose they play Bangkok Roulette at glass top tables.

Fri, 01/21/2011 - 15:55 | Link to Comment patience...
patience...'s picture

"We are all hoooou kay"

 

Love it.

Fri, 01/21/2011 - 16:06 | Link to Comment buzzsaw99
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You bought it, it's yours. No returns.

Fri, 01/21/2011 - 16:32 | Link to Comment cougar_w
cougar_w's picture

epic

Fri, 01/21/2011 - 17:53 | Link to Comment jeffca
jeffca's picture

Goldman or JPM closed?  I doubt it.

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