09/28/2008
Is Fortis speculation a dump and jump scam ?
| PRICE | % CHANGE | VOLUME | |
| VODAFONE GROUP | 126 | -1.41 | 195898256 |
| UNICREDIT SPA | 3.26 | -4.12 | 182889796 |
| FORTIS | 5.36 | -16.51 | 167608377 |
| ROYAL BK SCOTLAN | 208 | -5.67 | 160489044 |
| TELECOM ITALIA S | 1.13 | 2.54 | 125785119 |
| INTESA SANPAOLO | 4 | -3.15 | 95652586 |
| BANCO SANTANDER | 10.85 | -0.73 | 93062410 |
| LLOYDS TSB GROUP | 251 | -8.14 | 73559125 |
| GLITNIR BANKI HF | 15.7 | -0.95 | 70540029 |
| BARCLAYS PLC | 366.5 | -0.95 | 69112349 |
The question will be if the solution will be enough, if it will be convincing enough. It seems that not only the governments, but also the European Central Bank and the European Commission seem to have understood that this first full-scale attack on an European Bank has to be stopped and that they can only do this together. The question to ask is if at the time of the opening of the asian markets, the measures will be enough or better, the defenses put into place will be enough to respond to speculative waves of selling of stock.
We could maybe call this 'dump and jump' scams instead of the 'jump and dump' scams. In the last one the tactic was to hype up a stock (mostly unknown but so called promising) through spam and to dump it at its highest price just before it is known to be a scam. In this case you dump as much as you can and try to get others to do the same, just to jump in and buy stock at a much lower price when you can expect governments and private partners to step in to salvage the stock or financial institution and get a much higher price for it.
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