New Proposed Ban Would Rein in Rapacious Hedge Funds
NEW YORK, N.Y.—The new episode of the “What’s Bugging Me” podcast on Ricochet features an exclusive interview with investor activist John Brda, former CEO of Torch Light. Brda discusses a proposed executive order to ban illegal naked short selling, a topic detailed in a recent Newsmax column by podcast host Dennis Kneale.
Brda ties his experience to the new order, which targets the SEC’s Regulation SHO exemptions that allow market makers to sell phantom shares, as seen in cases like GameStop and Trump Media & Technology Group (DJT). Brda’s former company was a target of short sellers and “naked” shorting, and 65,000 small investors lost everything in the fallout.
Naked short selling, by which market makers sell more shares than actually exist—e.g., 1.52 billion shares traded for Sharps Technology’s 16 million—artificially depresses stock prices, as seen in the 2008 collapses of Bear Stearns and Lehman Brothers.
The proposed executive order targets SEC Regulation SHO exemptions, requested by Bernie Madoff in 2005, letting market makers avoid following the restrictions on short selling which everyone else must follow. It proposes lifting these exemptions, mandating pre-borrow agreements, and fining fails-to-deliver, aiming to protect investors like those impacted by GameStop and DJT.
Kneale, a former anchor at CNBC and Fox Business and the former managing editor of Forbes magazine, explores how Brda’s activism aligns with the order’s goals—lifting exemptions, requiring pre-borrow agreements, and fining trading firms for “fails-to-deliver.”
The executive order draws from an 81-page paper by Dartmouth’s John Welborn, and it was drafted by the group We The Investors. Brda’s input promises to illuminate the impact on investors, especially amid the current market volatility.
This segment showcases Ricochet’s commitment to expert-driven content, appealing to finance enthusiasts.
Available now on major platforms, episode 131 offers a rare glimpse of Brda’s perspective, complementing Kneale’s analysis. For more information or to listen, check out these links.
Episode 131, ”What’s Bugging Me”
- Ricochet: https://ricochet.com/podcast/whats-bugging-me/battle-of-la/
- ApplePodcasts: https://podcasts.apple.com/us/podcast/whats-bugging-me/id1657007934?i=1000712634938
Link to Kneale’s “What’s Bugging Me” column on Newsmax.com, on the new order that would ban “naked” short selling:
https://www.newsmax.com/denniskneale/citadel-shares-shorts/2025/06/09/id/1214202/