In Pakistan, Investors Give New Meaning to "Shareholder Activism"
No lawsuits or adjudication panels for Pakistani investors. Instead, they have developed a novel way of trying to get the money back they lost in the stock market.
They just stone the place.
Pakistan investors stormed out of the Karachi Stock Exchange, smashed windows and cursed regulators after the benchmark index fell for a 15th day, the worst losing streak in at least 18 years.
``I have lost my life savings in the last 15 days and no one in the government or regulators came to help us,'' said Imran Inayat, 45, a protester and a former banker who retired early and said he lost 300,000 rupees ($4,175) on the market.
I'd like to know how you can retire early on $4,000. I think I'll move to Pakistan because I've almost got twice that much!
Police surrounded the exchange after hundreds of investors stoned the building and shouted anti-government slogans.
I was thinking that in America, maybe investors could also express their displeasure with our government. But that would just put us with the other 80% of the population, so I'm not sure if it would work.
Regulators this week eased the curbs on trading after volumes fell to the lowest in a decade. The restrictions, including a ban on short selling, were lifted with effect from July 14 by the securities commission after the exchange announced a 50 billion rupee fund to buy stocks.
I wonder if SEC Chairman Christopher Cox got his restrictions on short-selling from Pakistan?
And why the hell is the government gingerly dancing around the GSE mess. They should just use all the money they have and start the bidding for Freddie and Fannie at $20 a share. Oh, wait, we don't have any money.
Maybe we could ask the Chinese.
Investors broke windows today in Karachi, threw plant holders in the parking lot of the building, burned shareholder statements and at least one protester was injured, prompting intervention by police and the paramilitary. Investors also protested outside the Lahore and Islamabad stock exchanges, Geo Television reported.
Now THAT'S shareholder activism!
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