The Long and Short of Shorting
In redirect examination -- where the defense gets to try and refute assertions made during the government's cross-examination -- Kenneth L. Lay testified that his son, Mark, was not short-selling Enron stock as the government argued.
Lay and Jeffrey K. Skilling before him testified that a cabal of short-sellers had conspired to drive down Enron's stock price through 2001, as short-sellers make money off a stock that's in decline.
The prosecution had alleged that even Lay's son was shorting Enron stock, an embarrassment for Lay, who said he didn't know his son was doing that.
But under redirect examination from defense lawyer George "Mac" Secrest, Lay said he reviewed Mark's brokerage account over the past weekend
Lay said his son was indeed trying to sell Enron stock, but not shorting it, and perhaps the broker got "nervous" and shorted the stock to lock in the price for Mark. I don't know what that means and I bet the jury doesn't, either.
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