Financial Stocks: Prime Brokers' Naked Shorting Probe, ISE Directors Sell Stock

Excerpt from today's One Page Annotated Wall Street Journal Summary (which you can get emailed to you every morning by signing up here):

HEARD ON THE STREET: Suits Focus on Street's Role In 'Naked Shorting'

• Summary: Two lawsuits have been brought against Wall Street firms relating to naked short selling. The suits allege that prime brokerages charge fees to clients for borrowing stocks without actually borrowing them. "Josh Galper, managing principal of Vodia Group LLC, a financial-services consultancy in Concord, Mass., says the lawsuits may threaten the profit margins of the prime-brokerage business."
• Comment on related stocks/ETFs: Stocks potentially impacted: Goldman Sachs (GS), Morgan Stanley (MS), Bear Stearns (BSC).

INSIDE TRACK: Executives, Directors Sell ISE Stock

• Summary: 12 executives and directors of the International Securities Exchange Inc. sold $19.8 million worth of shares since the stock hit a high March 16th. Meanwhile, "Dan Snyder, the Washington Redskins owner who took over as Six Flags Inc. chairman in December after a proxy fight, bought nearly $3 million of Six Flags stock as it fell Friday on news of potential credit problems. The purchase was Mr. Snyder's first since the proxy contest and raised his stake to 12.1%."
• Comment on related stocks/ETFs: Negative for International Securities Exchange Inc. (ISE), positive for Six Flags (SIX).