Closing My Short Position on the Brokers

In August of last year, I mentioned my initiation of short positions on Bear Stearns (NYSE:BSC) and Lehman Brothers (NYSE:LEH), two investment banks which had profited handsomely from the abundance of liquidity in the financial system.

Both stocks continued to perform well for the next few months, at which time I decided to double down on my short position. It was not until February that the problems I were looking for in the brokers began to catch the attention of the market. I have now decided to close my short position in both stocks with around a 20% gain.

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