April 19, 2008
In the banking industry, every penny is accounted for despite a complex mix of paper and electronic transactions.
Your 35 page proposed rule change document is much too complex and still leaves the criminals wiggle room by requiring "intent to deceive or defraud."
The regulation should be very simple--easy to understand, easy to monitor and easy to enforce. This is how: All outstanding shares of every company must be accounted for at all times. Every share must have an identification number (like a serial number on currency.) Any transaction involving shares must include the serial numbers of the shares transacted, whether bought, sold, borrowed, long or short. The shares could be numbered sequentially for simplicity beginning with number one.
Every fail to deliver would be considered a violation of the securities act and subject to 1)restitution 2)Fine and 3)Imprisonment for repeat offenders.
What else is there to say. Just do the right thing. And while you're at it, look into LDK an investment of mine which I believe has been victimized by naked short selling.
Dr. Mark Anema