April 21, 2009
Your remedies for abusive short selling are not nearly sufficient. I have defended the new administration countlessly against charges that the new SEC would be no better than the last at defending retail investors from the wolf-pack predations of hedge funds and brokerages.
An uptick rule is a good thing, don't get me wrong. But we need a pre-borrow rule for shorts, and 3 day settlements on all trades. You drag your feet and hem and haw, and take forever to even consider the slightest remedy, when all you have to do is look back on the last year for evidence of abusive market manipulation.
And what about requiring large short positions to be disclosed, just as long positions are? The impression that the rule-makers and regulators are captive to the larger forces in the market will continue until you level the playing field with reasonable rules for all.
A pox on you all if you fail to act.