April 21, 2009
Hello,
I would like to complain about the SEC not doing their job, but who do I complain to? If I complain to the SEC, they just
ignore my complaint.
They don't help the retail investor. Perhaps the agency is understaffed and overwhelmed, but if they are, this needs to be changed. For over a decade, the SEC has ignored enforcement of the 3 day rule. This rule requires that shorted share be accounted for within 3 days. Hedge funds have learned that by simply shuffling the shorted shares around from broker to broker every few days, they soon fall off the radar, become "naked" and the SEC no longer has any idea of their existence. This is a huge problem
Because the SEC does not enforce the 3 day rule, hedge funds as well as offshore accounts (Chinese government, etc.) have all learned to use this technique. It would not surprise me at all to learn that Citi (C) has more share shorted in this manner than exist in the float. In order for the United States to resolve it's current economic crises, it needs to focus more attention on the financial attack that's being perpetrated. Just as China and others flood our economy with counterfeit $50 and $100 bills, they also remove large chunks of market cap from our financial institutions with the removal of funding with these "naked" shares. This completely undermines our efforts of rebuilding. If the SEC is incapable of doing anything about this, wouldn't it be prudent to effect changes rather quickly to protect our fragile system from irreparable harm while the SEC sits idle? For over 15 years they have been ignoring this glaring issue. When does it deserve attention? It has grown into more than just a gorilla in the room, it is now the gorilla on crack.
I witnessed another problem with Citi, and I am convinced that the SEC does not investigate corrupt activity in the market, so who do I report this to? As a recent example of hedge fund manipulation, a phony publication ostensibly put out by the Turner network. It was a "leak" of the stress tests of banks. Naturally, it was very unfavorable. Coincidentally, this "leak" occurred at the same time that Goldman Sachs and Argus downgraded Citi. There are no coincidences. This kind of confluence of events should be investigated. The short attack on Monday morning didn't just happen with the Argus release, the phony Turner document and the GS downgrade. These people all represent the interest of big money, no different than Maeddoff. It should be taken very seriously. Why should the retail investor be allowed to be fleeced by a well constructed scam like this?
Everyone knows that the SEC will do nothing. As such, they become an accomplice. They are paid by the retail investor to protect them from this kind of abuse. Instead they collect their pay check and sit idle while watching safely from the sideline. This is the kind of abuse the our representative should conduct a hearing to investigate. Instead, they will also do nothing. Who is out there to protect us from these orchestrated egregious activities? If you cannot do anything to help us retail investors from these scamming rape artists and their accomplices watching from the sidelines in the government, can you tell me who can?