June 24, 2009
It is amazing how Wall Street firms (read their letters against the Uptick Rule) using the same scare tactics as "liquidity will dry up" and "our markets will lose competitive advantage" that the same Wall Street firms used to lobby for Commodity Futures Modernization Act of 2000 (aka Enron loophole), against Glass-Steagall Act, and for 2004 SEC decision to exempt five biggest investment banks from the mere 12-to-1 prior leverages. After the SEC sited with the lobbyists in 2004, all five banks levered themselves 30-40 to 1, resulting in the current financial crisis and many innocent people (that had nothing to do with the Wall Street casino gambling) suffering. Currently, out of those 5 banks that lobbied the SEC, three went belly up and two were put on taxpayer life support system.
I cannot believe that the two remaining but transformed into a different structure banks (Goldman and Morgan) that were saved by the taxpayers are currently lobbying against the Uptick Rule and against the interests of a regular investors. The Wall Street still does not get it.
Anybody who can tie their shoe laces can see that removing the Uptick Rule was a big mistake. The SEC must correct this huge and costly mistake ASAP. The Uptick Rule must be reinstated immediately. You can have your demagogue discussions later.