July 27, 2009
Chairman Shapiro,
Just so that I can get this straight the SEC made permanent an interim final temporary rule that, while in existence, allowed companies like Dendreon to be raided by abusive trading practices. Perfect
With nearly a year of opportunity to look into and address the loopholes identified in the stock locate, stock borrow short sale system the SEC chose to ignore the concerns of thousands of comment letters and maintain status quo with a promise to look later into this issue and possibly consider more changes. How does that work?
The SEC has testified before Congress about their failures in protecting public issuers and investors and attribute much of their failures on under staffing. So why, if understaffed, would the SEC do nothing after a year but promise to look into the issued raised by so many at a later date?
Deepcapture.com has created a 15 part series on how stock manipulation and fraud takes place and takes place at levels that potentially destroy public companies but definitely destroy market confidence and investor rights. They did more than the SEC was ever willing to do. The move by the SEC to do nothing about that particular issue and the process flaws that globally impact so many investors is proof positive that change needs to be made within the agency and change that may include the total destruction of the captured agency we presently see before us.
How much fraud is allocated to playing politics these days?
I ask, to what level has the SEC investigated locate abuses relative to flash trading or day trading hedge funds executing short sales? Has the SEC actually investigated how locates are used in such short sales and are short sellers locating shares on a one for one basis or a one locate for 10 share short sale basis? If the SEC has not sufficiently investigated this matter, the SEC is negligent in their duties as a minimum and possibly criminal in their actions if they purposely ignore the evidence that aids the fraud.
How much money in resource has been wasted by that conflicted co-Director James Brigagliano in avoiding to take responsibility for this fraud? Has the public whose taxes pay his salary received their fair value out of this individual?
The public has spoken, the major markets have spoken, and the members of Congress have spoken and yet the SEC continues to take the baby steps that lead to investor and issuer destruction. Who do we have to blame for that and what are you doing to rectify it besides delaying progress? For the record, the SEC claims that the interim rule was responsible for a reduction in FTDs and threshold securities is false. The reductions in both metrics initiated with the collapse of the markets in June 2008 and not when the rule change was issued in September. I would suggest that the SEC be a bit more honest and accurate in their PR campaigns instead of the false and misleading information it is accustom to providing.
Still waiting for that promise of change and accountability. Talk is becoming very cheap as investors are losing their much needed savings to market abuses sanctioned by the SEC.
Dave Patch