February 28, 2009
Dear Chairman Schapiro,
Congratulations on your new Chairmanship. To restore confidence, the # 1 thing we must do is restore the UPTICK RULE for short sales, a market stabilizing rule that was in place from 1938 until 2007. I have corresponded with my Congressman and Senators and wanted to reach you as well. In my opinion - MILLIONS of shareholders are now at the mercy of a ROOMFUL of short sellers who have in turn DESTROYED confidence in this country. Below you will find articles by George Soros and Charles Schwab that I ask you to read ASAP. I've seen the studies that show it doesn't make a difference. My only retort to that is - if it doesn't make a difference - then you won't have a problem reinstating the rule - because it doesn't matter. I fully realize that the uptick rule change is not the cause for the current bear market, however, it created a black hole for many stocks and the destruction of wealth for many many many Americans. Unfortunately - these short sellers can annihilate ANY stock on the board if they wanted - which is a scary thought. PLEASE RESTORE THE RULE.
http://www.ft.com/cms/s/0/49b1654a-ed60-11dd-bd60-0000779fd2ac.html
http://online.wsj.com/article/SB122878208553589809.html
Sincerely,
Montgomery B Sweeney