August 18, 2009
Dear Chairman Shapiro,
As a long time investor and due to hedge fund organized short raids all bid in sight, markets in general and financial institutions specifically collapsed in March and are still on very shaky grounds, despite help from the Fed. Many smaller stocks have not recovered, despite a solid future ahead of them.
You are soliciting commentary on this matter of the Uptick Rule and short selling. Illegal short selling persists and investors are being unduly punished for the benefit of rogue traders and under the pretext of maintaining liquidity supported by studies and a large parade of self interested professors.
Naked short selling (the most damaging of all) via Canada and other non-US sites persists, despite the fact it is considered illegal. What do you need to see to reinstate integrity to North American financial markets, and save investors, pensioners and businesses that have been the foundation of a thriving America?
The time has come to take action. The frequency trading, front running Quasi-derivatives, insider trading and wanton naked short selling make a mockery of our markets. They make Mr. Madoff look like a Saint. Everyone knows it. Who will be left to trade at the end of this?
Mr Shapiro, I know it takes time to get going on these issues confronting your organization. But time is not on our side. I'm getting older and I am doubting if there will ever be a level playing field with free and fair markets in my lifetime or even in this country ever again. What has happened to this country that I used to love so much?
Best Regards.
Larry Jacobson