September 3, 2009
I believe Naked Short Selling has severely impacted my investment in Spongetech (SPNG). The failure to deliver (FTDs) and short seller have completely manipulated the share price. Even though it is listed on the REG Sho list, by the number of FTDs, it is obvious there is no enforcement to limit market makers from further short trading. It is a case that deserves investigation. Any laws that would halt such trading practices, such as coding short sales, has my support.
The Spongetech example above reveals that the SEC has not done enough to protect investors. Abusive use of technology, which skims profits, manipulates stock prices, obscures transactions, and encourages electronic gamesmanship, does not reflect the true share value nor represent the capitolistic intent of individual shareholder ownership. This abuse only breeds mistrust in our financial markets and government, apparently incapable of self-regulation and enforcement of an orderly capitol market. The significance of this unruly system impacts my financial security, corrupts the integrity of the markets, and damages our global stability.
One has to believe that those that profit off by skimming off the top of transactions, have used their money and influence to keep weak regulators and regulations to ensure no one is held accountable. This systemic corruption and undermining of the financial systems degrades our often touted "free market" system and as seen by the last meltdown (to which we have barely recovered and taxpayers paid the price,) has far reaching implications such as, the quality of retirement, tax revenues and government funding of basic services, and the potential for the very rich to scam the American public. I am disgusted by this agencies inability to provide a fair, honest, and open market to all investors.
Finally, Chairman Schapiro is showing the moral integrity necessary to guide the SEC. Just another Bush disaster to clean up. Thank you for addressing this serious problem.
Bridget K. Carman