September 18, 2009
Subject: In Support of the above bid short selling rule
Dear Chairman Shapiro:
Due to hedge fund organized short raids pounding all bids in sight, markets in general and financial institutions in particular collapsed in March. These markets are still on very precarious grounds, despite help from the "invisible" hand of the Fed. Many smaller stocks have never recovered, despite a solid, fundamental future ahead of them.
I understand that you are still soliciting comments on the matter of the above bid short selling rule ("Uptick Rule") and short selling. As you know, illegal short selling persists and investors, such as myself, are being unduly punished for the benefit of "rogue traders" and under the pretext of maintaining liquidity supported by academic studies and a large parade of self interested professors.
I have no problem with legitimate short sellers. However, naked short selling (the most damaging of all) originating in Canada and other non-US sites persists, despite the fact that it is considered illegal. What is needed for you to reinstate integrity to North American financial markets and save investors, pensioners, and businesses (large and small) 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.
Ms. Chairman, I realize that it takes time to get up to speed on the issues confronting your organization. Please hurry. Time is not on our side. We are getting older and future generations will pay the consequences of our inaction.
Thank you for listening.
Best,
Don LeMaster