August 7, 2006
"Grandfathering" FTD's is NOT a solution for eliminating FTD's. That simply removed pre-January frauds from prosecution and then allowed new frauds, up to the SHO limit, to be created without prosecution. I think SEC has finally realized that FTD's can be a low percentage of overall transactions, and still be sufficiently effecting an individual company to merit serious regulatory action.
The integrity of the system is in question - at both low and high levels. SEC has entered into some prosecutions and that is good. But continuing to "grandfather" criminal frauds is not an appropriate activity for the SEC, or any regulatory body.