March 27, 2007
CHAIRMAN COX NEEDS TO GO Below is a quote from Mr. Cox, all lies it appears? For years we have known the Grandfather clause was illegal and unconstitutional. We have been commenting on these problems of counterfeiting stock at will, and you sit by and do nothing. I see it as aiding and abetting the criminals and you should be considered and treated as such yourselves. I have been complaining on a weekly basis and all that is done is the typical response that we are looking into it. IT IS TIME TO STOP THE THEFT You have failed and are no longer trusted by the American people that play by the laws. It is time we march upon your doors and remove you and all your cohorts from the position.
CHAIRMAN COX: Abusive naked short selling is of great concern to the entire Commission, to all of our members and the professional staff at the SEC. The regulation that was first adopted to get after this and related problems, Reg SHO, has proven insufficient to stop the problem. One of the reasons is the Grandfather provision in the rule as it was originally adopted, so we are now setting out, as you know, to eliminate that grandfather provision. And we will do more. Just as Congress may well have hearings on this issue and seek to get more information, so too are we looking at this. As you know, there's a technological side to this. This is very closely connected to our system of clearing and settlement in a very very big market, and we want to make sure that we use technology as our friend in relating, potentially and at all times, ownership and particular shares rather than waiting until the end of an arbitrary period of time to match those things up. It's those sorts of things that I think will eventually help us, I think, put an end to this kind of abuse. And I know that people victimized by it have a great deal of right on their side to complain about it.