April 28, 2007
I think it is time that the SEC took notice of the abuses that have gone on for years, regarding the sale of securities that are neither owned, nor borrowed, by those with the power and position to do it.
First off, I believe, for the most part, that it is done intentionally and is not a matter an "oops" somewhere along the line.
Secondly, I believe there are times that it has been done with malice.
The persons selling shares they do not have legal control of, are guilty of stealing and should be dealt with accordingly. Somewhere along the transaction path, somebody must be held responsible.
If there is a valid reason for a fail to deliver, there must be a mandatory time-frame for it to be resolved, either by "finding" the missing shares, or for the "responsible person to purchase the shares to make the total number of shares issued for a company come out right.
There never was an excuse for grandfathering all those shares stolen in the past. That was just a way to protect the thieves.
Who are the thieves? Answer those that wish to continue selling shares they do not own. Who else would care?