July 18, 2008
I moved my entire portfolio to certificates because of the lack of enforcement of any reasonable policy preventing the holes in SHO from producing what amount to counterfeit shares. It is inconvenient for me, but the only way to know I have real shares because of the utter failure of the SEC to stop the fraud and theft that failures to deliver have permitted.
It is scandalous that the SEC allows so much illegal activity that special provisions were recently made to protect a few big financial institutions from suffering the fate they themselves have likely perpetrated on other companies and their shareholders.
Do your job! Apply that special standard to ALL companies and do not allow ANY eternal grandfathered Failures to Deliver. If companies go bankrupt from their criminal activity, they should go bankrupt, at the very least. And those who colluded in fraud should be charged with the appropriate crimes and tried.
Some companies have more proxies voting than shares issued, which means they must have incredible numbers of counterfeit via FTD shares out, since many stockholders do not vote their proxies.
If a borrowed share is not in hand in 3 days, then the short seller should be forced to sell right then. No special rules for market makers that permit fraud and conspiracy in the market.
Cleaning it up and getting the criminals out of our markets will hurt, but after the clean up new companies that could be the next microsoft or google and greatly benefit our economy will not be dragged down by crooks.
Our stock market was then envy of the world. Now it is a gang of robbers worse than 29.
Please, do your job. Clean it out. All of it.