August 13, 2008
Security and Exchange Commission
To whom it may concern:
RE: Subject: File No. S7-19-07
I am a small investor and US citizen. My assets may not be large compared to others but to me they are everything.
I have been studying recent market events and recognizing the threatening affects they are having on my fellow Americans, our country and the global world economies.
NEWSFLASH:The US Stock Market is being manipulated and Naked Short Selling is rampant and being allowed to continue and flourish with careless abandon. The abolishment of the uptick rule has increased volatility and risk.
The SEC needs to focus it's efforts immediately on ending this widespread abuse of naked short selling and replace the uptick rule.
These unchecked actions seem to imply that either the SEC doesn't know what is going on or that it is complicit with these investors, fund managers and broker-dealers.
Illegal short selling is just that ILLEGAL. Apparently this administration will need to mandate a new definition be added in Websters to reflect a new world reality.
The Options Market Maker Exception clearly needs to be eliminated and the SEC needs to ACT IMMEADIATELY to bring Regulation SHO up to the level of pre-existing anti fraud statutes. Existing Anti-Fraud Statutes give the SEC Enforcement power but your 30 day emergency actions not only suggested but confirmed that exceptions are being made to current laws prohibiting criminal fraud.
Why is the Commission proposing yet another law to address naked short selling when the current rules already prohibit it under anti-fraud rules? It would seem that this delay in action is just adding to the problem if not wholeheartedly supporting the actions of these unscrupulous broker-dealers. The RICO statutes that have been in place for decades for prosecuting these crimes. Purposeful illegal short selling and market manipulation involve conspiracy among investors, fund managers, broker-dealers and even members of the media. Should we be adding others?
How is it that you have chosen certain special interests to benefit from your emergency action while others rights have been totally disregarded? The SEC published a list of protected entities that including not only Fannie Mae and Freddie Mac, but also the worlds largest banks and broker-dealers. Your duty is to protect all securities against criminal fraud, not just a handful of financials that are paying your paychecks. There are thousands of companies that are counting on the SEC to set the bar on fairness and uphold justice and you are failing miserably. The American public is loosing confidence in our entire democratic system. We are watching laws being disregarded on an alarming daily rate. The average person in this country and their children and their children's children are getting screwed from every possible angle.
From researching your history apparently the SEC has been ignoring the problems of naked short selling and related market manipulation from it's inception. On your watch, a new generation of white-collar fraudulent manipulators has been created. You have collectively allowed them to operate like this and it should not only be a criminal offense but one of high treason against this country. Your inaction for not having brought charges and made examples out of these terrorists against our financial systems is worse than being a spy who collaborates with the enemy against his own country.
Will you be proud when you tell your grandchildren and children you used to work for the SEC/Government and helped bring about the demise of our country?
Bring back the uptick rule and stop all Naked shorting immeadiately, enforce the laws of this once great land or do us all a favor and look for new jobs.