July 16, 2008
The SEC, I am sure, is aware naked short selling has been illegal for years now, we do not need new law to recognize this. We need action from those entities charged with the responsibility to police it - that would includse the SEC. Please be sure to go after the most egregious of naked shorts in the marketplace and just single out a few bad apples impacting preferenced entities. New law should not punish reputable, legitimate short selling. Please be sure to apply the enforcement actions across all sectors. You must be aware of the significant naked short selling that has taken place in the metals sector for several years now, and this naked shorting of companies listed on the American exchanges occurs as frequently if not more so in other countries. If those stock issues are represented on American exchanges, the SEC and any other appropriate agencies have a duty to expose and attempt to correct through mediation and enforcement action naked short selling activity occuring in other countries that impact American investors. Even if the naked shorted stock issues are not represented on American exchanges, their exists the reciprocity of lawful action with international exchange, and other countries should be pressured to investigate and shut down naked shorting.
You cannot have us believe naked short selling activity is a new found revelation to the SEC. It's about time the SEC demonstrate it's responsibility to ensure fair exchanges free of determined illegal manipulation. Many small investors like me are depending on the savings we manage to set aside for future preference uses. Don't punish those of us who manage to figure out how to save a few bucks by ignoring the most egregious of naked shorters.