July 18, 2008
Selling a stock short without the means to borrow it in advance of the sale is simply counterfeiting stock. There can be no other conclusion. The Commission should protect individuals from these predatory criminals via vigorous and intense enforcement of existing rules.
In the precious metals sector we've endured blatant naked short selling for too long with no action by the Commission. The Commission should get on enforcing your rules and close all loopholes that allow this practice. Current enforcement is a sad joke when it comes to protecting small investors. Also, if the current regulation is passed make sure to enforce it for all sectors not just the corrupted banking sector. The Commission should protect individuals from these predatory criminals via vigorous enforcement of existing rules.
The Grandfather clause in Reg SHO is unfair to all except those who game the system. Small investors demand full transparency. Also all transactions of the DTCC should be fully available for all to see. Hiding naked shorts sales within and between broker dealers is a crime that needs enforcement for all sectors not just the big banks. Act now and stop this criminal activity.