July 27, 2008
Under Chairman Cox the SEC has done little or nothing to prevent the corrosion of value that is taking place across the financial industry. The US stock markets have naked short sellers who counterfeit shares by inventing them and selling them. If US currency was counterfeited like the naked short sellers are doing with shares, those currency counterfeiters would go to jail. Under Chairman Cox, stock share counterfeiters - otherwise called naked short sellers- merely go to the bank with their ill gotten gains.
That MR Cox can testify to the Congress that his agency is studying this problem is an emblem of the bunkum that Chairman Cox has become famous for. Should the financial community suffer further collapse in the near term, Mr Cox need look no further than the image reflected in his own mirror to establish one of the origins of the financial communities' demise.
That NY Atty Gen Spitzer had to take action against major Wall St corruption should have shamed Mr Cox and his agency into aggressive enforcement of the 1933 and 1934 Securities and Exchange Acts. Regretably for all US citizens that did not happen and we are in great jeopardy by this collossal failure to act by Mr Cox and the SEC.
If the SEC merely begins to do it's job now, it may not stem the tide of collapse but it is better than the nothing that the SEc has been doing.