July 19, 2008
It is troubling to me that you have an emergency order to protect the very people who made this a huge problem. Ever since the Securities Act of 1934, naked shorting has been illegal. 17a. Remember?
Reg SHO came along to "grandfather" (read: protect the investment banks) their illegal "proprietary" trading, i.e. naked short selling, counterfeiting - same only one gives FTDs and the other IOUs...
Now we have another layer of fake law. Why not just enforce the law for everyone? Why are we protecting RICH investment bankers who have committed criminal acts against the public trust? Why?
It is clearly time to enforce the rule of LAW, and stop giving the investment banks more and more reasons to steal from American citizens.
Do not give the criminals on WALL STREET a free pass. The moral hazard that is in place is HUGE. In case you have forgotten, there is no Santa Claus, free lunch, or Easter Bunny. Yet you have led the Bankers to believe that they can do whatever they want. And they have, with your blessing. Now, a new gift from the SEC... A HUGE NEW LAYER OF MORAL HAZARD.
No new fake laws. Consequences for the offenders. Restitution. That's my solution. The public demands that you start to serve the public - not the criminals on WALL STREET.