Subject: File No. S7-08-07
From: Percy R Moorman, Esquire

November 1, 2012

Fraud is being practiced on me as we speak. The layman investor has no refuge from the sharks when they see blood in the water -much like Lehman. When the Primary Dealers are also brokers -which by mere definition would be involved in insider trading when these entities can by fraud, misrepresentation of facts, figures, and even knowingly and later to capitalize on insider knowledge is nefarious. When the Regulators look the other way and just go get their share, and allow the bleeding pulse of justice to just bleed out.
When you lose your moral authority, its a matter of time before you will lose every other authority as well.
Hide behind patriotism and is as fake as your history The Markets need truth, transparency and backbone. I will sit down and write a book what I have just seen and it points to everything wrong with the system. It's a lot of weaknesses to this system but the main one is the actual investor or "muppet" (who business calls) with the bonds and even government workers who try to threaten the investors to not claim their obligations.
The Whole System needs regulators to regulate and make firms disclose. Recently, I heard a primary dealer-broker said due to compliance issue it had to drop the account. But did not tell the investor- But later did an elaborate scheme to fraudulently steal a $10-Billion Security. Then closed out the account and told the investor bogus reasons but would not talk to him properly and even stole another $10-Billion bond in the vault on their website.
This is getting crazy the industry must slow down and breathe and think about the Industry and not yourself. None of you were around to spill blood during the Revolution when my grandfathers lived but at least spare some coin to regulate this system before it become as third rate like its people are fast becoming. This problem can be fixed with regulation and criminal complaints. The talk-down way of its agents breeds contempt and fraud. If you do a floating rate now. America would have lost all its credibility. That is the one thing that makes it a safe bet in the first place. That would cut your own throats in the long run. This problem can be fixed but maybe your Harvard Scholars have not even figured it out –so how can they fix it?
Most of the problems are all in-house. The wolf is guarding the chicken farm but had only the owner listened to the elder to turn back and check on that wolf dressed in the farmers own clothes.

Percy R. Moorman

(Attached File #1: s70807-115a.pdf)
(Attached File #2: s70807-115b.pdf)

Copyrighted material redacted. Author cites:

Freilich, Ellen. "U.S. Bill Sales Get Demand from Buyside, Dealers." Thomson Reuters, 9 Oct. 2012. Web. 2 Nov. 2012.