April 6, 2008
Naked short selling has been a means for the brokerage houses to steal from the small shareholder for years.
Naked short selling has destroyed and devoured many small companies that never even got the chance to be something big. How many great ideas and innovations have been lost?
Naked short selling is destructive to the economy. It steals from the small shareholder leaving less to spend on consumer goods.
I can't believe Rule 10b-21 is even being thought of.
Anyone who trades securities already knows naked short selling is against the law in accordance with Rule 10b-5 and Regulation SHO. We knows this because Rule 10b-5 and Reg SHO already tells us this
Now the SEC wants to propose another rule to say "IT REALLY REALLY REALLY IS ILLEGAL."? Um... Are you kidding me?
Instead, the SEC needs to start writing the tickets.
"Honest... Officer, I really was going to deliver the shares I sold." says the broker.
"Either pay the fine or tell it to The Judge... end of story..." says the SEC.
I don't care what the intentions were... and neither should the SEC. You fail to deliver, then you break the law.
There are many people in jail who didn't intend to hurt anyone when they committed their crime. That is a consequence of criminal action. The same exists with naked short selling. People are getting hurt.
Run a red light, whether you meant to or not and you still get the ticket. You still committed a crime. Run too many red lights... lose your license to drive. Fail to deliver so many times... lose your license to trade. Hold the brokerages accountable for the numerous rogues
We don't need another rule to say naked short selling is illegal. We already know it.
We need the SEC to start writing the citations. Naked short selling is securities fraud, plain and simple. Make the penalties representative of this crime and START ENFORCING IT ALREADY.... Rule 10b-21 says "it really really really is illegal..." Ridiculous
The criminals are already laughing at you
Get pissed already and do something about it :)