May 7, 2008
Dear Commissioners:
File No.: S7-08-08 Naked Short Anti Fraud Rule should not be implemented. The Securities acts of the 1933 and 1934 give you all the authority you need to clean up the market. It just requires that you do so. Please use the authority already given you by Congress to put the crooks out of business and into jail.
I believe that another reason the “fail to deliver/ naked short” issue has gone on so long and been so hard to eliminate is that the small investor has no representation on the SEC Commission. There are a number of individuals who could fill the two vacancies you have on the Commission at this time and would represent the interests of the small investor well. Please suggest to the POWERS THAT BE that it would be appropriate to have a more balanced Commission.
To this end I would like to nominate the following individuals, who have demonstrated through their actions and writings great knowledge of the subject of market manipulation and have shown a desire to help bring INTEGRITY to the markets where there seems to be none:
Dr. Patrick Byrne
Mr. Jonathan E. Johnson III
Mr. David Patch
Dr. Jim DeCosta
Mr. Bud Burrell
Mr. Mark Faulk
Mr. Gary Aguirre
The Commission needs to adopt a rule concerning future employment of Commissioners and employees of the SEC. Those who are in an influential position, while in SEC service, need to be forbidden from seeking employment with those they were regulating. CONFLICTS OF INTEREST whether they are real, or perceived, harm the Commissions credibility and send the wrong message to investors about whose interests the Commission is really protecting.
If, the Commission reads the public comments on proposed rules, it does not seem to take the advice it solicits. Is there some other mechanism for input that the Commission is using to determine what rules are to be adopted, modified, or rejected? If there is a BACK DOOR, the Commission needs to lock it. All inputs to the Commission should be through the same door we the public are using. All communications from Market Participants concerning proposed rules, needs to be aired in public. No special favors!
The Commission needs to be more specific with regard to proposed new rules. When proposed rules are posted, a time line for comments and a date for the final decision should be specified. As it is now we have no idea when, or even if, a rule will be adopted. Proposed rules sometimes just seem to die, or are altered from what was presented to the public for comment. If changes are made a new comment period needs to be started, but with a shorter time line.
If you are really interested in a fair and equitable market for all, please give serious consideration to these comments.
Sincerely,
Karl Schreiber