June 2, 2009
The uptick rule must be re-instated and it must be given "teeth".
There is a crisis of confidence in this country. Christopher Cox is an oft mentioned name associated with the depression like malaise business climate in our town.
When the uptick rule was stopped in 2007 we were in the midst of a blow off stage of a bull market. Naturally, the tests that were tried did not reveal the terrible destruction of wealth short selling and "naked short selling" could have on our markets.
I believe that 90% of naked short selling is not reported, is originating off shore or in other markets. Here again I point to lack of confidence and the exit of a whole generation of potential capital, equity raising investors from our markets.
This in not a time to be playing "government". I ask you to re-instate the uptick rule "with teeth", meaning a sliding scale of the definition of what an "uptick" is.
I propose a sliding scale of 5% of the stock price. 50 Cents on a $100.00 stock-- 25 Cents on a $50.00 stock.
Thank you for the opportunity to comment.
M Gregory Krupey, Wytheville, Va.