February 2, 2009
Dear new SEC:
Suggestions from someone who wishes to see the securities markets return to health:
1) The SEC's recent move to deny investors the chance to have their securities certificated is a mistake that should be reversed. Falsely perceived as pro-broker, it is solely, and wholly, anti- investor. Madoff investors who received statements saying their accounts held IBM, had they had their certificates registered in their names and delivered, would now hold IBM, instead of nothing.
2) Reinstate the uptick rule.
3) Naked short selling has decimated markets. Anyone broker that allows stock to be sold short and cannot deliver a certificate in a timely manner should be required to buy the stock back automatically or be severely fined. "Reasonable assurance" that somebody somewhere maybe owns the stock has not worked, when the SEC pretended to bother about it, and such laxity may be inherently unenforceable. This old trick allows short sellers to create "infinite float" and drive stock into the ground.
Thanks for your time and consideration.
All Best,