February 20, 2009
Dear Chairwoman Schapiro:
(2/20/09) The financial stocks are sharply lower on rumors and speculation that goes contrary tp statements and programs issued by the Secretary of the Treasury and without significant news on a Friday that was not available on last Monday. In such a “cear raid”!the Commission must be vigilant about uncovered short selling, rumor mongering etc. It would seem appropriate for a temporary ban on short selling of equities and limits on credit default swaps, reinstitution of he uptick rule amended to compensate for decimalization –!and whatever actions needed to stabilize markets.
You have been Chairperson for just a short time, but I believe you must take bold action quickly. In my opinion, the collapse and bankruptcy of two of the leading banking companies and the destruction of all their shareholder equity may permanently damage the functioning of stock markets in the future.
Thank you for your attention.