February 19, 2009
Dear chairman Mary Schapiro,
Bring back the uptick rule. Financials, insurance, and the market got crushed. Today I heard an analyst named Meredith Whitney say that Citicorp is a short at 2.51 cents a share. Bank of America, Wells Fargo, and all other banks are being manipulated beyond reality. Where are you, its the uptick rule, please act ASAP. You are in charge for a month, please save the market from these short sellers and naked short sellers and stabilize the market. Where and when will you act.
Mark to market account is also a big problem. It does not give clarity, it gives distortion to long term asset evaluation. This needs to be changed, Losses should be amortized over the life of the Assets. If my house goes down in value I cannot mark to market on my taxes. Why aren't there schedules for depreciating assets like MACROS or straight line schedules. YOU need to act NOW.
Stop the unfair use of leverage by using ulltra EFT's on both sides of the market. These never should have been allowed by the SEC. DO YOU UNDERSTAND that these EFT's are used to get around margin requirements, manipulate the down side, make the hedge funds money at the expense of small investors.
BAN THESE ASAP.
Since the beginning of this year financial stocks are down 40%. That is a big profit for shorts. It hurts all small investors, 401k's, IRA's, pension accounts. The investor is getting mugged. Confidence, and a fair playing field is what is needed. YOU have the ability and the responsibility to address all of the above.
Last I am losing faith in the SEC, Stanford is another example of not doing supervision and oversight. You are late on this, do not miss a chance to level the investment playing field, pass the uptick rule and watch the naked shorts run for the hills, Catch them throw away the key. JUNE 2007 was the second worst day for the SEC. The first worst day was April 28 2004 when the SEC allowed the NET CAPITAL RULE go which allowed banks fto leverage 40 fto 1 . This means a 2.5% drop causes banks to be under water. Donaldson and the other SEC members need to answer for this . Where was the oversight? Please act to restore
confidence and trust in the market. The pain is going into the bone.
Thomas D. Link