March 2, 2009
Salient points regarding request for immediate legislation to stop Market Manipulation:
This is a personal plea to you as an elected or appointed official to become involved in overturning egregious practices which are rampant on Wall Street and which are contributing to the potential cataclysmic and permanent collapse of the free trade system and the securities exchanges in our country.
1. Mandate a new Uptick Rule immediately, which should be defined at three cents ($0.03) and not merely at the one cent ($0.01) level. The SEC has only recently studied the one cent Uptick, claiming that it would be ineffective, and thus stymied and then killed further discussion. Historical perspective clarifies why the one cent ruling would not work today. The original Uptick was created in the market environment when everything traded in 1/16's (6 cents) and 1/8's (12.5 cents). So if the Uptick requirement is defined at three cents, it will work just as effectively as did the original Uptick Rule for over seventy years.
2. Secondly, legislation and resultant SEC statutory intervention must be mandated to correct the atrocities done to the average investor on a daily and often minute by minute basis by Short Sellers, Bear Funds, and ETFs—xho somehow feel they are above the SEC SHO ruling for Short Selling. These funds are notorious for encouraging the illegal practice of naked short selling. The average American with an IRA or a 401k sits in front of his computer monitor waiting with anticipation and heartened by recent earnings statements or excellent news of mergers or new contracts only to see daily that nothing can trump Mr. Market’t manipulation. Gain after gain is instantly wiped out in the current market climate because of manipulation, not stock valuation decline.
3. Immediate suspension of application of FAS 157 Mark-to-Market Accounting. The Emergency Economic Stabilization Act of 2008 was passed and signed into law on October 3, 2008. Even though the SEC initiated its study of Mark-to-Market accounting immediately, and within one week the FASB issued further guidance, on December 30th the SEC issued its report and decided not to suspend mark-to-market accounting. Please re-open this investigation. Recent guidelines from the SEC, which was organized to protect investors, are in actuality harming them greatly. Many huge companies are in serious peril in large part because their investment portfolios appear significantly reduced because of Mark-to-Market accounting; this is turn decimates stock valuation and pricing.
In conclusion, as long as profit can be made wantonly and without regard to any essence of fair play, Short Sellers and Bear Funds and manipulators will prevail, taking with their greedy profits hope for the American belief in equity and honoand equal chance under the law—gor everyoneven those west of the Hudson. Wall Street has stolen this time-honored and revered right directly out of the pockets of America, and it appears that the SEC is sanctioning this. With an efficacious Uptick Rule, Short Selling controls, and suspension of Mark-to-Market accounting, our markets can normalize and so can our companie balance sheets. Please become an advocate for the American people by instituting these changethree changes that can restore investor confidence and significantly reverse our economic downturn.
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Re: Correction of Egregious Stock Market Manipulation Practices
Letter origionated here: http://messages.finance.yahoo.com/Stocks...