September 29, 2009
Several investment companies have recently indicated their opposition to restoration of the uptick rule. Why not? Suspension of the rule allows them to make money by pounding down the stock price of targeted companies, to the detriment of smaller investors who have put their trust in the targeted stocks. The suspension of that rule contributed to the major financial problems we had in 2007-2008, a scenario that did not occur for many years until the rule was suspended. The SEC has a responsibility to regulate the securities business to protect the majority from the greed of companies like Goldman Sachs. Such regulation did not occur during the Bush Administration, but we elected the Democrats to change that policy.
I would ask that the SEC act in the best interests of ALL investors, not just the powerful investment companies, and restore the uptick rule at the earliest opportunity. We've allowed enough time for comment. Let's act before disaster strikes again.