March 29, 2007
The Grandfather clause forgiving all the past thefts against investors and corporations by naked short sellers demonstrates why market oversight can not be self regulating. For many years while these "grandfathered" thefts were occuring our SEC had spokespersons ( Annette Nazareth ie. ) out proclaiming that the problem was just a figment of disgruntled investors imaginations . Now that the SEC admits that the thefts do and have happened for many years a policy is initiated to forgive all the past thefts and just admit to new ones after they pass a "threshold" while providing no enforcement of any settlement requirement.
The hoax as it turns out is that a SRO could put the duty ahead of greed . The markets should be fully regulated by congress and fully transparant to the public. All transactions should promptly settle , all fraud should be prosecuted by such an agency , not denied , covered up ,forgiven or "grandfathered" .