March 27, 2007
Comment re. RegSHO again
It is with a sad heart I again have to address this issue with you about the situation that you have already acknowledged. There are problems with RegSHO and yet you need further comments to arrive at a decision to do your job to protect the integrity of the security industry from manipulation. Shame, shame, shame.
I am one who believes I was scammed by illegal stock market manipulation and can not even get information about trading and what went on before a disaster struck. This is a grandfathered situation and just one of hundreds of companies that went out of business. This might not have happened had the company been given the opportunity to pursue growth in a fair market environment. Instead a decision to terminate the company and profit by the failure was the result. There is a loss of tax revenue of unknown proportions. This scenario could be multiplied by hundreds of companies and should never have happened.
The results of this episode in stock market activity should be hung in a museum of shame. There are many cases where the management and investors lost their jobs and money. In some instances retirement funds were heavily damaged. Employees lost their jobs with the future potential of a viable company with a product in operation in the field. The successful manipulators are encouraged by the ease they can make money and be free to move on to another victim is the most frustrating. This is most likely still happening.
A very well known hedge fund manager recently made a remark that the SEC doesnt get it. Manipulation is a way of life and necessary in some cases to survive in that field of investment. This subject is another that the SEC is reviewing. BIG DEAL. If youre as successful in that effort as with RegSHO, pray for us retail investors.
We need to require all the companies on the grandfathered list be subjected to the BUYIN option immediately. This is a normal activity and only completes the standard business transaction of covering the open short position. Possibly some companies will be able to raise enough money to reopen their facilities or restart operations do to the improved market capitalization.