July 30, 2008
Shorting rules need to be changed
I AM OUTRAGED AT THE SECS FAILURE TO REGULATE NAKED SHORT SELLING AND RELATED ACTIVITIES (phony analyst reports, false rumors, etc). Chairman Cox, NAKED SHORTING IS NO DIFFERENT THAN COUNTERFEITING IF THE SHARES ARE NOT LOCATED AND DELIVERED. COUNTERFEITING IS A CRIME.
I beg you – PLEASE restore the uptick rule, ENFORCE RegSHO with criminal penalties, break trades before settlement if shares are not delivered. These actions must be taken to protect Americans and our businesses. To apply special restrictions to Fannie Mae and others is a discriminatory policy that does nothing to protect the hundreds of other companies and their investors who are under attack on a daily basis.
SANGAMO BIOSCIENCES (SGMO) is a very promising California company with clinical trials underway for HIV, Diabetic Neuropathy, as well as partnerships with Dow Agro and Sigma Aldrich for a variety of other food and energy opportunities. SGMO has been relentlessly shorted and regularly has nearly 25% of its shares short. SGMO has been on the RegSHO threshold list as long as I can remember. SGMO employs good people, has very promising technology, maintains a loyal and knowledgeable investor base, and is being systematically attacked by naked shorts. What will the SEC do to protect SGMO, its employees and investors from this crime?