March 15, 2009
15 March 2009
Dear Honorable Mary L. Schapiro:
First, congratulations on your new role. I wish you the best.
May I ask you to revisit the letter that Mr. F. William Capp, the President and CEO of Beacon Power Corporation wrote to you on January 13, 2009, and my letter of January 11, 2009 which is on SEC#8217s docket for #8220Disclosure of Short Sales and Short Positions by Institutional Investment Managers (Interim final temporary rule) Release No. 34-58785 File No. S7-31-08#8221.
The direct link to these articles are:
I heard your fine nomination hearing and was happy to hear that you want to protect investors. The SEC, before your time was more about protecting Wall Street. This is not merely rhetoric. I am happy you are looking to reinstate the uptick rule. Additionally, what is really hurting small companies is toxic financing where a financier shorts a stock heavily and provides financing that allows him to get low price shares and have his short position protected by warrants. These vultures are presently protected by the SEC that has decided not to release their names.
The SEC has decided not to disclose the identity of short sellers so a competitive situation among shorts is not created (this is an utterly lame argument). But it does disclose identity of large longs. This absolutely makes no sense and is an excuse the previous SEC used to protect these vultures. The letters above discuss this in further detail and the impact of this irresponsible SEC practice on small companies and investors. It is hurting investors and the small innovative companies we invest in. PLEASE TELL US WHO THE LARGE SHORT-SELLERS ARE. You have the data. Why hide it from public?
Please protect us Chairwoman Schapiro, we need your help. We need to know if the next guy who comes to us offering us money is one of the people who has short-sold almost 10 million shares of our stock or not. Help protect us against these vultures. If the SEC doesn#8217t do this job who should? You are suppose to be policing the crooked elements on Wall Street not helping them by keeping their identities confidential. There is absolutely no reason for it other than sympathy. Please stop SEC#8217s sympathy for short sellers and protection of toxic financiers.
Thank you and good luck in your new role.