February 7, 2022
I am in favor of this rule. Im nervous that rules such as these will not be properly enforced but I think this is a start on the proper path.
It has become clear to me in the past 2 years that the markets are not the models of supply and demand that they appear to be. Broker-dealers are able to commit fraud and manipulate securities, knowing that even if they get caught they will only be paying a fine for their crimes. A fine is only punishment if it is MORE than what they earned during their fraud. That being said, I dont think fines are an adequate punishment even if they are hefty. If the average American were to steal money equal to what they earn with these practices theyd be incarcerated.
Abusers of the system do nothing but enrich themselves and hurt the rest of America. They should be treated as such. Jail time should be the minimum.
I believe that the broken window theory can be applied to the markets. One firm getting away with crime (I.e. breaking a window) will increase the likelihood of others following suit. Obvious manipulation will also affect the markets in the long-term if foreign trust in them is lost.
I believe that Gary Gensler is, up to this point, trying to do what is best for his fellow citizens. I only hope that the rules will start to be appropriately enforced.