April 20, 2022
Let's just call this what it is, instead of dancing around the bush with complex legal terms.
Creating a new type of financial transaction and allowing it to reset/replace old financial transactions is called laundering. This rule would make it legal for institutions with a huge pile of short positions that have gone tits up and resulted in huge amounts of debt to recycle those positions so they don't have to close them in a timely manner.
All shorts must close. All debts must be paid. There is no such thing as too big to fail, and legalized criminality like this should never have been even considered by a supposed regulatory agency like the SEC.
You should be ashamed. If this passes you are just helping the criminals.
The SEC should be doing its job and protecting investors. Investors are protected by holding institutions accountable for closing out the risky investments they made and closing their short positions in a timely manner.
Gamestop has seen FTD's every day for over a year and has reached the short restriction threshold multiple times. Yet nothing has changed and short holders continue to FTD with no repurcussions. When will the shorts close?
The shorts must close. They absolutely must not be allowed to keep kicking the can. This is criminal.