July 23, 2008
Dear Sir/Madam:
According to your website:
“The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
http://www.sec.gov/about/whatwedo.shtml#intro
The fact that the SEC has chosen to selectively enforce rules to favor the primary dealers is testament to a failed mission. Furthermore, the SEC’s recent actions have investors all over the world wondering if the SEC’s mission statement should be rewritten as follows:
“The mission of the U.S. Securities and Exchange Commission is to protect primary dealers, maintain unfair, disorderly, and inefficient markets, and facilitate capital destruction.”
Does the SEC’s current policy of selective enforcement not effectively mean that primary dealers also have the SEC’s blessing to perform illegal naked short selling and pooled short selling of precious metals shares (or any shares for that matter) in order to boost their own bottom lines at the expense of long investors? In the current environment, why would anyone invest long in U.S. equities other than primary dealers?
Obviously naked short selling and pooled short selling are pervasive problems otherwise the SEC would not have chosen to selectively enforce rules in favor of primary dealers and primary dealers alone.
Sincerely,
Charles S. Vallieres