September 12, 2007
Ladies and Gentlemen,
Naked shares of NFI hedged into the market by options market makers have now exceeded 150% of the entire issue. The figure gets bigger every day. That figure, added to the over 92% legally shorted plus the actual real shares, makes the shares trading in the market nearly 3 1/2 times the entire NFI issue.
And yet you wonder why over 50 multinational companies have delisted from the NYSE this year.
The folks who bought all those IOUs thought they were buying, and were led to believe they were buying, actual shares of stock. To a person, not one of them would have knowingly purchased a
..... "PROMISE TO DELIVER THE STOCK AT SOME UNSPECIFIED DATE IN THE FUTURE, IF EVER, MAYBE".....
and paid the same price as they would have paid for the actual shares they thought were being delivered at T+3.
End all naked shorting of all kinds. Enforce "prompt delivery" in every transaction without exception. That is in your charter. Anything less is condoning fraud and there is no excuse for it.
You folks should be ashamed this has happened on your watch.
Bruce