April 21, 2009
Uptick rule was removed in 2007 without any wait period. Why now we have to wait 60 days to re-instate the rule? The damage done to the investor confidence by removing the uptick rule was huge. Individual investors have lost confidence in the stock market due this short sellers. The short sellers control the market anyway they want there are no checks and balances. The SEC basically failed to protect the individual investor. Even for restoring the uptick rule is taking 60 days within these period, many damages are done by these short sellers. Naked short selling should be banned and made illegal. The argument that it provides liquidity in the market is not true. Practically, the short sellers bring down any standing company within a period of 30 days and get away with the funds. The assets of the failed company are looted at a fraction of a dollar. Government agency is to protect the individual investors and not to see the hedge funds interests. SEC should be investigating all the short sellers (as to who is selling and how they acquired the shares in one day) In current circumstances, any small lapse on the part of SEC will undermine the very existence of the agency. I request SEC to publicly investigate one banking company which was targeted by short sellers (say a stock value of $30.00 was brought down to $1 in a period of 5 months is a clear sign of short sellers target to bring down the entity). TV media put up some analysts who had no experience talk about the depressed company adds further fuel to the fire. CNBC, Bloomberg, Fox News etc. have been funded by hedge funds, short sellers. Also the rating agencies such as Goldman who has shorted Citi Group down graded to "SELL" on 4/21/2009. Such rating is based on Conflict of Interest. SEC should be investigating such acts and made public as soon as they start investigation that will be show deterrant on others. Because hedge funds are not regulated by Govt. public is unware who actually invested in those hedge funds and for what purpose. Last year Congressional hearing on hedge funds revealed that individual who was a high school drop out has made income of nearly one billion dollors in a single year. That glorified the hedge funds activity as a means of becoming rich in a short span of time. Hedge funds must be regulated and short sellers (naked)should be banned immediately. I will be happy to submit to your examination.