NO QUARTER FOR CORRUPTION (Focussing on The Fed./FRBS)

[Telephonics]

The NASAA Forum I attended on Thursday was designed to discuss naked short selling effect on small business within a system that tolerates failure to deliver securities to a buyer within the 3 day limit from the sale date. Failure to enforce this rule presents a huge opportunity to unethical naked shorters. The intent of the current regulations is to make every share authorized by a company eligible for shorting. But failure to enforce delivery destroys the equality the SEC seeks. It would be a very simple act by the SEC that would effectively stop all naked shorting. Prohibit and transfer of funds from a margin account until the shares concerned are delivered to the buyer-and of course strictly enforce this rule. The American investing public have every right to demand a level and legal playing field. After all it is their money that is being ripped off.
Further evidence of the SEC reluctance to take action is seen in the SHO itself where all non-deliveries prior to the date the act became effective are grandfathered. That means legal or not they will not be looked at. But the DTCC still refuses to admit that these fails still exist or not. They have refused to release such information-even to the company whose shares are involved and who may have been forced into bankruptcy by the naked shorting of their shares. Today 4% of all trades are grandfathered. There are about 7000 company's on the regulated exchanges in our country. Jessie James and the Dalton Brothers had a much harder job ripping off their victims than those who hide their illegal trading behind the curtain of the DTCC.