The problem here is not just with counterfeit shares, but also with the naked shorted "air shares". TWO DIFFERENT THINGS. The counterfeit shares are the responsibility of the regulatory agencies. If they are asleep at the switch, they will allow counterfeit shares to get into the system. The MMs/brokers are not responsible for trading what these agencies allow them to trade.
The "air shares", however, are a different matter. The brokers took our money, selling us, not just counterfeits, but shares that didn't even exist.
So, the burden of "making us whole", as you say, lies either with: A) the regulatory authorities, or B) the MMs/brokers, depending on whether we received counterfeit shares or air shares.
"They the broker then would need to go after the counterfeiter. Not us."... The brokers don't go after the counterfeiter, the regulatory agencies do. Also, the brokers are not going after "us". As a matter of fact, they're leaving "us" alone.
"Some how this has been turned upside down."... Yup, but not the way some people think.
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