So where is the SEC these days? They are busy checking how the big investment banks are marking their mortgage and other asset backed positions. While that is going on here is what the SEC is also doing:
- Eliminating the short sale up-tick rule to allow short raids on stocks. This rule was put in place in response to the 1929 crash. For what reason was it lifted now?
- Standing aside while slum dunking of options on ETFs and stocks related to ETFs takes place.
- Allowing unsubstantiated rumors to be spread to the financial media despite lack of validity or corroboration.
I fully respect the SEC’s role in the financial markets. What I am saying is that there are many other issues which that regulatory body needs to address in very short order to protect shareholder rights and ensure investor confidence.