Mar. 23, 2023
March 23, 2023 It is honestly difficult to believe that the SEC cares at all about protecting the interests of household investors at all when it has the audacity to even propose exemptions for big players who are deemed smart money and already have a plethora of unfathomable advantages against the working class investors who are the backbone of this country. Respectfully, the absolute delusion that the SEC thinks it can successfully look like it cares about the interests and finances of average-Joe investors after even daring to propose this rule with exemptions, especially if this rule passes is incredulous to me. How could you propose to prohibit conflict of interest and come up with exemptions for risk-mitigating hedging activities, bona fide market-making activities, and certain commitments by a securitization participant to provide liquidity for the relevant ABS within the same rule? If a market cannot provide liquidity without exemptions for big players for common sense rules, that is a symptom of a larger issue and exemptions are only going to exacerbate the problem. Besides, if an underwriter, placement agent, initial purchaser, or sponsor of an ABS, including affiliates or subsidiaries of those entities whom might get exempted for risk-mitigating hedging activities, bona fide market-making activities, and certain commitments by a securitization participant to provide liquidity for the relevant ABS have even more of an incentive to manipulate things in their favor. The fact that this rule is called Prohibition Against Conflicts of Interest in Certain Securitizations which sounds benign but has an exemption for big players at the bottom is obfuscating the true intentions of whoever wrote this. Its manipulative and it takes advantage of the average household investors who actually have to work and dont have a lot of time to figure out if they are getting bamboozled by the wordings of an SEC rule proposal. Please do the right thing for household investors. If everyone loses faith and integrity in the U.S. stock market because once again, rules are in the favor of big players, people are going to find other investment vehicles outside of the stock market regardless if it is less regulated and is outside the jurisdiction of the SEC. With the advent of the Internet, itll happen quickly than youd ever expect. People are having a hard time with housing and putting food on the table.