From: Angela Varnava [angela_varnava@hotmail.com]
Sent: Sunday, July 21, 2002 7:55 PM
To: rule-comments@sec.gov
Subject: speculative short selling (s7-24-99)

  
Dear Sir or Madam,

 

Impelled by the market's latest performance, but also the Congress' 
solicitude to restore investor confidence and attend to the matter of 
accounting scandals, I would like to give voice to my disquietude.

I am deeply concerned about the fortune of corporate America and not 
only. I feel the nation's prosperity and well-being is being jeopardized, 
as some, greedy and conscienceless and why not traitors, in my view, 
are taking advantage of a situation, at a time when the nation faces 
numerous predicaments.

I will try to be more explicit. It is obvious the market now is under 
the control of short-sellers. I am aware of the fact that short-selling 
provides equilibrium in a healthy and vying market but I feel things 
have got out of hand.  The fact that investors are fleeing the market 
is not only due to the lack of transparency on behalf of corporations 
and the number of accounting frauds that have seen the light of day. 
It is also due to the fact that speculative hedge funds are shorting 
stocks with no remorse or distinction, infesting the average investor 
and driving firms to despair as their viability is at risk. 

What is taking place right before our eyes is what I call financial 
terrorism. A form of terrorism, I'd dare say, much more dangerous and 
devastating than that of Bin Laden and his supporters. One could easily 
imagine what the consequences could be if the matter is left unattended 
to any longer.

 

I therefore strongly believe, an act to impose stiff penalties for 
those who commit fraud, will not be sufficient to restore confidence 
in corporate America and get the market and consequently the economy 
back on its feet.

What is needed are provisionary drastic measures against speculative 
short selling. Only the intrinsic holder of a stock should be permitted 
to sell the stock.

Japan represents an evident example.

A bold swing is needed to get out of a vicious circle and now is the 
time to act.

I hope and trust you will give the above issue the fitting notice as 
the whole system is at peril and when the system is at peril so is America.

 

Sincerely,

 

Angela Varnava & Nickolas Drouzas



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