The SEC led by its new Chairperson Mary Schapiro is attempting to refurbish it’s reputation and taking an aggressive stance against Insider Traders and malignant Hedge Funds and this is no doubt a good thing. But it will protect a handful of accredited rich guys and a few big companies who allegedly should know better than to get burned by these nefarious characters. Heck I have heard members of Congress and Business calling for the legalization of insider trading similar if not identical to what this latest batch of arrestees is accused of.
How about the SEC make a name for itself again amongst the little guy? Anybody with an E-mail address has been targeted by penny stock pump and dumpers, stock picking robots, and other fool proof investment scams. They populate the twitter world, the blogosphere and worst of all the Stock and Investment forums. Folks that set up hundreds of internet identities, websites, and phony public relations outlets designed to influence the price of a stock, or just take the money of the unsuspecting.
It makes for great press when some hedge fund manager gets perp walked into the Manhattan Courthouse, but you’re looking at a guy in most cases who stole a million from a billionaire. I’d like to see the swamp drained from the bottom and get the miscreants who are taking bread money from the small time investor.
I love to see the newbie investor make good in our business, it’s stacked against them when everything is on the up and up. When they are killed off by the swarm of remoras before they even have a chance to prove their mettle against the sharks it hurts our business and the public perception of the markets. Seems to me a few savvy traders with a couple of laptops and a mandate to shoot down the small time slimeballs would go a long way to cleaning up the reputation of the business and the markets. This might bring in a lot of money that hitherto has been sitting on the sidelines.
So how about it Ms. Schapiro, how about striking a blow for the little guy? Advocate for the majority of people to whom you swore to serve, and sweep the floor, not just dust off the credenza.
