Congress prepares to bypass impotent SEC

Originally posted on 10/20/2009 by Judd Bagley

SB 605 is a bill on Capitol Hill

Something of great importance in our effort to finally end illegal naked short selling took place recently.

Senator Ted Kaufman of Delaware, together with three colleagues, distributed a letter to the remaining 96 members of the Senate formally requesting co-sponsors for SB 605: A bill to require the Securities and Exchange Commission to reinstate the uptick rule and effectively regulate abusive short selling activities.

You can find a copy of the letter and the bill itself here.

This is a very good sign that this most vital bill has momentum. However, this is always a very tenuous time for any bit of nascent legislation. That’s why I encourage all supporters of true market reform to contact their US senators (remember you each have two!), encouraging them to co-sponsor Senate Bill 605.

Every additional co-sponsor’s name added to the bill reduces the likelihood that backroom shenanigans — something at which our adversaries are experts — will kill our best opportunity for true reform yet, while still in its cradle.

Please reach out to your senators today. Click here to find his or her contact information.