The King Is Dead, Long Live...
Annette, as you may or may not be aware of, is married to one of the New York Fed Governors - you know, one of the guys who runs the system of which the DTCC is a part - the privately owned Federal Reserve Banking System (whose Federal Reserve banks are all privately owned). For anyone that doesn't know it, the U.S. is the only modern first world (or second world, for that matter) country that has a privately owned central banking system. Kinda makes you want to ask why that is, and who owns the banks that print the money for the country, but that is a different subject. Suffice it to say that 99% of the U.S. believes that the Federal Reserve is a part of the government, when in fact the only thing governmental about them is the Federal Reserve Board, the oversight and advisory board that Greenspan chairs, which does have government oversight and is a quasi-governmental agency.
Anyhow, Annette is noteworthy because of her "let them eat cake" pronouncements when investors correctly noted that it appeared that the SEC had allowed the system to conduct sanctioned bear raids on the Regulation SHO list companies, presumably to shake loose shares from those receiving margin calls and being stop lossed out of their savings, so that the participants who had Failed to Deliver could solve their problem with sweetheart deals on cheap shares at the expense of Joe Sixpack, whose retirement was vaporized to create the "buy side liquidity".
When this ugly suspension was pointed out to her, did she immediately initiate an ivestigation of the specialists and market makers, to see whether the sell side pressure had been legitimate selling or manipulated selling in order to create a downward spiral? Of course not. The same specialists who two months later would be sanctioned for being outright crooks would never do anything that dishonorable. Instead of even giving it a cursory look, she went on record with her unique perspective that investors were basically a bunch of whiners who were angry their stocks hadn't gone up. Joe Sixpack could just buck up, and get used to the idea of working a fast food gig into his seventies, so that Wall Street could cover the shares they'd sold and never delivered, at fire sale prices. I mean, it's not like they made a fortune selling the shares naked in the first place or anything. Why would they want to actually have to cover them and lose money? When you are talking hundreds of millions of shares, every few billion dollars counts.
Honest. Couldn't make this up.
Even as the daily fails were in the 150-200 million PER DAY range, she was blaming the investors for being ingrates, and ignoring the odd propensity of most of the SHO list companies to experience 30, 40 and 50%+ declines in their prices in the first 3 months of this year, when one would have expected that buying to cover the fails would have had the opposite effect.
But Annette never met a short seller or a Fail to Deliver she couldn't love. And the investors that were being fleeced out of their life savings and their retirements were speculators who deserved what they got. It was the first time any SEC employee had ever gone on record with such an arrogant, high handed and dismissive stance.
But she wasn't fired or disciplined. Instead she was tendered the Commission's highest honor.
Even the WSJ withdrew their support for Annette, recognizing that you couldn't have selected a worse chairperson, but no matter.
Does anyone feel a little sick?