Lawmaker Calls for Return of 'Uptick' Rule
Couldn't help but notice Charles Schwab advocated this:
"This is a critical and necessary step to reduce volatility and restore investor confidence" Schwab wrote in a letter to lawmakers. "The SEC should move on its own to restore the uptick rule, but if it won't, this legislation will compel the agency to do so."
Sadly I think nothing was done...
uptick wiki (discussion tab good too)
I would say that if one can legally view through another amendment to the investment company acts perhaps that Security Lending would violate a fiduciary duty as well as be legally treated as malfeasance by the custodians and if the brokerages were prevented from pairing margin accounts with lending out stock that we would be miles ahead of any uptick rule...
simply put you would not lend out your house to someone that will destroy it unless you think you will be compensated for that risk... lending fees for securities lending and being allowed to use margin features are not reasonable compensation for the risks of "lending your house on Pacific Heights to Charles Hayes" /lending out your stock marauding short sellers.
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