Sean Duffy: “First, I want to thank Chairman Crenshaw for yielding and engaging in this colloquy and for all his hard work on the…”

“First, I want to thank Chairman Crenshaw for yielding and engaging in this colloquy and for all his hard work on the Appropriations Committee, and specifically on Financial Services, as he navigates this last, final bill through the House floor. We are all grateful for his hard work. {time} 1830 Mr. Chair, the amendment I was planning on offering tonight is related to my concerns with the potential market abuse surrounding the shorting of the stocks of small pharmaceutical companies. I am concerned about a new tactic by some market participants. There has been recent reporting in The Wall Street Journal and in the Financial Times that reveals a deceptive and manipulative practice by some hedge funds to challenge the legitimacy of a drug patent while simultaneously shorting the drug manufacturer's stock. These particular hedge funds game the system. What they do is short the stock. Then they publicize numerous patent challenges and provoke fear in the marketplace, drive down prices, and make a lot of money. I think this warrants further examination by the SEC's Division of Enforcement for potential violations of security law. I also believe the SEC should consider enhancing the disclosure regime for short positions. Increased transparency, Mr. Chair, could help combat these types of attacks.…”