American citizens and membership of Lloyds

Dear Beverly,

In follow up to our earlier conversation about US Securities Law preventing American citizens from investing in Lloyds of London.

Why would the American Government be the one to pass laws preventing American citizens from investing in Lloyds following “Reconstruction and Renewal” which followed the huge losses sustained by American “members/investors” of Lloyds, and again, which made it illegal for American citizens who were not already “members”, to invest in Lloyds?

Surely it makes more sense for the British Government, since Lloyds are based in the UK, to be the one to pass laws protecting Lloyds from American “cry babies” who when they don’t play by the rules that they agreed to when becoming members of Lloyds, then go about filing the most frivolous of frivolous lawsuits?

What am I missing?

I am still totally bewildered.

Not to mention to “reinforce” the “strength of conviction” of those passing these laws, they even made it illegal for you to send marketing material to the United States, as it suggests that much more, that Lloyds are the “transgressors”.

My only agenda is to get to the bottom of the “logic”, and of course it is very possible that I am missing a very simple point.

Should it turn out that I am totally stupid, then I promise you that I will be the first to admit it and “be on my way”.

The “rules” as I understand them and which Lloyds have had in place for “donkeys years” state very clearly that investors-members of Lloyds could lose their entire net worth should Lloyd’s syndicates lose more monies due to “unforeseen losses” such as “the sky falling out of the heavens”; i.e. these syndicates did not adequately reserve for losses, which to take it a step forward without going totally overboard, would mean they hadn’t predicted accurately enough that there could be possible fraud by the managers of these syndicates, who didn’t find another insurance syndicate elsewhere, if Lloyd’s syndicates weren’t willing or able to insure against “management frauds”.

By banning American citizens who are not already investors in Lloyds, from investing in Lloyds, isnt the United States’ Securities Exchange Commission in passing these laws saying that Lloyds is a “bad” organization and/or that Americans are simply too stupid to understand the very simple rules they all agreed to?

Let me quickly move on to our neighbors further north. Are the Canadians also too stupid to think for themselves? What, if any laws have they passed to protect their citizens from Lloyds?; and by that I don’t mean whether Canadians before taking a pee and flushing, have to first call up their Prime Minister, who then needs cabinet approval on the next glass of water to be drunk which could trigger another pee, because Canadians who have allowed their government to sell everything worth talking about, think it is better that Americans be healthier than them, and allow Canadians to first die of thirst rather than charge America more for the water that Canada provides as well as electricity, which could have America possibly invading Canada if any other problem arises?

You may think this previous paragraph is superfluous, and distracts when considering the very serious questions I have, and which I have thought long and hard about. Sometimes humor is needed to “break the ice”.

Seriously, this entire situation seems totally preposterous.

Does not the SEC take into account that not only did American investors make huge sums of money before this collapse which clearly didn’t put Lloyds out of business, but Lloyds continues to sell insurance to Americans because they obviously think Lloyds is a “good bet”?

At the same time the SEC is saying Lloyds is a “bad choice”.

I look forward to your response.