May 19, 2008
I support the proposed rule to prohibit "naked" short selling by a seller of a security who does not own and has not borrowed the shares sold. I believe it should be illegal to knowingly deceive a person about whether shares are available to deliver before entering into a short sale, and should be prohibited if the person does not deliver the shares in a timely manner.
As is the case with my company, First South Bancorp, Inc. (NASDAQ: FSBK), I believe that market prices are currently being manipulated by naked short sellers. I encourage the SEC to exercise the authority it has had since 2005 and begin taking action against illegal short selling. If the proposed new rule will enhance the SEC's position to enforce its regulations, please adopt them as soon as possible.
William L. Wall