Subject: File No. S7-12-06
From: Kb Bus
Affiliation: none

March 13, 2007

The Grandfather Clause in Regualtion Sho is illegal. The constitution states that it is illegal to counterfeit US currency or securities. Not only are the counterfeiters criminals, so are the SEC executives in charge, as well as US Senators, and Representatives who watch and do nothing as our market is destroyed further.
These people stepped down for a reason. A recap of recent SEC resignations:
1/19/2005: Patrick Von Bargen, Managing Executive for Policy and Staff, to Leave Commission 2 years
2/18/2005: Paul F. Roye, Director of the Division of Investment Management, Announces Intention to Leave the SEC 8 years
3/9/2005: Spencer Barasch, Head of Enforcement for the SEC's Fort Worth Office, to Leave the Commission 10 years
4/14/2005: Enforcement Director Stephen M. Cutler to Leave Commission 7 years
6/1/2005: SEC Chairman William H. Donaldson to Step Down on June 30 2.5 years
6/30/2005: Matt Well, Director of Public Affairs, to Leave the Commission
6/30/2005: Peter Derby, Managing Exec. Ops Management leaves after 10 years. He founded the the first private Russian bank and the first Russian investment firm
6/30/2005: Joseph Hall, Managing Executive for Policy, to Leave SEC 2 years (Hall also worked for Reuters)
7/6/2005: David Kornblau left Commission. He was Chief Litigation Counsel of the Division of Enforcement. 10 yrs
7/21/2005: Martha Peterson, Counselor to former Donaldson to leave commission
8/8/2005: Sandra Harris, Asso. Regional Director and Co-head of Enforcement for the SEC's Pacific Regional office in Los Angeles. Harris was charged with oversight of prosecution for violations in nine western states. She had been there for 18 years.
8/15/2005: Harold F. Degenhardt. District Administrator, in the Fort Worth office leaves after 10 years.
9/7/2005: Donald Nicolaisen, Chief Accountant, US Securities to leave commission. 2 years
11/1/2005: David B. Smith, Jr., Associate Director, Division of Investment Management, to leave commission 9 years
11/4/2005: Andrew D. Bailey, Jr., Deputy Chief Accountant, US Securities and Exchange Commission, to leave SEC 1.5 years
11/30/2005: Giovanni Prezioso, SEC General Counsel, to Leave the Commission 3 years
12/6/2005: Meyer Eisenber, Deputy General Counsel and Acting Director of Division of Investment Management, to retire from SEC
12/21/2005: Lawrence A. West, Asso. Director of Enforcement leaves after 12 years
12/30/2005: Larry Bergmann, Sr. Asso. Director in Division of Market Regulation retires after 25 years
1/11/2006: Alan Beller, Corp Finance Division Director to leave commission (5yrs)
3/7/2006: Randall Fons, Head of the SECs Central Regional Office, to leave the Commission (9yrs)
3/14/2006: Jim McConnell, SEC Executive Director for 20 years leaves.
4/13/2006: Richard Wessel, District Administrator of the SEC's Atlanta District Office, to Retire Rich has made a significant contribution to the work of the Commission during his 32 years of service as the District Administrator of the Atlanta District Office, as an Associate Director of the Division of Market Regulation and as a member of the Division of Enforcement in Washington, D.C
5/15/2006: Glassman, a commissioner, leaves Commission
5/18/2006: Paul Berger, Associate Director of Enforcement, to Leave Commission
6/6/2006: Susan Ferris Wyderko, Director of the Office of Investor Education and Assistance, to Leave Commission
Let us recap the titles of those individuals who left the Commission between 1/19/2006 6/6/2006
Managing Executive for Policy and Staff 2 years
Director of the Division of Investment Management 8 years
Head of Enforcement for the SEC's Fort Worth Office 10 years
Enforcement Director Washington, DC 7 years
SEC Chairman 2.5 years
Director of Public Affairs
Managing Executive. Operations Management over entire SEC 10 years
Managing Executive for Policy 2 years
Chief Litigation Counsel of the Division of Enforcement 10 years
Counselor to former Donaldson
Associate. Regional Director and Co-head of Enforcement for the SEC's Pacific Regional office 18 years
District Administrator, in the Fort Worth office 10 years
Chief Accountant 2 years
Associate Director, Division of Investment Management 9 years
Deputy Chief Accountant, US Securities and Exchange Commission 1.5 years
SEC General Counsel 3 years
Deputy General Counsel and Acting Director of Division of Investment Management
Associate Director of Enforcement 12 years
Associate Director in Division of Market Regulation 25 years
Corp Finance Division Director 5 years
Head of the SECs Central Regional Office 9 years
SEC Executive Director for 20 years leaves
District Administrator of the SEC's Atlanta District Office 32 years
Sec Commissioner
Associate Director of Enforcement
Director of the Office of Investor Education and Assistance

The Grandfather Clause of Regulation Sho is illegal. I urge you to enforce your own regulations concerning naked short selling.