November 28, 2006
As president of a small, stock-owned bank holding company, I wish to express my displeasure at Nasdaqs proposed price increases. Companies such as ours at the bottom end of the fee structure are looking at an increase of 22.5% . We understand that Nasdaq intends to offer some additional services as justification for the increase, but the volume of these services has not been fully specified, and we currently spend significantly less on these services, even if Nasdaq replaces them in full, than the proposed increase in Nasdaq fees.
It is somewhat ironic to see this proposal from Nasdaq--an entity that represents the best of American capitalism, perhaps the worlds best illustration of the power and potential of the small-cap market. Nasdaq exists as a near monopoly today, and even in a capitalist economy, monopolies must be tolerated where competition cannot survive. However, Nasdaqs proposal would monopolize sub-industries that already exist healthily and competitively. I see this as a disservice to both Nasdaq members and to the spirit on which capital markets are based. We hope Nasdaq will withdraw their proposal.
Kentucky First Federal Bancorp.