Subject: File No. S7-20-08
From: GERARD BALIAN, MR.
Affiliation: RETIRED

July 26, 2008

DearMr.Cox, I have met you to some fund raisers in Newport Beach several years ago, and I must say, that your performance at the elm of the S.E.C does not impress me.
You should defenetly tye the shorting of any stocks to the book value of a corporation and they cannot be shorted below their true value. They can only be shorted if a corp. is showing on a quarterly basis that their bottom line has not been met and the shorting can not excide below the real book value by 10 % from what the balance sheet will show in term of profit and in this case loses. The logical thinking is to have the value of the balance sheet show when a corp. does not make it. When a corporation lose money it automatically lower its book value represented by the loses that it has incurred.
That way no one can manipulate the market by colusion, as it is happening right now in the past twelve months. That way a corporation can only be revised on a quaterly basis and now at the mercy of hedge funds who are shorting everything in site, since it is the only way they can make monies by colusion, since no new businesses are created. If you need any help on that matter I would be more then happy to show you by reviewing the daily transaction of the markets.
Please apply the review on short selling (naked options) to all the traded companies that are listed on the stock markets.
I would also go further to impose a law that will change the compensation of CEO's and the likes, to receive a pay equal and not higher then 25 times the minimum wages and the bonus they receive at the end of year not to excide the value of they total pay for the year. That way you will be able to keep inflation under control and specially the horting of the coffers of a company by individuals who have no scrupules.
Please let me know what you have in mind in the near future, I can wait to hear your answer. Thank you in advance for reading my e-mail.