Subject: File No. 4-573
From: Jon Hale
Affiliation: Partnership Consultants, Inc.

October 20, 2008

Partnership Consultants, Inc.
2477 Stickney Point Road, Suite 301-B
Sarasota, FL 34231-4071
941-923-5836 (fax) 941-923-8769
October 20, 2008

2-Step Plan to Save the Financial Industry
By: Jon Hale, President, Partnership Consultants, Inc.
(With acknowledgement and thanks to Alex J. Pollock,
Resident Fellow, American Enterprise Institute)

Step 1: Fast track the implementation of the liability provisions of SFAS 157. This Accounting Standard requires institutions to mark their liabilities to market or what SFAS 157 refers to as fair value.

Step 2: Petition the debt rating institutions (such as Fitch and Moodys) to down grade ratings on the debt of financial institutions.

Now sit back and let the plan work.

Bottom line: SFAS 157 (a/k/a FASB 157 Fair Value Accounting Standards or "Mark-to-Market Accounting Standards) requires institutions to revalue their assets and liabilities in accordance with exchange prices or some market. A reduced credit rating reduces the market value of the subject Company's liabilities. Following the guidelines of SFAS 157, any reduction in liabilities becomes income and ends up on the balance sheet as shareholder equity. Income is up. Shareholder equity is up. Problem solved

Caveat: Avoid contributions to equity, such as contributions from the Government or from new shareholders, since such actions could improve the financial institutions debt ratings, generate a loss due to increased value of the liabilities and undo the plan set up by SFAS 157.