Subject: File No. 4-581
From: Dennis N Heffernan
Affiliation: Registered Series 7 (lapsed)

June 1, 2009

The uptick rule certainly needs to be reinstated. It existed to prevent the abuses that occurred in the 1920s and 1930s. With modern technology colusive, relentless raiding become even easier. And harder to prove and police.

Put the rule back in. An artificially low price caused by unfettered short sellers has a consequence for all taxpayers - since the rating agencies use stock price as an indicator of quality, which in turn led to government bailout of some banks.

Whereas an artificially high stock price (the usual reason short seller put forth for legitimacy) harms only the current and future stock holders.

In addition, firm, criminal prosecution for naked short selling would lessen the impact of reinstating the uptick rule.

I do not object to short sellers in principal, only uncontrolled shorting.