Subject: File No. S7-08-09
From: George Boyer

May 10, 2009

Eliminate naked short selling.

Eliminate the borrowing of shares of stock by Short sellers from someone else's account who does not want their shares "borrowed".

Penalize short sellers who fail to deliver the stocks that they have shorted but now could not deliver at settlement.
Short selling using borrowed shares should be regulated. Who are the short sellers borrowing these shares from? Shortsellers are borrowing the shares from long term investors who normally want the company stock prices to grow.
Your rules are allowing long term investors to be hurt by shortsllers who use the long term investor shares without getting the owner's approval.
This is personal property that is being crushed by shortsellers. Would you ever permit shortsellers to use your house without asking you first? Or use your car without asking you?
So why is borrowing stocks by shortsellers any different? Short sellers would trash your house and your car and then ask to buy it back at a fraction of the price it was once worth.

I do not want anyone to use my shares of stocks to short them and thereby hurt me with my own stocks. How can I stop this? Tell me and I will pass the word on to other investors.

This is could be easily fixed with a rule that requires a broker to obtain permission from the Owner of the shares before they can be sold by a customer that wants to short the stock.

Of course, you then see how ridiculous it would be. No long term investor would give their permission would they? It would shut access to borrowed shares down quickly.
Do not allow short sellers to use other people's stock holdings without their permission.
Show some respect for long term investors in the stock market instead of catering to short sellers and creating a giant industry of ultra short funds that rely on access to supply of borrowed shares.