Subject: File No. S7-12-06
From: Stephen Sossaman

August 7, 2006

I am astonished that naked short selling, after long being ignored or denied, is still tolerated, grandfathered, and perhaps essentially legalized, despite the SEC's mandate to maintain fair and orderly markets.

To clean this up and restore some faith in the integrity of the market and your oversight, you should hire (to rewrite your regulations) one of the many people here offering cogent, fair, and responsible objections to your proposals. Someone like William Lowe, of Harrisburg, author of an August 3 comment. Others are equally convincing.

The SEC should be actually leading reform efforts, but I worry that rather than correcting the problems, the amended regulations will simply legalize some of the abuses.