Subject: File No. S7-12-06
From: Michael Harris

April 4, 2007

How can you grandfather in illegal shorting activity? In my opinion this only protects criminals. Why would the SEC have a clause that protects people using illegal means to hurts companies and it's investors. The is SEC needs to move now to revoke the grandfather clause. I am not sure why there even needs to be a comment period. Naked shorting is illegal and the only way to fix the problem is to force those who did to cover their short positions. Why does the SEC need comments and opinions on an issue that is so cut and dry? Illegal activity should not be protected by the SEC. The SEC has a mandate to protect the investing public. So do your job and eliminate the grandfather clause. If the SEC does not eliminate this clause it will be clear the SEC serves to protect the Wall Street players leaving the common investor to the dogs.