Subject: File No. S7-19-07
From: matt j brinck, mr
Affiliation: medical

July 26, 2008

Recs: 73 Re: SEC Chair Cox suggests he "intends" to extent naked short probition to other stocks - leave an SEC Comment link
the SEC response is interesting but ultimately if LEH, MER, FNM, or FRE are going to fail then all the short sale restriction will do is increase the price (and losses) that investors would pay for the shares.

When the govt needs to step in and artificially change trading conditions for just a handful of stocks doesn't that mean that there is a very very big problem lurking out there?

If naked short selling was illegal then why has the SEC let people get away with it for so long? The put in reg SHO but there are stocks on that list for years because it can be very toothless.

If the SEC knew this was a problem then why did they abolish the uptick rule last year to let short sellers drive prices down by selling at the bid?

That having been said - there is no logical reason whatsoever that naked short selling reform shouldn't apply to all stocks and that it has been imposed on 19 stocks in one group is ridiculous.