Subject: File No. S7-20-08
From: Steve Berman

December 10, 2008

Comments attached:

Banks will be taking huge charge-offs and reserve building actions in 4Q and in 2009. Why wouldn't you act now to moderate the fears that will only be compounded by not having uptick rules reinstalled and also address the detrimental impact of 2X short sale ETF's.

Price action alone adds to the fear in the markets and can be self-fulfilling and harmful to small and large investors who simply assume the market's are always right. Action is needed now, not when the stock collapse is underway. Get ahead of this risk by acting immediately to update your rules on short-selling. Reinstall the old uptick rule, and see if something can be done to limit damage to market liquidity caused by 2x short ETFs.