Subject: File No. S7-12-06
From: John J. O'Brien
Affiliation: Retired Professional Engineer

July 20, 2006

July 19, 2006

Re: Comments on Proposed Amendments to SHO: File No. S7-12-06

Immediately abolish from Regulation SHO the hideous grandfather clause and return the word "integrity" to the SEC Mission Statement.

Also provide meaningful penalties for those found guilty of criminal conduct by requiring compensation to injured parties proportional to the damages caused.

Also remove the phrase "without accepting or denying" a felony from the SEC lexicon.

Abolish the self replenishing Stock Borrow Program and replace it with a system that permits only one share to be in circulation per outstanding share authorized by the issuer. Let honesty be a guide.

Impose hefty fines coupled with license withdrawal on repeat offenders failing to deliver sold or shorted securities by T+10

Dont fire those who uncover evidence of wrongdoing. Subpoena all evildoers particularly those with connections in political office. Dont discourage whistle-blowing its a tool that works.

Return a sense of morality to all levels within the Securities and Exchange Commission. The SEC is not a Corporation.

Thank you for this opportunity to comment.