Wednesday, October 8, 2008

Broker Short Sale Letter

"October 8, 2008

Dear XXXXXXXXXXX clients,

IMPORTANT MESSAGE:

The SEC has modified and/or extended its emergency orders regarding short sales as follows:

Financial Companies

Now that the President has signed the Emergency Economic Stabilization Act
of 2008, the SEC order prohibiting the short selling of securities of financial institutions will expire at 11:59 PM Eastern Time tonight, Wednesday, October 8, 2008. This does not mean, however, that all of the financial-related stocks that were on the SEC and exchange lists will be available to sell short. After the expiration date noted above, normal "locate" procedures shall resume for these securities. All short sales will continue to be subject to the enhanced delivery requirements described below.

Hard T+3 Close-Out Requirement

The SEC has extended its "enhanced delivery requirements" emergency order until 11:59 PM Eastern Time on October 17, 2008, although the Commission intends that the order will remain in effect beyond that date without interruption in the form of an interim final rule. Consequently, the procedures outlined in our message to you dated September 19, 2008 are still in force. This means that if you sell an equity security short, and there is a failure-to-deliver on the securities you shorted by settlement date (T+3), we will close out your short position no later than T+4.

You are reminded that you will receive NO FURTHER NOTICE prior to our closing out of any positions in compliance with the SEC Order.

Also, any losses suffered or lost opportunities realized as a result of any such buy-ins to comply with the SEC orders will be solely your financial responsibility.

For additional information, please visit the SEC website at www.sec.gov or contact the Trade Desk at (XXX) XXX-XXXX."

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