Dear Friends and Family,

Some good news: the SEC will meet April 8th to consider whether to reinstate short sale price test rules, including the uptick rule—originally adopted after the 1929 crash and repealed in 2007. The SEC will also explore additional short-selling restrictions. Meanwhile, the Obama administration is proposing a broad financial regulatory overhaul to prevent future banking crises. More to come in future letters.

April 15th is fast approaching! If you haven’t made your 2008 IRA contribution yet, now is the time. We also encourage early contributions for 2009, if feasible.

You may have received dividend election notices for DDR and CBL. The IRS now allows shareholders to elect either all cash or all stock. If no election is made, 90% stock and 10% cash is the default. We recommend selecting cash and will make these elections on your behalf—no action needed.

For clients who own Frontier Communications (formerly Citizens Communications), a mispriced value in June 2008 led to overcharging of management fees. We will credit affected accounts this month based on share count at that time. We’ve corrected the issue and will prevent recurrence.

Sincerely,

Katz Family Financial