Subject: File No. S7-34-11
From: Russell H. Walters, P.E.

September 26, 2011

To whom this may concern,

I understand you are considering regulating REITS the same as investment companies.

I believe this is a BAD idea and you are negatively affecting the one area of investment where we (normal, US Citizens) can invest to get some yield. The treasury and the Fed have ruined the bond market with all of their purchases/issuances. You guys are now taking a shot at the only piece of my (and many others) portfolios that are working.

Please un-consider increasing regulation in this area. The government in general is regulating our economy to death and this isn't helping. Investors know that these REITs are leveraged and risky. But we need to be able to assess the risk based on the REIT's performance not on possible upcoming regulatory action.

I am just a regular guy voicing my opinion. I hope you listen. Please drop this crusade and spend more time looking for the next Madoff.


Russell H. Walters, P.E.