Subject: File No. S7-41-11
From: suzanne h shatto

December 16, 2011

consider shortselling, derivatives, hedging against a position, risky transactions, marketmaking, investment in hedge funds (which cost larger fees and usually invest in riskier assets, and are less liquid than transactions that can be traded in the stock market upon customer order. hedge fund customers can request $ once per quarter, so that if the customer sees trouble or wants $ and wants to get out of a position, they are only able to do that by giving notice for the next distribution. recently, the SEC brought an action against a hedge fund and has filed to stop a distribution 12/31/2011.)

banks need to go back to being banks, being of service to their customers. banks absolutely do not need to be shorting against our economy, against their customers. they fulfill a purpose in our economy, are FDIC insured.

banks should not place funds in less liquid investment vehicles, such as hedge funds. they could be prevented from getting distribution.

see http://www.bloomberg.com/news/2011-12-09/falcone-s-harbinger-to-halt-withdrawals-as-sec-says-it-may-sue-hedge-fund.html for what the SEC did with harbinger capital

should banks be able to short against the economy, against their customers?
if they short, they short against their own business interests to be a bank in this economy.

banks need to go back to the business of lending $ to business customers and people. they have strayed very far from the character of being a bank and this has damaged the economy dreadfully.