Subject: File No. S7-12-11
From: Rosemary Falkner

May 19, 2011

I’m writing because although my family and I were not affected by the economic collapse of 2008, we see the tremendously unfair outcome-those who caused the collapse walked away with a large bankroll or continue to receive enormous compensation while others suffer.

Wall Street greed and outrageous pay practices were a major cause of the collapse. One way to change the incentives so they don’t collapse our economy again would be to delay the bonuses for several years, at least five or seven. That way, we’ll know if the loans they made in year one remain good. In the bad days, bankers paid themselves on the volume of loans (mortgages) they generated, not on their quality. This system was reinforced by the poor performance of the rating agencies.

Thank you for considering my comment,

Rosemary Falkner