Subject: Comments for File Number S7-12-11

May 21, 2011

Iím writing because my family and I were affected by the economic collapse of 2008, and we donít want it to happen again.

Wall Street greed and outrageous pay practices were a major cause of the collapse. One way to change the incentives so they donít collapse our economy again would be to delay the bonuses for three, five or more years. That way, weíll know if the loans they made in year one remain good. The focus should be on quality, not quantity.

Thank you for considering my comment. There needs to be greater clarity in gauging banks and investments firms, as well as their products.

Overall, I am disgusted by what I view as total lack of moral, ethical and rational business practices that reward the banker, but offer harm to the shareholder, investor, loan holders and depositors.

Since this recent economic collapse, my own investments lost 2/3 of their value, my home is 1/2 its 2006 market value (before home prices went through the roof), and 1/4 of the houses on my street have gone into foreclosure either because of bad mortgagees, bad mortgages, or jobs that are drying up like crazy, some because banks stopped lending to any and everybody. I now live in a city where half the vacant homes have had their copper pipes, water heaters and meters stolen for scrap metal, but, because of a reduced tax base due to foreclosures and job losses, a smaller police force to respond to this growing crime. I did nothing wrong and am suffering. But, hey. . the bankers can reward themselves for a job well done. They had to work hard to NOT see the real estate bubble, the bad mortgages, the bad mortgage borrowers, the lack of mortgage paperwork, the bizarre investment vehicles, the risk of mixing banking with investing, and then to cry for a bail out and nag politicians to thwart any ideas of new regulations!!

They did everything wrong, and some how no one saw it coming?!

Diane Hallum