Subject: Comments for File Number S7-12-11

May 26, 2011

I am writing because my family was severely affected by the economic collapse of 2008. My youngest brother, his sons, my sister, all live in rural western Montana, an extremely economically depressed area, where income is generated by the spending of the wealthy who have built huge homes, driven up the value of land, sent property taxes soaring, and hire or fire, vacation or don’t vacation, spend lavishly or spend nothing at will. Everyone in my family (except myself) lost their jobs, and were unable to find positions for over a year. Even now, the economy in rural areas remains insecure and no one has any confidence that they will hold their jobs for more than today.

Wall Street greed and outrageous pay practices were a major cause of the economic collapse. I am in agreement with those who would restructure bonus practices on Wall Street. I agree with the suggestions that Wall Street bonuses should be delayed for five or even seven years after any loan. That way, we’ll know if the loans they made in year one were quality loans that remain strong. As it stands now, bankers pay themselves on the volume of loans (mortgages) they generate in one year, not on their long term value and quality.

Thank you for considering my comment. Catherine A Caron 323 E Augusta AV Spokane WA 99207

Catherine Caron

Spokane, WA