Subject: Comments for File Number S7-12-11

May 27, 2011

I’m writing because friends were affected by the economic collapse of 2008, and we don’t 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 don’t collapse our economy again would be to delay the bonuses for three, five or more years. 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.

I also think that taxes should definitely increase for those making in excess of $1 million a year. And Social Security deductions should be on the entire salary of any individual. That would solve two problems at once.

Thank you for considering my comment,

Carol Gilbert Sacks

Copake, NY