Subject: File No. S7-12-11
From: S.J. Weiss

May 30, 2011

I’m writing because almost everyone in the world was affected by the economic collapse of 2008, and it looks as if the same practices leading to the collapse have not as yet been mitigated in a meaningful way.

Wall Street shenanigans and outrageous pay practices were a major cause of the collapse. One way to change incentives  would be for regulators to use a "safety index" for incentive compensation, instead of a profit index.

Currently, most bankers receive stock options; if they can generate more profits, the stock price goes up, and their options become more valuable.

A bank’s bond price, which measures the overall ability of a bank to repay its own debt, should be used when considering an executive's compensation.   Credit default swaps should be made illegal since the banks are gambling with money not their own.

Thank you for considering my comment,

SJ Weiss

Silver Spring, MD