Subject: File No. S7-12-11
From: Dr. James Kelley

May 31, 2011

Elizabeth Murphy
100 F Street, NE
Washington, DC 20549

Dear Murphy,

In is absolutely clear that this was engineered fraud on a massive scale and it has affected everyone in this country and the world.

The selling of ARM loans to millions of people at seductively low interest rates followed by the action of the Federal Reserve System to jack up interest rates triggered the collapse of the housing market.
All these participants were knowledgeable about the consequences and benefited from the damage that was done save the hinder most.

The perpetrators made money off the sale of the loans, shorting the market Collecting the mortgage insurance, collecting trust insurance and foreclosing on millions of homes.

There has never been a greater fraud in the history of this country.

Now the banks are foreclosing on millions of properties using fraudulent foreclosure paper.

This problem can be corrected by a series of actions.

Please do your best.

Referencing Docket No.'s:

OTS:   RIN 155-AC49
OCC:  RIN 1557-AD39
Fed:    RIN 7100-AD69
SEC:   RIN 3235-AL06
FHFA: RIN 2590-AA42
FDIC:  RIN 3064-AD56


Dr. James Kelley