Subject: File No. S7-12-11
From: Karl Meller

June 7, 2011

Elizabeth Murphy
100 F Street, NE
Washington, DC 20549

Dear Murphy,

America paid a terrible economic price because of irresponsible risk-taking by Wall Street executives. Those executives took those risks because they knew that they could walk away with billions of dollars in bonuses and stock options and never pay for the long-term consequences of their actions. We need tough rules so that Wall Street pay packages don't encourage short-term risk taking.

Your rules should require at least a five year deferral period for executive bonuses at big banks, ban executive hedging of their pay packages, and require specific details from banks on precisely how they ensure that executives will share in the long-run risks created by their decisions. It should apply to the full range of important financial institutions, and draw in all the key executives at those companies.

Once this rule is passed, only you will know the details of its enforcement. But it's important for the public to know the progress you are making on this vital issue. You should report back to the public annually with a detailed report on progress in creating accountability for Wall Street pay.
Since when is it fair to reward those who created a crisis and keep continuing to punish its victims?  Every major financial policy seems  looking out for the welfare of large banks, financial inststitutions and insurance companies.
At one time in the United States banks and financial institutions aided industrial development; not determined the policies and product mix of industrial enterprises.  Often getting the designation of too big to fail.  If a corperation is too big to fail it is too big in the first place, since it has the ability to negatively impact the US economy.
Now more than ever, financial, bank and insurance regulation has to be transparent and readily understood by a reasonably informed person.

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


Mr. karl meller