Subject: File No. S7-17-11
From: Douglas Estadt

June 7, 2011

Do not make this change. It is another example of Congress closing the wrong barn door after the horse escaped.

Hedge funds did not get TARP funds.

Small hedge funds and small investors who would both be very negatively impacted by this onerous misguided rule were neither the perpetrators nor the victims in the Madoff and Stanford frauds nor in the CDO / mortgage frauds.

This will hurt both small funds and small investors, neither of whom caused or were involved in the long line of huge frauds that almost brought down the financial system.