Subject: Comments for File Number S7-12-11

May 19, 2011

I’m writing because my family and I were affected by the economic collapse of 2008, and we don’t want it to happen again. My sister went through a divorce. Her husband had the income and hired a connected Lawyer. They kept the proceedings up for 4 years. The Judge that was in service to her husband’s lawyer gave her $400 per month. She almost starved during the third year. Her Bank Is Chase. They played bate and switch passing her from one to the other while they were getting payment but refusing to adjust the tax rate after the house was assess at a much lower value. They were slow walking as long as she was paying but getting ready to foreclose. They broke the RICO laws many times.

The Housing bubble was caused by deregulation and speculation. The Tech bubble the same. Food prices skyrocketing are due to commodity speculation in an unregulated game. The Gas prices soaring are also a result of speculation with no limits or regulations.

I should not need to educate the regulators about the damaging affect of little to no regulation. That you are considering lowering regulations that started being lowered by Clinton, the continued with Bush, and now Obama must be silent or in favor of more deregulation tells me that these letters will fall on deaf ears. When you look in the mirror you should get drunk first. You will be numb to the monster staring back at you.

One way to change the incentives so Wall Street doesn’t collapse our economy again would be for regulators to set up a way for shareholders to grab back ill-gotten gains.

If it turns out that the profits in a given year were built on shoddy practices that become clear in the out-years, those bonus payments should be forfeited.

Thank you for considering my comment,

Richard Falzone