mount(8) does not set MS_REC to recursive propagation mounts (e.g. --make-rslave). Fixed by upstream commit c7b0af96bcd7489424ff291bbbc9d14b2dda9435 (already in f17).
util-linux-2.20.1-2.3.fc16 has been submitted as an update for Fedora 16. https://admin.fedoraproject.org/updates/util-linux-2.20.1-2.3.fc16
Package util-linux-2.20.1-2.3.fc16: * should fix your issue, * was pushed to the Fedora 16 testing repository, * should be available at your local mirror within two days. Update it with: # su -c 'yum update --enablerepo=updates-testing util-linux-2.20.1-2.3.fc16' as soon as you are able to. Please go to the following url: https://admin.fedoraproject.org/updates/FEDORA-2012-6040/util-linux-2.20.1-2.3.fc16 then log in and leave karma (feedback).
util-linux-2.20.1-2.3.fc16 has been pushed to the Fedora 16 stable repository. If problems still persist, please make note of it in this bug report.