The Chamber

Why now? Why more regulation? Why these proposals?

Proposals to fundamentally change money market mutual funds have attracted opposition from a broad and diverse coalition of businesses, states, municipalities, and non-profits. Money market mutual funds work for investors, businesses, and cities.  Why risk changing them now?

So why are regulators so keen to fundamentally alter a product the business community relies on? Before they propose arbitrary changes to this critical economic engine, the U.S. Chamber of Commerce and other organizations have called on regulators answer a few simple questions.

Click here to see who has spoken out. 

Three Questions for Financial Regulators…

Why more regulation? Substantial changes were made to financial regulations in 2010.  Are these changes working? And how have funds performed in the wake of the US debt ceiling negotiations and downgrade, and the European sovereign debt crisis? If the 2010 amendments haven’t been studied, how will regulators know what the vulnerabilities are?

Why now?  Fundamental changes in money market funds now—in a time of economic recovery— could itself cause turmoil. Are financial regulators willing to risk this?

Why these proposals?  Proposed “solutions,” such as those from the SEC including floating net asset value (NAV) and capital requirement plus redemption restrictions, would fundamentally change the quality and characteristics of money market funds, causing corporate investors to walk away. If regulators can prove that additional changes are needed, they should find solutions that preserve the versatility and usefulness of the product for businesses to avoid needlessly hampering our economic recovery. 

Click here to see who has spoken out.