Letter Supporting Amendments SA 3914, 3915, and 3916, Expected to be Offered by Sen. Chambliss, to S. 3217, the "Restoring American Financial Stability Act of 2010"
May 13, 2010
TO THE MEMBERS OF THE UNITED STATES SENATE:
The U.S. Chamber of Commerce, the world's largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, strongly supports amendments SA 3914, 3915, and 3916, expected to be offered by Sen. Chambliss, to S. 3217, the "Restoring Financial Stability Act," because they would provide important and targeted improvements to Title VII, the "Wall Street Transparency and Accountability Act."
These amendments would provide needed clarification of key terms that determine whether end-users would in fact qualify for an exemption from mandatory clearing and bilateral margining. In the absence of a strong, clear end-user exemption, the Chamber believes many businesses would be forced to divert precious working capital away from productive use to margin accounts, move their hedging practices overseas, or forego hedging altogether – leaving them exposed to the volatility and price uncertainty that OTC derivatives have so effectively mitigated.
These amendments would provide additional certainty that companies across the country will be able to continue to responsibly and affordably manage the risks associated with their businesses – from manufacturers, to health care providers, to energy producers, to technology companies. Responsible risk management puts the business community in a stronger position to grow and create the jobs needed to further economic recovery.
The Chamber urges you to support Chambliss amendments SA 3914, 3915, and 3916. The Chamber may consider votes on, or in relation to, these amendments in our annual How They Voted scorecard.
R. Bruce Josten