U.S. Chamber Applauds SEC Commissioners for Stance on Money Market Regulation

‘Fundamentally Altering the Structure and Character of Money Market Mutual Funds Would Have Destroyed the Product,’ Chamber Says

WASHINGTON, D.C.—Alice Joe, executive director of the U.S. Chamber’s Center for Capital Markets Competitiveness, today issued the following statement on the announcement from Securities and Exchange Commission Chairman Mary Schapiro that the Commission will not vote to move forward with a proposal to impose additional regulations on money market mutual funds:
“We applaud Commissioners Aguilar, Gallagher and Paredes for their decision to preserve this essential cash management tool utilized by organizations and individuals across the country—ranging from retailers and manufacturers to mayors and state treasurers. The Chamber agrees that it is important to first examine the effectiveness of the current regulatory regime, including the changes implemented in 2010.  This approach is not only wise but good government.

“Fundamentally altering the structure and character of money market mutual funds would have destroyed the product and sharply reduced short-term financing for businesses and cities while derailing our economic recovery. Given these implications, we will continue to use every available tool to urge all regulators to answer one simple question:  With the major reforms the SEC already adopted in 2010 and the importance of money market funds to the American economy, why risk fundamentally changing money market mutual funds now?”

Since its inception in 2007, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.