Contrary to what
InvestmentNews suggests in the editorial “Time to brace for new money market rules” (Oct. 7), the radical changes to money market funds being promoted by SEC Chairman Mary Schapiro and Treasury Secretary Timothy Geithner are far from a done deal.
Despite attacks from Washington regulators throughout their 40-year history, money funds continue to be incredibly popular and thriving, even in this near-zero-rate interest environment, because of their simplicity, transparency and effectiveness.
Money funds are integral to the U.S. economy. They are the preferred cash management vehicle for businesses, public-sector agencies, nonprofit organizations and colleges/universities, as well as 56 million investors who get access to a market rate rather than a bank-set rate.
In turn, the funds provide short-term financing for companies, banks and state/local government.
That is why the Securities and Exchange Commission has received thousands of letters detailing the importance of money funds to investors and various sectors of the economy, as well as explaining the significant negative impact that proposals such as a floating net asset value would engender. It is also why a majority of SEC commissioners have questioned not only Ms. Schapiro's proposals but the very assumptions upon which they rely.
Instead of prematurely alluding to the demise of money market funds,
InvestmentNews should echo what it said in another editorial this year, “SEC must go slow on money fund reform” (Feb. 12) and urge financial advisers to examine the impact of the proposed regulations on their clients, and let their voices be heard.
J. Christopher Donahue
President and CEO
Federated Investors Inc.
Pittsburgh
Look at estate strategy
I was very disappointed in the article “Romney's "I dig it'
trust sealed his 14% tax rate” (Investment News.com, Sept. 30)
Although I am not advocating either candidate in this comment, I think the article should have been balanced by commentary on how President Barack Obama is handling the estate ramifications of the Nobel Peace Prize and how exactly the Kennedy compound has paid estate taxes on each death. Then we would have fair reporting, which is what good journalism is about.
Cynthia Hardman
Registered representative
Independence Capital Co. Inc.
Parma, Ohio
