The U.S. Chamber of Commerce
is telling U.S. Treasury Secretary Tim Geithner
to back off of money market mutual fund reform.
Yesterday David Hirschmann
, president and CEO of the Chamber's Center for Capital Markets Competitiveness
, sent a letter
to Geithner, accusing him of making a "mad dash to a predetermined outcome" on the subject and worrying that Geithner's FSOC
(Financial Stability Oversight Council) could end up "endangering rather than promoting the safety and soundness of the financial markets."
"Such action would create uncertainty, weaken financial regulation, harm investors, and damage the capital formation process needed for businesses to grow and create jobs," the letter reads.
The Chamber called on Geithner to withdraw his request
to have the FSOC step in, allowing "the SEC to complete the long-delayed review and engage in a deliberative decision making process." The letter also had some choice words for the SEC approach backed and then abandoned
by SEC chairman Mary Schapiro
"The SEC failed to do any of the necessary work to study the impact of prior money market mutual fund reforms and identify any additional needed changes," the letter reads. "The process you [Geither] recommend in your letter to the FSOC members would only repeat or exacerbate the flawed approach the SEC has taken over the past year."
Last month the Chamber held a roundtable discussion
on the future of money funds.
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