August 14, 2012
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-1090
Dear Chairman Schapiro:
I am writing to you to urge you not to take the actions you are considering regarding money market funds. These funds and the vital role they play in the stability of our financial system should not be tampered with; especially in an environment of extreme uncertainty and economic instability.
I have personally depended on the stability and liquidity of money market funds over the years - we all have, whether we have know it or not.
I am sure that if the bulk of people who do not follow these issues as closely knew what your proposed changes were, and how they would affect the infrastructure (shall we say the "plumbing") of our financial system, they would be flooding your email box as well.
But alas, they don't - that is why those familiar with the important role MMF's play will be contacting you. Quite literally, your changes makes NO SENSE whatsoever. To whose benefit do these changes accrue? I can think of many, but will not list them here.
Please - Leave a stable NAV.
Redemption restrictions are financial repression, period; worthy of third-world countries... I know of no other cash management vehicle that tells customers that they may not have full access to their investments when they want it or need it.
I do hope that the SEC will take my views into consideration.
Please look closely at why you are being asked to consider these changes - consider deeply the fallout that would ensue and abandon the effort to regulate MMFs out of existence. What useful purpose would this serve...?
Money market funds work just fine now and none of the alternatives available provide the same flexibility, yield and value to average Americans citizens, businesses and funding institutions alike.