May 6, 2011
I saw the notice on the hearing concerning money market mutual funds.I have written several times to the Chairman of the SEC concerning my views on money market mutual funds. I look at the panel that has been set up and I have one question, "Who represents the retail client on this panel?"
I do not see anybody on the panel who has had to deal with clients who are earning zero on their cash and have been for the better part of two years.
It seems to me that the committee should be looking at how companies can spend shareholder revenue to subsidize money market funds NAV at $1.00. Charles Schwab announced that last year the reported over $430 million in lost fee revenue to support the $1.00 NAV. They also reported that in the first quarter of this year they waved over $120 million in fees and paid expenses on their money market mutual funds to keep the NAV at $1.00. Who is representing the interest of the Charles Schwab shareholders rights? What panelmember will address this issue?
If you truly want to look at the problem from all sides you need somebody who can truly represent the retail client prospective.