September 12, 2013
Elizabeth M. Murphy
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-1090
Dear Elizabeth Murphy:
This legislation impact millions of voting Americans as you should well know. I am a financial advisor. I rely on money market funds for my self, my individual clients as well as some small business clients.
One of the main ideas the HOuse and Senate have is to help the SEC regulate the investment industry. I am not against that at all. I am against -including S7-03-13- passing legislation that undermines the confidence of investors or duplicates a rule already in place that is being ignored or not enforced. This type of legislation ultimately has a far greater negative impact on the financial markets than "doing something."
Here, doing nothing is the answer. This will be an accounting nightmare but increasing accounting costs for money market fund companies which WILL be passed along to consumers or to small business owners like me who will then need to increase fees at a time when millions of Americans are turning 65 every day. During a time of great uncertainty, you could vote to increase costs on common, everyday Americans who have experienced few if any problems related to the $1 NAV pricing that has been in place long before I became an financial advisor in 1996.
I have worked in a bank investment environment as well as my current, independent business owner status. I see no value in changing to a floating NAV nor in the other proposed measure that quite frankly, I don't fully understand. If I don't understand the benefit, but I do understand the drawbacks then that tells me you have no business voting to pass this legislation. No offense, but I am confident I understand its practical misapplications better than you and your staff do.
It is time for the Federal government to stop interfering beyond its normal scope of oversight. Let these risk-taking banks or investment houses fail. By continuing to save them from their own stupidity in crisis after crisis of their own making, you are not allowing the market place to remove the losers in an orderly fashion, NOR are you allowing the safer, more conservative companies to win teh day by doing what is right for their clients. You end up forcing these companies into ethical dilemmas of putting profits in front of people. Then you have another crisis and the cycle repeats itself. You are also lulling everyday American investors into thinking you will bail them out. NEWSFLASH:
Investing is risky. People who will invest will lose money. Even Warren Buffett loses money. Nobody who invests will EVER be 100% SAFE in a money market or anything else. So stop trying to manipulate risk as if you can make it go away. Yo are making it worse.
Please contact me if you have further questions. As my elected, Congressional representative, I am telling you I do not want you to vote for either proposal.