HomeMy WebLinkAbout08-08-18 Public Comment - R. Jardine (Coalition for Investor Choice) - Supporting S. 1117From:Renee Jardine
To:Agenda
Subject:Please consider supporting S. 1117
Date:Wednesday, August 08, 2018 1:43:10 PM
Attachments:MT Chamber of Commerce.pdf
Tester_Bozeman.docx
Hello,
I am reaching out on behalf of the Coalition for Investor Choice which is comprised of state and local governments,
businesses, universities, hospitals and others throughout the country, including Montana, who are supportive of S. 1117, the
Consumer Financial Choice and Capital Markets Protection Act of 2017. There was a hearing held for the bill in the Senate
Banking Committee in June and is currently waiting for further consideration from the committee.
About S. 1117
S. 1117 is a bipartisan bill being considered in Washington DC and will reverse unintended consequences of recent rule
changes made by the Security and Exchange Commission (SEC) to Money Market Funds. The regulations have made it more
expensive to invest in schools, hospitals, affordable housing and other public infrastructure projects across Montana and our
Nation. You can get more information and watch informative videos by visiting http://protectinvestorchoice.com/
I have attached the letter of support from Montana Chamber of Commerce President & CEO Webb Scott Brown.
Linked here is a list of supporters by state and letters they have sent: http://protectinvestorchoice.com/participants/.
We are inviting Montana leaders and organizations to encourage Senator Tester to support this bi-partisan sponsored bill.
We would be thrilled if you would sign a letter on behalf of the city of Bozman and send to Senator Tester. I have
attached a drafted letter for your consideration. Feel free to edit the letter as you would like.
It would be great if you could email me a copy of it as well. My email address is Renee@riverwoodstrategies.com.
Email letters to:
Senator Jon Tester:
Chief of Staff - aaron.murphy@tester.senate.gov
Financial Services Staffer - kellin.clark@tester.senate.gov
Let me know if you have any questions.
Best,
Renee Jardine
Communications Director
801.615.0711
DATE
The Honorable Jon Tester 311 Hart Senate Office Building
Washington, DC 20510-2604
Dear Senator Tester:
I am writing to request your support for S. 1117, the Consumer Financial Choice and Capital
Markets Protection Act 2017. This bipartisan legislation will help our region prosper
economically by restoring money market funds as an investment tool and a source of low-cost
variable rate financing.
Businesses and governments in Montana and across the country benefit from money market
funds as a tool to invest short-term operating cash, and as purchasers of debt used to finance
infrastructure, economic development and business expansion. Unfortunately, new rules to
money market funds that were adopted by the Securities and Exchange Commission (SEC) in
July 2014, and which went into effect on October 14, 2016, have had far reaching consequences on the ability of business and municipal entities to raise short-term capital and manage cash.
Particularly harmful is a new SEC requirement that prime and tax-exempt funds available to
businesses and local governments may no longer sell and redeem shares using a stable net asset
value (NAV), or $1 per share. Instead, such funds must transact using a fluctuating, or “floating NAV. Implementation of the rule has caused over $1.15 trillion to exit prime and tax-exempt
money market funds, leaving the private sector and moving into Treasury and Government
funds, which are not saddled with the floating NAV requirement.
As investments flowed out of non-government funds, Montana’s businesses and municipalities lost a key source of funding, much of which was used to finance infrastructure projects,
including road repairs, school facilities and hospitals, some of which may have to be delayed or
cancelled. In addition, institutions are no longer able to benefit from market rates of return on
their short-term cash investments provided by prime money market funds. This drives up the
cost of doing business, and results in less business investment and job creation.
S. 1117 would preserve the stable net asset value (NAV) for all money market fund investors. I
urge you to support this legislation so we can restore an investment and short-term financing
option that has been indispensable to economic growth and public infrastructure investment in
Montana and throughout the U.S.
Sincerely,