{"database": "press", "table": "releases", "rows": [["http://gwenmoore.house.gov/index.cfm?sectionid=49&itemid=924", "Reps. Moore, Kind and Pocan Call on Governor Walker to Close His Health Insurance Coverage Gap", "2013-11-19", "2013", "2013-11", "Democrat", "House", "WI", "Gwen Moore", "M001160", "gwenmoore.house.gov", null, null, "legacy", "By Mark Schoeff Jr.\u00a0\r\n\r\n\tMay 6, 2012\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tDemocrats are joining Republicans in putting pressure on the Securities and Exchange Commission not to tighten regulations governing money market funds.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tIn a move similar to the bipartisan opposition to a pending Labor Department regulation that would expand fiduciary-duty requirements for retirement plans, Democrats have added their voices \u2014 and signatures \u2014 to what initially looked like familiar Republican and industry skepticism of a regulatory proposal.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tLast Tuesday, 18 Republicans and 15 Democrats \u2014 all former state and local officials \u2014 sent a letter to SEC Chairman Mary Schapiro warning her that changes in money market funds will make raising money for infrastructure projects more difficult.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tWhen she appeared at an April 25 hearing of the House Capital Markets Subcommittee, Ms. Schapiro heard a couple of Democrats \u2014 in addition to Republicans \u2014 warn her to tread carefully.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\t\u201cThe debate has widened out considerably,\u201d said David Smith, general counsel at the Mutual Fund Directors Forum. \u201cA lot more people have become engaged in the debate over the last few months than were engaged nine months or a year ago.\u201d\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tThe strengthening push-back from Capitol Hill, in addition to the relentless opposition from the financial industry and a likely split among the five SEC commissioners, has observers doubting whether the commission will be able to move forward.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tThe systemic risk that a run on money markets poses is a \u201creal danger for the future of the economy,\u201d said Arthur S. Levitt Jr., a former SEC chairman.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tBut the forces working against reform may overwhelm the SEC.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\t\u201cI'm very sorry that regulation is unlikely to see the light of day,\u201d Mr. Levitt said last Tuesday at the Bloomberg Washington Summit.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tThe SEC hasn't made a proposal yet. It is considering changes designed to prevent a situation like the one in 2008 when the net asset value of the Reserve Primary Fund fell to less than $1, prompting investors to stampede for the exits.\r\n\r\n\t\u00a0\r\n\r\n\tAmong the approaches under consideration are establishing a capital buffer for money funds, imposing redemption restrictions or letting the NAV float.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tThe SEC maintains that these are a natural follow-up to changes imposed in 2010 that required the vehicles, which typically invest in short-term debt, to use safer assets, shorten fund maturities and invest in instruments that provide 10% daily liquidity and 30% weekly liquidity.\u00a0\r\n\r\n\tThose steps don't \u201cprotect against a credit event that could cause a money market fund to break the buck,\u201d Ms. Schapiro told lawmakers.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tCritics argue that more changes would undermine the $2.7 trillion money market sector by threatening the stability and liquidity that makes the funds attractive to companies and investors.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tThe May 1 letter from the 33 bipartisan members of Congress asserted that the potential changes \u201cwould alter the fundamental structure of [money market funds] and would, in turn, lead investors to other, less regulated products.\u201d\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tThey argued that money market funds hold about 60% of the debt that local governments issue to finance construction of roads, bridges, hospitals and housing. They also said that the governments rely on the funds \u2014 and the certainty of the $1 NAV \u2014 for short-term cash management.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\t\u201cAny reduction in demand for money market funds would reduce demand for the securities issued by state and local governments, and purchased by [money market funds],\u201d the lawmakers wrote. \u201cAs a result, states and municipalities would be deprived of a critical funding source and would be faced with increasing debt issuance costs.\u201d\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tAt the April 25 House hearing, Rep. Gwen Moore, D-Wis., pressed Ms. Schapiro on whether money flowing out of the funds would end up destabilizing other areas of the financial system. For instance, they might substantially boost the amount of money in bank accounts.\u00a0\r\n\r\n\t\u201cWouldn't that increase some of the systemic risk that banks might have?\u201d Ms. Moore asked. \u201cI'm concerned about the rationale for these proposals.\u201d\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tHer Republican colleagues also have expressed their misgivings. In a letter to Ms. Schapiro, House Financial Services Committee Chairman Spencer Bachus, R-Ala., and Vice Chairman Jeb Hensarling, R-Texas, urged the SEC to do a thorough cost-benefit analysis before proceeding.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tThey also suggested that one of Ms. Schapiro's qualms \u2014 the perception that money market fund returns are guaranteed \u2014 could be addressed with something less than a new regulation.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\t\u201cIf investors do not understand that their investments in money market funds can result in losses, then the commission should use its existing authority to enhance disclosures rather than change the fundamental characteristics of money market funds,\u201d the lawmakers wrote.\u00a0\r\n\r\n\tOn April 26, Fidelity Investments sent to the SEC a compilation of customer surveys, the most recent one from April, showing that more than three-quarters of those polled understood that money market funds are not backed by the government.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tAn issue more likely to be on an investor's mind than regulations governing the funds is their puny returns. Advisers usually seed the funds only with money that a client is setting aside for an upcoming purchase.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\t\u201cPeople have them for their security and their safety,\u201d said Andrew Feldman, president of AJ Feldman Financial. \u201cThey're not looking to beat the market with a money market fund. That's probably the safest vehicle they have in their portfolio. You know it's not going to be worth less than a $1.\u201d\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tFor now, that NAV is stable.\u00a0\r\n\r\n\t\u00a0\r\n\r\n\tTo view this article online, please click here.", 1, "2026-03-30T12:14:52Z", "2026-03-30T12:14:52Z"]], "columns": ["url", "title", "date", "year", "month", "party", "chamber", "state", "member_name", "bioguide_id", "domain", "scraper", "source", "date_source", "text", "has_text", "collected_at", "updated_at"], "primary_keys": ["url"], "primary_key_values": ["http://gwenmoore.house.gov/index.cfm?sectionid=49&itemid=924"], "units": {}, "query_ms": 0.7126070559024811, "source": "dwillis/congress-press", "source_url": "https://github.com/dwillis/congress-press", "license": "MIT", "license_url": "https://github.com/dwillis/congress-press/blob/main/LICENSE"}