I was directed to this website by a thread on a bulletin board discussing the SEC proposal for money market funds. The web site includes links to this site and this one as well. The second one is from Federated Investors, a big provider of money funds, especially to institution such as custodial banks and brokerage firms. Federated obviously has an interest in the proposal, as money finds represent a significant source of revenue.
The first is an effort by the Investment Company Institute. The only identification is the logo at in the footer of the site. Investment Company Institute (ICI) is the trade group for mutual fund management companies. It provides public relations, soft marketing and lobbying for the industry. As such, the website does a good job on behalf of the industry. All of the points made are valid.
Unfortunately, does not identify its sponsor very well. Even the contact links go to ICI's public relations firm. Kinda disappointing that ICI does not have the courage of its convictions to conspicuously identify itself with its positions.
All of the arguments being made in favor of retaining money funds in their current form are valid and convincing. The only problem is that Mary Shapiro is not charged with securing any of the good things identified with money funds. Her job is to safeguard individual investors from realizing a loss in an investment designed to avoid losses, and from illiquidity in what is intended to be most liquid of investment funds. That he Chairman of the Commission has put forth a proposal that can reasonable be expected to achieve these goals is attributed to by the endorsement of the Financial Stability Oversight Board. I do not believe that this fight is over.
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