ICI Welcomes Treasury's Money Market Fund Guarantee
Washington, DC, September 29, 2008 - Investment Company Institute President and Chief Executive Officer Paul Schott Stevens issued the following statement:
"We welcome the Treasury Department's announcement this morning about the guarantee program for money market mutual funds, and commend Secretary Paulson for his strong leadership. This temporary program, implemented to address unprecedented market conditions, will help sustain investor confidence in money funds. These funds play a vital role in the financial markets. Throughout their history they have provided a safe haven for millions of investors. It is vitally important that they continue to do so through this tumultuous period. We pledge to work closely with Treasury and all our membership as the guarantee program is implemented in the days ahead.
"More action is needed, however, to restore confidence in the financial markets in which all mutual funds operate. Therefore, we urge members of the House and Senate to come together, regardless of party, quickly to revive the proposed legislation necessary to stabilize America's financial markets. As the market reaction to the House vote makes clear, these unprecedented strains have placed the health of our economy at serious risk, and it is in the interest of all Americans that national leaders act promptly to address these conditions. Swift passage of this legislation is of vital importance to the nation’s 90 million mutual fund shareholders, and we intend to continue to work closely with Congress toward its enactment."