Letters

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28July, 2011

On the Nation’s Debt

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Letter to President Obama and Members of Congress: "We write to you today to urge you to act this week to reach an agreement that will ensure that our Nation continues to meet all of its financial obligations, and that will entail meaningful and concrete steps to put our Nation on a sound fiscal footing. The consequences of inaction - for our economy, the already struggling job market, the financial circumstances of American businesses and families, and for America's global economic leadership -would be very grave."

12July, 2011

On the Debt Limit

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Coalition Letter to the President and Congress: "We believe it is vitally important for the US government to make good on its financial obligations and to put its fiscal house in order. With our nation on a sound fiscal footing, we are confident that America's businesses and entrepreneurs will foster generations of high value, well paying jobs and contribute to a prosperous future. To this end, we believe now is the time for our political leaders to act.

First, it is critical that the US government not default in any way on its fiscal obligations. A great nation - like a great company - has to be relied upon to pay its debts when they become due. This is a Main Street not Wall Street issue. Treasury securities influence the cost of financing not just for companies but more importantly for mortgages, auto loans, credit cards and student debt. A default would risk both disarray in those markets and a host of unintended consequences. The debt ceiling trigger does offer a needed catalyst for serious negotiations on budget discipline but avoiding even a technical default is essential. This is a risk our country must not take."

11May, 2011

On Increasing the Debt Limit

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Business Community Letter to Congressional Leadership: "The undersigned associations, which represent a broad swath of the business community and whose members employ millions of Americans, respectfully urge you to raise the federal debt limit. We strongly agree that the failure to increase the statutory debt limit in a timely fashion could have a significant and long‐lasting negative impact on the U.S. economy.

Raising the statutory debt limit is critical to ensuring global investors' confidence in the creditworthiness of the United States. With economic growth slowly picking up we cannot afford to jeopardize that growth with the massive spike in borrowing costs that would result if we defaulted on our obligations. It is critically important that the United States stands fully behind its legal obligations."

3March, 2010

On the Important Role of the Federal Reserve

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Joint Trade Letter to the Senate Banking Committee: "We, the undersigned associations, write to you to express our support for the important role that the Federal Reserve System plays, and should continue to play, in financial supervision. We understand that the primary responsibility for the Federal Reserve is monetary policy. However, we do not believe the monetary policy role should be separated from financial supervision. We believe that these two responsibilities are essential duties of a central bank.

For example, successful conduct of monetary policy requires a deep program of research and analysis of financial and economic conditions. The Federal Reserve has developed these resources over the course of decades. Fortunately, these are the very resources and perspectives that are important to effective bank supervision, particularly for the supervision of large and complex financial institutions whose diversity of operations and significant impact on the economy demand a program of well-informed, consolidated supervision."

7December, 2009

Opposing Pre-Funding a New Systemic Risk Resolution Fund

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Joint Trade Letter: "As the Senate Banking Committee considers legislation to overhaul the nation’s financial regulatory structure, we respectfully urge you not include provisions to pre-fund a systemic risk resolution fund to pay for the failure of systemically significant financial firms. A new pre-funded systemic fund would threaten the economic recovery by diverting capital from job creation when previous efforts to augment capital are beginning to have an impact.

Further, there is no evidence that the existence of such a fund would deter the creation of new asset bubbles or other market distortions.

1December, 2009

On Regulatory Reform Priorities

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Letter to Members of Congress and U.S. Regulators: "Thank you for your continued leadership toward reforming and modernizing our nation’s framework of financial supervision.

To retain its global leadership position and return to robust economic growth and job creation, the United States needs a 21st century supervisory framework – one that ensures institutional safety and soundness; promotes systemic stability; protects the interests of consumers, savers, and investors; and promotes the innovative capacity and competitiveness of the financial services industry."