Re “How Mr. Volcker Would Fix It,” Fair Game, Oct. 23), in which Gretchen Morgenson quoted Paul A. Volcker as criticizing money market mutual funds because they aren’t subject to bank-style regulation:

Mr. Volcker’s comments about money market funds read like another attempt to use the financial crisis — a crisis rooted in banks and banking regulation — to deprive the economy of the enormous benefits that these funds bring investors, businesses, and governments.

Money market funds are subject to tight risk-limiting regulations. They invest in diversified portfolios of short-term, highly liquid securities. They are required to ensure that the securities they own pose minimal credit risk. And they disclose every security they own to the public every month.

Contrary to your assertion that “few in Washington seem willing to discuss” reform of money market funds, our industry led the way on comprehensive regulations that tightened credit, maturity, liquidity and disclosure standards. We continue to work with the Securities and Exchange Commission and other regulators on measures to make money market funds more resilient without undermining their critical role in the economy. Paul Schott Stevens

Washington, Oct. 24

The writer is president and chief executive of the Investment Company Institute, the trade association for mutual funds, including money market funds.

Article source: http://feeds.nytimes.com/click.phdo?i=945c4601d15e8f4bb5b855ab2f2718a6