MutualFundWire.com: Fidelity, Vanguard CEOs Have Something to Say in the WSJ

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Monday, May 16, 2011

Fidelity, Vanguard CEOs Have Something to Say in the WSJ

Edward C. Johnson III
Fidelity Investments
Chairman, CEO

Today's edition of the Wall Street Journal features a rare treat for fundsters: words from the mouths of the CEOs of the two largest mutual fund companies, and in this case they're speaking out together! Fidelity's [see profile] Ned Johnson and Vanguard's [see profile]] Bill McNabb penned an op-ed defending the money market mutual fund industry's track record and arguing against further new money fund regulations (including proposals like floating NAVs and banking-esque capital requirements).

F. William McNabb III
Vanguard
Chairman, CEO

"For 40 years, money market mutual funds have worked exceedingly well, providing substantial benefits to investors. Crucially, they've done so without receiving a dime of taxpayer funds," the duo wrote. "We shouldn't adopt rules that will jeopardize the viability of funds for investors and issuers and put undue strain on an already weakened banking system."

Johnson and McNabb's op-ed arrives less than a week after the SEC held a roundtable on the future of money funds, where outgoing Federal Deposit Insurance Corporation chair Sheila Bair and former Federal Reserve chair Paul Volcker both attacked money funds and the "myth" of stable NAVs [see The MFWire, 5/11/2011].

Printed from: MFWire.com/story.asp?s=36807

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