TCC Hensarling HR 4216 Letter

We are writing in reference to a Securities and Exchange Commission (SEC) rule – specifically, Rule 2a-7— that is wiping out billions of dollars of low-cost liquidity in the capital markets used to finance capital investments, public infrastructure and economic development.  The rule in question prohibits “non-natural persons” from investing in prime and tax exempt money market funds, effective October 14, 2016.  As institutional investors are prevented from accessing these funds, the cost of short-term debt issued by the State of Texas on behalf of hospitals, port authorities, municipalities and universities, including the University of Texas, Texas A&M, and Texas Tech University systems, has significantly increased.

TCC Hensarling HR 4216 Letter