Press Release Summary:
Dorothy Coleman, NAM VP of Tax and Economic Policy, stated that while NAM supports initiative to prevent excessive speculation and improve transparency in derivatives market, NAM believes it is important that policymakers preserve ability of responsible companies to access OTC derivatives. By making clear that end-users do not pose systemic risk, Murphy Amendment will exclude end-users from rules and requirements aimed primarily at those whose activities present risk to financial system.
Original Press Release:
NAM Supports Murphy Amendment on Derivatives
Amendment excludes end-users, such as manufacturers, from burdensome regulations
WASHINGTON, D.C. -- National Association of Manufacturers (NAM) Vice President of Tax and Economic Policy Dorothy Coleman issued the following statement on Rep. Scott Murphy's (D-NY) Amendment to H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009:
While the NAM supports initiatives to prevent excessive speculation and improve transparency and stability in the derivatives market, we believe it is important that policymakers also preserve the ability of responsible companies to access over-the-counter (OTC) derivatives products.
Manufacturers of all sizes use customized OTC derivatives to manage the cost of borrowing or other risks operating their businesses, including fluctuating currency exchange, interest rates and commodity prices. These important risk management tools help keep manufacturers operations going, invest in new technologies, build new plants and retain and expand workforces.
By making clear that end-users do not pose systemic risk, the Murphy Amendment will exclude end-users from burdensome rules and requirements aimed primarily at those whose activities present risk to the financial system.
The NAM believes that any derivatives reform effort should ensure companies' continued access to OTC derivatives by providing them with greater financial certainty and allowing them to allocate resources to core business activities. Therefore, we strongly encourage members of the House of Representatives to vote in favor of this amendment.
The National Association of Manufacturers is the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 10 additional offices across the country. Visit www.nam.org for more information about manufacturing and the economy.