October 2, 2009
The undersigned companies and trade associations—representing all segments of American industry and
serving virtually all U.S. consumers—support efforts by Congress to improve transparency, accountability and stability in the nation’s financial markets. As you develop a regulatory framework, we strongly urge policymakers to preserve the ability of companies to manage their individual risk exposures by ensuring access to reasonably priced and customized over-the-counter (OTC) derivative products.
Business end-users rely on OTC derivatives to manage risks including fluctuating currency exchange, interest rates, and commodity prices. By insulating companies from risk, customized OTC derivatives provide businesses with access to lower cost capital—enabling them to grow, make new investments and retain and
create new jobs.
In contrast, some reform proposals would place an extraordinary burden on end-users of derivatives in every sector of the economy—including manufacturers, energy companies, utilities, healthcare companies and commercial real estate owners and developers. Specifically, proposals that would require all OTC derivatives used by business end-users to be centrally cleared, executed on exchanges or cash collateralized or subject end-users to capital charges, would inhibit companies from using these important risk management tools in the course of everyday business operations. These proposals, which would increase business risk and raise costs, are at cross purposes with the goals of lowering systemic risk and promoting economic recovery.
In order to promote U.S. competitiveness and economic growth, policymakers must ensure that any financial services reform effort allows U.S. business to manage the risks inherent to their businesses. In today’s
challenging economy, access to customized derivatives helps businesses maintain operations, invest in new technologies, build new plants and retain and expand workforces.
Thank you for your thoughtful consideration of our request. We look forward to working with you to promote stability and transparency as part of the ongoing economic recovery.
Acadia Realty Trust
Air Products and Chemicals, Inc.
Allegheny Technologies Incorporated
Alpha Natural Resources
AMB Property Corporation
AMC Entertainment Inc.
American Chemistry Council
American Electric Power
American Forest & Paper Association American Gas Association
American Residential Communities LLC Anadarko Petroleum Corporation API - American Petroleum Institute Apple Inc.
Associated Estates Realty Corporation Association for Financial Professionals Bayer Corporation
Boston Scientific Corporation BP America
Brookdale Senior Living Inc. Bunge
Chesapeake Energy Corporation CNL Financial Group
Coca-Cola Bottling Company United, Inc. Cohen Brothers Realty Corporation Commercial Developments International, Inc.
Commodity Markets Council
Community Health Systems
Cooper Tire & Rubber Company Corporate Properties of the Americas, LLC Covidien
Deere & Company
Digital Realty Trust
Donaldson Company, Inc.
Duke Energy Corporation
Eastman Chemical Company
Edens & Avant
Edison Electric Institute
El Paso Corporation
Electric Power Supply Association (EPSA) Eli Lilly and Company
Enbridge Energy Partners and Subsidiaries EnCana Oil & Gas (USA) Inc.
Energy Future Holdings
Financial Executives International First Energy
Ford Motor Company
Forest City Enterprises, Inc. FPL Group
GDF SUEZ Energy North America General Electric Company
GID Investment Advisers LLC
Grove Property Fund LLC
Health Care REIT, Inc.
Hersha Hospitality Trust
Host Hotels & Resorts, Inc.
Independent Petroleum Association of America
Industrial Energy Consumers of America Information Technology Industry Council International Housewares Association Invenergy LLC
Johnson & Johnson
KBS Capital Advisors
KBS Real Estate Investment Trust KBS Real Estate Investment Trust II Kinder Morgan
Lefrak Organization Inc
Legacy Reserves LP
MarkWest Energy Partners, L.P. MeadWestvaco
Mid-America Apartment Communities, Inc.
MidAmerican Energy Holdings Company MillerCoors
Mississippi Manufacturers Association
National Association of Manufacturers
National Association of Real Estate Investment Trusts
Natural Gas Supply Association National Grid
National Gypsum Company
Procter & Gamble
Regency Centers Corporation Retail Energy Supply Association Ryder System, Inc.
Shell Oil Company
Simon Property Group, Inc. Simons Petroleum, Inc.
Stellar Industries, Inc. Strategic Hotels & Resorts, Inc. Superior Graphite Co.
Superior Woodcraft, Inc. Tenaska Marketing Ventures Tenaska Power Services
The Boeing Company
The Commonwealth Group, LLC The Durst Organization
The JBG Companies
The John Buck Company
The Pinnacle Companies
The Process Gas Consumers Group The Real Estate Roundtable The Williams Companies
Thomas Properties Group, Inc. TRW Automotive
United Launch Alliance
U.S. Chamber of Commerce Vanguard Natural Resources, LLC Vermeer Corporation
Volvo Group North America Washington Gas
Weather Risk Management Association
Weingarten Realty Investors Weyerhaeuser Company
Yocum Oil Company