October 4, 1991
TO: INVESTMENT ISSUES COMMITTEE NO. 17-91
RE: STUDY OF GOVERNMENT DEBT MARKET
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At its meeting held on October 3, 1991, the Investment
Issues Committee directed ICI staff to develop an industry
position regarding the market for Government issues. This
initiative was undertaken in connection with the on-going efforts
by several Federal agencies and Congressional committees to
reform this market in the wake of recent revelations of wrong-
doing. While some of these efforts are relatively narrowly
focused on improving the mechanics of the bidding process and
tightening the oversight, others are fairly broad in the range of
proposals.
We feel that the most promising way to influence the shape
of the reformed system is to inject the industry input into the
process at the earliest possible stage. At present the Treasury,
the Fed and the SEC are each conducting their own, apparently
loosely coordinated, studies. The Fed at least, and possibly the
other agencies as well, appear to be willing to receive and
consider our industry's suggestions and wishes.
I need your assistance in identifying appropriate
individuals from your companies suitable for serving on a task
force charged with developing an industry position on these
issues. A senior government debt portfolio manager or senior
trader would be best qualified to serve on such a task force.
Speed is of essence and I would greatly appreciate your calling
me ASAP (202/955-3560) or faxing back the attached response form.
If possible, I would like to call a meeting of the task force
late next week.
Thank you for your cooperation.
Jacob S. Dreyer
VP & Chief Economist
Attach.