Fund Scandal: A 60's Flashback
Article Abstract:
The current mutual fund scandal is a reminder of the financial chaos that penetrated the industry in the 1960s. Financier and investor Bernie Cornfeld manipulated mutual funds to his advantage by creating an offshore fund that invested to his advantage only in other mutual funds. Known as a "fund-of-funds" concept, it led to SEC and congressional action to prevent undue influence that could hurt mutual fund stockholders. New regulations did not provide the necessary protections that were required to prevent the market timing abuses that hurt small investors 40 years after Cornfeld exploited the securities industry.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 2004
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S.E.C. Plan Would Force Fund Boards To Change
Article Abstract:
The SEC has proposed rules that would require mutual fund companies to select board chairmen who are outside the mutual fund industry and independent of firms managing funds. This will impact all mutual fund companies, including those that have not violated any stock trading regulations or been investigated by SEC, federal and state authorities.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 2004
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