New York attorney general Eliot Spitzer has said an investigation has uncovered evidence of illegal trading by mutual funds which leaves their shareholders out of pocket. Mr Spitzer said he had reached a $40m settlement with a hedge fund that would assist with an ongoing inquiry into the trades.
The research had suggested that mutual fund shareholders had lost billions of dollars a year from the trades, Mr Spitzer said ...
Mr Spitzer said investigations found that ordinary investors were losing out from illegal after-hours trades and the exploitation of market movements between mutual funds and hedge funds ...
"The full extent of this complicated fraud is not yet known," Mr Spitzer said.
"But one thing is clear: The mutual fund industry operates on a double standard.
"Certain companies and individuals have been given the opportunity to manipulate the system.
"They make illegal after-hours trades and improperly exploit market swings in ways that harm ordinary long-term investors."
So if you were foolish enough to invest in most of the stock markets in the late-'90s, you got screwed. If you were foolish enough to invest in bankrupt companies' pension funds, you got screwed. If you invested in mutual funds, it looks like you may have recieved a screwing. Where's the Invisible Hand when you need it?
They got a mule they call Sal, bulldozing up canal walls. They're gonna tap that icecap too, And when they do they're gonna make that green map blue. And the weather is finally getting warm ...
William Safire, who died yesterday, is probably best known for being a NYT columnist, but he was also a speechwriter in the Nixon White House. And I guess this could have been the most famous speech he wrote that no one ever heard... until now.