Toothless Watchdog - SEC knew about dicey fund pricing - MSGOP

[dArKeR]

The Securities and Exchange Commission has known for nearly six years about the sloppy pricing of mutual fund shares that one study estimates is costing individual investors as much as $5 billion a year, but the agency has initiated only a handful of low-profile enforcement actions, a review of SEC statements and documents by MSNBC.com has found.

 FOLLOWING last week’s complaint against four fund companies by New York Attorney General Eliot Spitzer, the SEC announced that it would investigate mutual fund pricing practices which have been estimated to have cost tens of millions of long-term investors billions of dollars. Spitzer’s investigation found that at least four mutual fund companies — including Janus, Banc One, Strong and Bank of America’s NationsFunds — made secret deals with a hedge fund that allowed it to make rapid fire trades in fund shares at the expense of individual investors who hold the funds for the long haul.

http://msnbc.com/news/965075.asp?0cv=CA01

[jamesinca]

1. Maybe this will drop the stock market in the morning

It seems that the poor Bush administration can not catch a break. I really feel for the slimy bastards. On the other hand maybe this can be used as a stigma about being in good with big business. Once again the Bush administration can not catch a break. I really feel for the slimy bastards.

[aquart]

2. I'm shocked.

Not one thing done for the good of the people. Not one thing.

[dArKeR]

4. They rip us off. Even if the SEC does fine 1 or the millions, the Gov.

keeps the fine money. Am I misunderstanding the procedure? Why don't we get our stolen money back?

[w4rma]

3. If these corporations were smaller and less influential this would be the

end of them. Unfortunately small buisnesses and small investors go bankrupt and the money flows upward to the big buisnesses who are now getting caught and will most likely get a slap on the wrist and a relatively small fine compared to the amount of money made from these illegal insider trading schemes.

[The Backlash Cometh]

5. Forget reinforcing the Patriot Act

What we really need is to reinforce regulatory agencies like the SEC, EEOC, EPA, GAO...

[Palacsinta]

6. You accept a certain amount of risk

when you invest in the stock market. But none of this garbage should be part of your risk!! I feel so stupid trusting as much as I did in the past.

[msmcghee]

8. Use your common sense.

* You have hundreds of millions of dollars changing hands every hour in the NYSE and NASDAQ.

* You have thousands of secretaries and managers in the major corps who know about major events affecting the corporations before it is known by the general public.

* You have securities sales people and brokers who stand to make millions simply by cooperating with those in the know - and helping them to profit personally by that information in ways that can't be traced.

* As long as they keep their theft from the small investor under control and are not really blatant about it - no-one will ever question them.

Once in a while they cross that line - and someone will have to pay a fine or maybe even do some jail time. But that's probably less than 1/10 of a percent of what is really going down. As soon as someone's wrist gets slapped the general public immediately goes back to believeing that it is a fair process - i.e. they forget about the theft.

Anyone who thinks that the small investor has an even chance - or that over the long run millions of small investors will not be providing the cash flow and profit for those in control of the process - is deluding themselves.

[Nottingham]

7. Spitzer has less staff and can Prosecute these Thieves

meanwhile the SEC with all their 1000's of employees DO NOTHING!

:bounce: