Dean Calls for Measure To Restore Trust in Mutual Funds

[Rose Siding]

Criticizes special interest influence on SEC and Congress

NASHUA, NH -- Democratic presidential candidate Governor Howard Dean, M.D., today criticized the influence of the powerful mutual fund lobby and urged far-reaching reforms to protect the savings millions of Americans have in mutual funds.

Over 95 million Americans own a stake in mutual funds, either directly or through college savings and retirement accounts. Mutual funds help Americans save to send their children to college, pay for the care of aging loved ones, and provide for their own retirement.

"Unfortunately, as we have been learning in almost daily revelations, some of the people who were entrusted with protecting the security of Americans' savings were exploiting their power for personal gain while the authorities were asleep at the wheel. We need to restore balance to our system so that unchecked corporate power is not allowed to run roughshod over ordinary people," Governor Dean said.

"President Bush and Harvey Pitt, his hand-picked SEC Chairman, allowed the mutual fund lobby to literally write its own rules. This culture of ‘anything goes’ must end so that our economy can work for all of our citizens."

Governor Dean proposed changing the rules surrounding the governance of mutual funds so that the funds are run in the best interests of the investor, not the personal interests of executives. He also believes that increased transparency is in the best interest of investors. Specifically, Governor Dean called for the following reforms:

* Amend the Investment Company Act of 1940 to state that boards have a fiduciary duty to act in the interest of investors.

* Require mutual funds to report all managerial compensation in a transparent way.

* Mandate a simple, uniform system of reporting of all fees charged by mutual funds.

* Require mutual fund boards to have a majority of independent directors, including the chairman.

http://www.deanforamerica.com/site/News2?page=NewsArticle&id=11385&security=1&news_iv_ctrl=1301

[stickdog]

1. Nice. We need to stop the rich hedge funders from robbing middle class

mutual funders blind.

[aquart]

2. And until these changes are in place

No recovery is worth spit.

[bain_sidhe]

3. Excellent

An issue than needs more attention than it's getting. Hopefully, making it part of a campaign will help with erode the public's unquestioning acceptance of this bu**sh** "recovery" propaganda.

[Robbien]

4. Currently all of my retirement money is in mutuals

And it is a long time-consuming on-going process trying to get them out of the mutuals clutches. All the recent news scares me that that money might not be there when it is needed the most. This is a big issue and should be stressed hard.