So little in fact that New York Attorney General Eliot Spitzer has decided once again to act. He accused four prominent mutual fund firms - Bank of America Nations Funds, Banc One Funds, Janus Capital Group and Strong Capital Management - of illegal practices.
One of the practices is after-the-bell trading for special clients. Spitzer compares it to
"being permitted to bet on yesterday's horse race."
He claims that these and other outrageous practices may cost ordinary clients of these firms billions of dollars.
I am glad there is a Spitzer. But where is the federal government in all this? I guess it is too busy deregulating to notice. I wonder how Bush squares his religious convictions with the unethical practices he seems to condone. Perhaps he thinks it is enough merely to encourage faith-based organizations?
We need someone like Spitzer at the SEC to clean the investment business by REGULATING it.
