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More On Scandalous Mutual Funds The Wall Street Journal states: "This is an industry that lost its moral compass," says Don Phillips, managing director at researcher Morningstar Inc. "Sometimes it takes a near-death experience to change behavior." We are hardly a site that encourages additional regulation, but it is an essential. Read another statement from the Journal: "Perhaps the most fundamental issue for the industry to address, critics say, is that the current scandal was rooted in a willingness of at least some fund companies to put their own financial interests ahead of those of the fund shareholders that the companies are legally bound to serve. While investigators continue to probe the extent of the alleged wrongdoing, many observers say the trading scandal reflects a general drift by many in the industry that has included pushing investors to buy "hot" funds with little investment merit, charging fees that are out of proportion with expenses, and revealing limited information about their funds to investors." The state attorney generals and the SEC are arguing on jurisdictional issues, we believe there is more than enough enforcement work to go around mutual funds--a scandal ridden industry that affects millions of investors unable to retaliate.

 

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