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The Mutual Fund Scandal: Is There No Longer Any Shelter From The Storm? |
September 18, 2009
Previously published by The Advocate for Institutional Investors, First Quarter 2004 on January 2004
Since the genesis of the mutual fund industry in the 1920s, mutual funds were thought of as a relatively safe investment vehicle for America's small investors. Mutual funds were sold as a limited risk investment which were, in the words of the great poet Bob Dylan, "always safe" and, thus, represented to the vast number of hardworking, middle-class Americans "shelter from the storm" that surrounded much of Wall Street's shady practices. However, on September 3, 2003, this perception was shattered by the revelation that certain of the country's most venerable mutual fund companies were engaged in unlawful conduct. On the heels of such major scandals as Enron and WorldCom, the public sadly learned that the $7 trillion mutual fund industry was rife with illegality and impropriety.
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The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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