Portfolio

The Securities and Exchange Commission has filed a settlement enforcement action against Bank of America’s Banc of America Investment Services Inc. for failure to disclose it favored two mutual funds.

We are proud to announce this year's Money Management Executive's 6th Annual Fund Operations Awards program. The awards, for Leadership, Innovation, New Media and Innovations/Efficiencies, will be presented in person in September, in Boston. Deadline for entries is July 18, 2008. Detailed entry forms will be available on the newsweekly's home page. We look forward to hearing from entrants as well as those interested in serving on the judging panel. For more information: elizabeth.barney@sourcemedia.com. -- Thank you, Lee Barney, Editor.

While flows to money market mutual funds increased at an alarming rate in the first quarter of the year (see MME “Money Funds Seeing Huge Inflows, Opportunities,” this week’s issue), assets fell by $34.53 billion in the week ended Tuesday, according to data from iMoneyNet’s Money Fund Report.

The Financial Industry Regulatory Authority’s National Adjudicatory Council yesterday upheld FINRA’s 2006 decision to fine American Funds Distributors $5 million for directing traders—worth $98 million in brokerage commissions—between 2001-2003 to 46 broker/dealers that sold its family of 29 mutual funds.

The Hartford suffered a serious 83% drop in net income due, the firm announced yesterday, to poor investments.

While Warren Buffet continues to buy up and broker M&A deals, making financial news headlines left and right, a fund that mimics his preternatural talent for picking winning stocks, bonds and private equity opportunities—and run by Buffet’s former stockbroker Bill Ruane—has reopened.

New Fund

The Charles Schwab Foundation will sponsor awards for the National Financial Literacy Challenge, a 35-question test of personal finance for high school students in the U.S.

WASHINGTON - The Office of the Comptroller of the Currency's $144 million enforcement order against Wachovia Corp. is likely to force banks to step up oversight of telemarketing customers.

Rick Lazio, head of government relations at JPMorgan Chase since 2004 and one-time candidate for New York Senator, is taking on a new role. He is now a managing director in the company’s asset management operations.