Money Management Executive Latest News

J.P. Morgan Chase and Lehman Brothers Holdings have been charged in a class-action lawsuit for helping hedge fund Canary Capital Partners engage in trading violations that harmed long-term shareholders. Until the lawsuit, both J.P. Morgan and Lehman had managed to stay above the far-reaching mutual fund scandal that has tainted more than a dozen financial service firms with accusations of improper trading activities. The lawsuit was filed in federal court in Baltimore.

SAN ANTONIO -- The Investment Company Institute held its annual Tax & Accounting conference in 2003, just nine days after the scandal broke last year amid a cloud of controversy and confusion and long before the full scope of Fundgate would be realized by the industry.

Necessity is the mother of invention, the old adage insists, and with improprieties abounding in the mutual fund industry, more and more firms are finding they need to forge new identities.

After 27 years, the Calamos family decided to share the fruits of their labor by taking the firm public. Money manager Calamos Asset Management has set the terms of its initial public offering at 18 million Class A shares with an estimated price range of $15.50 to $17.50 a share.

The Securities and Exchange Commission has charged RS Investment Management, CEO Randall Hecht and Steven Cohen, former chief financial officer, with allowing certain mutual fund investors to market time the firm's funds. These investors profited from the trades, potentially at the expense of other shareholders, and RSIM was able to earn "substantial advisory fees."

TCW Galileo Funds Names Haden Independent Chair

SAN ANTONIO -- As new governance requirements officially took effect last week, panelists here at the Investment Company Institute's Tax & Accounting Conference said the proper valuation of securities and the monitoring of such processes will be one key to keeping firms out of regulatory hot water.

CGM Funds of Boston, managed by Capital Growth Management and its two well-known senior executives and company co-founders Ken Heebner and Bob Kemp, are trying to make certain that all fund board trustees are created equal--no matter what additional board roles they accept.

British investment services provider Old Mutual opened a mutual fund subsidiary this week in Denver’s beleaguered financial district, Rocky Mountain News reports.

State Street Research & Management shuttered four institutional mutual funds that failed to attract enough assets to become profitable, CBS MarketWatch reports.