The fund scandal took a surprising turn Thursday when
Alliance will cut fees 20% and keep them frozen at that level for the next five years a $350 million value as part of its settlement with New York Attorney General Eliot Spitzer for engaging in abusive trading practices that ripped off long-term shareholders in its funds.
The firm also has agreed to hire an executive to oversee its fee structure and evaluate fees according to the level of fees charged to institutional investors. Also to be taken into consideration are the costs of providing services and Alliances overall profit margins.
The move comes on the heels of an investigation that revealed extensive market timing arrangements and that has cost two senior executives their jobs: John Carifa, ex-president and CEO, and Michael Laughlin, former director of mutual funds.
Meanwhile, The Wall Street Journal reports in this mornings paper that
For more on the historic Alliance settlement, read about it in the lead story of this Mondays edition
