Capital Markets Subcommittee Chairman Richard H. Baker (R-LA) will hold a meeting Tuesday to discuss whether mutual fund trading tactics that have been brought to the forefront as a result of New York State Attorney General Eliot Spitzer, have disadvantaged long-term investors.
"Since committee passage of [the Mutual Fund Integrity and Fee Transparency Act of 2003], weve seen a number of extremely disturbing revelations concerning the mistreatment of mutual fund investors," Baker said in a statement. "Subcommittee members have a serious responsibility to get the facts about these particular incidents of alleged late trading and market timing, but we have an equal obligation to consider how these revelations beg the question of whether our proposed legislative reforms for mutual funds go far enough."
Securities and Exchange Commission Enforcement Director Stephen M. Cutler, Massachusetts Secretary of the Commonwealth William Galvin and Spitzer will all be invited, among others.
Nicknamed the Baker Bill, the reform legislation has been approved by committee, but is pending consideration by the full House.