The country is on edge from the recent warnings that terrorists are planning an attack before the November elections against financial services firms, and many experts say the financial service industry, including mutual fund companies, is ill prepared to prevent another attack.

"Starting 18 months ago, we've started to see signs of complacency creeping back in, even in places like lower Manhattan, where senior executives just don't think the threat is all that real anymore," said Dan Verton, a former Marine Corps intelligence officer and author of Black Ice, a book on the terrorism threat to financial institutions that has been used by the Department of Homeland Security. "They think that 9/11 was The Big One,' and that nothing can top that. If this latest warning hasn't erased that doubt, the only thing that probably will is if they succeed in an attack."

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