Despite falling behind early to New York Attorney General Eliot Spitzer’s cffice, the Securities and Exchange Commission has gained its war footing against unethical mutual fund companies, a new General Accounting Office report says.

A history of not "being able to anticipate potential problems and identify the extent to which they exist," according to the GAO, is a problem the SEC has always faced thanks to limited resources. That causes the Commission, not because of fault but rather because of lack of funding, to be reactive rather than proactive, as it was in the mutual fund scandal.

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