Merrill Lynch CEO Stan O’Neal expects the mutual fund scandal to extend well beyond trading practices and that funds must stand up and make fundamental changes to the way they do business, Reuters reports.

"I don’t know that there’s clarity yet in terms of what the scope ultimately will be, [but] I do believe that it will widen beyond just the trading practices [and have] far-reaching consequences," O’Neal said, speaking at a Merrill Lynch conference in New York.

"Trust" is the core issue in the balance, he added.

Meanwhile, an executive in the CEO’s office at Strong Capital Management was involved in Canary Capital Partners’ market-timing at the firm, The Wall Street Journal reports.

__

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

 

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.