The SEC is not interested in reduced fees, but Spitzer is pushing for it, according to the Times. If it reduced its fees, MFS, the nations oldest mutual fund company, will be the second firm to do so in the ongoing scandal. (See
Meanwhile, the story coming out of Boston is the complete reverse. Although they are almost certain that engaged in late trading, securities regulators will probably not file charges against MFS, The Boston Globe reports.
- Citing interviews with attorneys and officials privy to the case, the paper reports that Bostons third-largest fund company obviously allowed large investors to market time
but evidence of the illegal, post-4 p.m. practice known as late trading is not strong enough to warrant a case.
MFS has already admitted to regulators that its shareholders have lost more than $100 million thanks to late trading in its funds by Security Brokerage, Inc. (see
The SEC says that the brokerage, and specifically its owner Daniel Calugar, altered documents to make it look like after hours trade took place before 4 p.m.
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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.
