In a letter to SEC Chairman William Donaldson, Rep. Michael Oxley (R-Ohio) reiterated his call for independent chairman of the boards at fund companies by noting that 85% of the chairman at companies embroiled in the scandal worked at the investment advisory firm. Of the 19 companies implicated in the scandal so far, 16 had such chairmen at the time the trading abuses occurred, proving, Oxley said, they are not able to serve in a disinterested way. Oxley characterized these findings as "startling."
Serving the management company and shareholders are "two jobs [that] simply can't be performed effectively by the same person," Oxley said. "The dual role creates too many opportunities for self-dealing for both personal and business gain."