In light of New York Attorney General Eliot Spitzer’s probe into illegal mutual fund trading practices, Securities and Exchange Commission Chairman William Donaldson told the Senate Banking Committee on Tuesday the SEC will be looking very closely at how funds do business, Reuters reports.

"We are examining the mutual fund industry and its impact on investors, looking at everything from how fund companies do business to the fees they charge and the information they disclose to their customers," Donaldson said.

In addition, Donaldson said the SEC will most likely issue regulations for hedge funds "in the near future." Hedge fund Canary Capital Partners was named in Spitzer’s probe, and his office is now investigating 11 other hedge funds.

Furthermore, Donaldson expressed extreme displeasure that Spitzer had brought his charges against Canary and a number of mutual funds without first informing the SEC. "Unfortunately, there’s been a politicization, if you will, of enforcement in some areas of the country. This is very dangerous," Donaldson said.

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