Regulation

Supporters of pension funds argued before Congress that the plans play a critical role in ensuring retirement security and stimulating the economy.

Bruce R. Bent, founder and chairman of Reserve Management Corp., defended his company’s debit cards linked to 401(k) plans Thursday by saying that they encourage employees to sign up for the retirement accounts and that they reduce the dollar amount of loans taken out against them.

If elected, Democratic presidential candidate Barack Obama plans to increase the capital gains tax between five and 10 percentage points, from its current rate of 15%. The effect of Obama’s possible candidacy, along with his tax program, has already sent concern throughout the financial world, the Newark Star-Ledger reports. Some financial planners are advising investors to take advantage of the current lower rates and to drop some mutual funds and stocks.

The honeymoon between Chinese mutual fund investors and the surging market appears to be over. Investors are attributing large financial loses to what many are characterizing as “unprofessional” management, China Daily reports. Beginning in the third quarter last years, a surge in the Chinese market prompted 23 mutual funds to split their funds, which decreased the price, to try to expand scale quickly.

WASHINGTON — Given another day to consider the Treasury Department’s plan to backstop Fannie Mae and Freddie Mac, lawmakers were considerably less enthusiastic and seemed likely to make significant changes. Some Senate Banking Committee members were downright skeptical, arguing that the plan’s costs must be pinpointed.

Turning the collection of market data into a competitive business is a fatally flawed idea, said the Securities Industry and Financial Markets Association last week in response to a Securities and Exchange Commission proposal that seeks to do so.

How serious are liquidity problems with money market mutual funds?

The ongoing credit crisis saga has taken a tremendous toll on hedge funds due to their exposure to structured mortgage-backed assets-and for those heading or parsing trades overseas to avoid U.S. taxes: Beware.

Federal Reserve Chairman Ben Bernanke called for a stronger central bank last week, and outlined a proposal that would provide the Fed with more regulatory control over large New York-based financial companies that are not associated with commercial banks, like Merrill Lynch, Goldman Sachs, Morgan Stanley and Lehman Brothers.

According to a study released by the Investment Company Institute, mutual funds voted overwhelmingly in support for management proposals in 2007, yet a mere 38% of shareholder proposals were backed.