Fund performance

Ninety-percent of closed-end funds are trading at discounts, some as high as 15% to 35% of their net asset values, a marked spread from their 4.4% average since 1997, The Wall Street Journal reports. And the spreads appear not only to be lasting longer, but to be growing larger.

Eighty-seven percent of stock mutual funds were in the red in the third quarter, with the average diversified stock fund falling 10% in the quarter and the average stock mutual fund declining 11% in September alone, according to Lipper data, Gannett News Services reports. September was the biggest one month tumble for U.S. equity funds since 1998.

WASHINGTON — Treasury Secretary Henry Paulson on Monday outlined the process for banks and thrifts to request capital from the government.

Despite the tremendous turbulence in the stock market, few investors are planning to sell their stocks and mutual funds or to curtail or entirely cease contributions to their 401(k), according to a poll from Ipsos/McClatchy. That said, more are paying closer attention to federally insured bank deposits, now that the guarantee has been expanded from $100,000 to $250,000.

The Financial Industry Regulatory Authority has fined Banorte Securities International $1.1 million for improper sales of B shares of offshore mutual funds, as well as inadequate supervisory systems to monitor the sales.

WASHINGTON - Though the Federal Reserve Board's reputation is built on its management of monetary policy, Chairman Ben Bernanke said Wednesday that the role of banking supervision at the central bank needs to be revisited.

HUNTINGTON BEACH, Calif. - As omnibus accounts continue to grow in size and scope, it remains crucial for investment managers to keep oversight high and costs low.

HUNTINGTON BEACH, Calif. - Mutual fund industry leaders admit that years of deregulation allowed the current economic crisis to unfold, and many are anticipating a backlash of new and excessive regulations to result.

Despite the tremendous turbulence in the stock market, few investors are planning to sell their stocks and mutual funds or to curtail or entirely cease contributions to their 401(k), according to a poll from Ipsos/McClatchy. That said, more are paying closer attention to federally insured bank deposits, now that the guarantee has been expanded from $100,000 to $25,000.

Reserve Funds said that due to difficulties in determining investor shares held in its flagship Primary Fund on Sept. 15, it would have to postpone its planned $20 billion distribution of redemptions on Oct. 13.

The Morningstar 1000 Hedge Fund Index declined 7.87% in September, its largest one-month decline since its inception in January 2003. In the third quarter, the index declined 13.17%.

More than ever, hedge funds are loading up on unusually high amounts of cash, a clear sign that the smart money is bearish on the market through the rest of the year, The Wall Street Journal reports.

The mutual fund industry has a long tradition of innovation and creative problem solving in times of challenge. These past months have been sobering, and the uncertainty around the financial services sector is not yet waning.

In a new ad campaign, New York Life aims to distinguish itself from AIG and the growing host of other beleaguered financial services companies by emphasizing its long history, big surplus, AAA rating and customer-focused, mutual ownership structure.

NEW YORK - In the wake of the ongoing credit crisis and illiquid money market, much of it due to the failure of a single money market mutual fund, the Securities and Exchange Commission plans to overhaul Rule 2-a7. Separately, the Department of the Treasury is looking into creating a market stability regulator with omniscient powers across the "entire financial system."

NEW YORK - As credit freezes up and liquidity all but vanishes, there is an enormous temptation for financial institutions and investors to hold on to their cash and brace for the worst.

With just $6 billion in assets left, of what once totaled $83 billion, Reserve Management is liquidating its 18 remaining funds.

The U.S. Justice Department has subpoenaed several large firms and agencies as part of an investigation to determine whether Lehman Brothers Holdings Inc. misled investors before its Sept. 15 bankruptcy filing, according to the Stamford Advocate.

Investors are continuing to add money to money market funds, adding $49.39 billion during the week ending Oct. 7, according to the Money Fund Report, published by iMoneyNet Inc. Total assets are now at $3.388 trillion.

Putnam Investments has named Jeffrey R. Carney as the new senior managing director and head of global marketing and products, effective Oct. 27.