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Article: GAO Finds the SEC Failed to Uncover Mutual Fund Market Timing Abuses; Failure Cost Shareholders Billions in Losses
- Article from:
- U.S. Newswire
- Article date:
- April 22, 2005
CopyrightCopyright 2005 U.S. Newswire. Provided by ProQuest LLC. (Hide copyright information)
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WASHINGTON, April 22 /U.S. Newswire/ -- The Government
Accountability Office (GAO) has found in a new report that the
Securities and Exchange Commission (SEC) failed to uncover market
timing abuses by mutual funds that cost shareholders billions over
many years because SEC officials focused on other regulatory
activities. The GAO found that despite industry experts warning of
financial risks to mutual fund company shareholders, the SEC did not
examine for this practice.
The SEC's failure to act cost mutual fund shareholders
approximately $5 billion annually according to one estimate. Alarmed
by reports of this abusive practice, House Judiciary Committee
Chairman F. James Sensenbrenner, ...