Monday, January 15, 2007

Another Fund Wrist Slap

Chuck Jaffe of Marketwatch has a great story on the absurd wrist slap that was meted out last week by the Securities and Exchange Commission to former Putnam Investments boss Lawrence Lasser in a serious mutual fund pay-for-play case.

Says Jaffe: "The Lasser case was seen as a step up in enforcement, a sign that regulators wanted top managers to know that their necks are on the line. Forget about it: The settlement amounted to $75,000, a one-fingered slap on the wrist. "

That's an absurdity. As I pointed out in a New York Times op-ed article a few months ago, the feds need to make Wall Streeters feel pain when they break the law. "Pain from laughing too hard" is not what I had in mind.

© 2007 Gary Weiss. All rights reserved.


Wall Street Versus America was published by Penguin USA on April 6.
Click here for its listing and here for more information on the book, from my web site.

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