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Sarbanes-Oxley News & Developments
Bear Stearns Fires Six Over Fund TradesFour brokers and two assistants are removed in connection with mutual fund trading, market timing.
> > Investment bank Bear Stearns Cos. fired four brokers and two assistants last week in a move related to mutual fund trading, according to a report publised Monday, November 17, 2003, citing disciplinary records.
The Bear Stearns employees were suspended without pay October 24 and sacked November 12, the Wall Street Journal reported. Their official disciplinary records filed with securities regulators cite activities related to mutual fund trading, including market timing, as the reason for their terminations, according to the newspaper. Bear Stearns representatives were not immediately available to comment early Monday.
Market-timing trades are not technically illegal, through regulators say they can hurt long-term investors and violate fund prospectuses. Regulators have accused a number of fund companies of allowing priviledged investors and, in some cases, their own executives to profit by making rapid in-and-out trades and exploiting stale pricing data.
Source: CNN Money
Published:2003-11-18
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