Spitzer on the heels of mutual funds now... looks like late trading and market timing are the main culprits...the first one is easy to understand, its clearly unethical... the second, i.e., market timing, which affects long term investors is a bit convulated for me to understand.

Most fund managers think the SEC’s renewed focus on the industry, when added to Mr Spitzer’s probes, will only make it harder for them to attract new investors. William Donaldson, the SEC’s chairman, recently published some proposed rule amendments that would curb late trading and market timing. Moreover, the SEC is also planning to require funds to publish their lists of holdings four times a year rather than twice, according to the Wall Street Journal.