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Donaldson comments fuel SEC row with Spitzer

Senators question SEC's ability to regulate mutual funds

Tensions between the Securities and Exchange Commission and Eliot Spitzer, New York State attorney general, have escalated after comments made by Bill Donaldson, SEC chief, at a Senate hearing.

Donaldson responded angrily to criticism from Spitzer over the SEC settlement with Putnam over its role in the mutual fund trading scandal. Testifying at a Senate banking committee hearing Donaldson accused Spitzer of being 'misguided'.

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