Financial regulation in the US is badly in need of a fundamental overhaul. That much is clear from the scandals currently engulfing the US mutual fund industry and the New York Stock Exchange (NYSE).
The damage to investor confidence in the US from these developments is potentially much greater than the fall-out from the scandal over biased research in the banking industry. Outside Wall Street, the US public has always regarded plausible investment bankers with a degree of suspicion â an attitude that probably dates back to the 1930s. But mutual funds are different.
