All across Wall Street, Washington and Corporate America, we see our leaders using our investment and tax dollars as their personal piggy-banks. Before the subprime-credit crisis, your fund managers were doing every day, billions skimmed. They control the bulk of Main Street’s retirement money. And unfortunately, you’ll never know how much they are siphoning off the top of your returns, although research by independent experts tells us their “take” reduces your returns by 30% or more.
How do they get away with with this robbery? While the SEC at least requires some minimal disclosures from Corporate America, the fund industry gets away with murder. Congress protected them by specifically exempting mutual funds from the disclosures required of corporations by the Sarbanes-Oxley Law. Of course that makes no sense. Why? Because funds control $12 trillion of Main Street money, your money, and yet that blanket exemption from disclosure lets America’s fund managers operate like the CIA and the Mafia, hiding behind a “code of secrecy” with a virtual license to steal. (More)