Sep. 25–South Carolina State Treasurer Grady Patterson has joined a growing list of state and federal regulators reviewing allegations of trading abuses at Bank of America Corp.’s mutual fundoperation.<\/p>\n
Neither the bank nor state Treasury officials would say whether South Carolina, or investors in its Bank of America-run college savings plan, might have been affected by the alleged trading abuses.<\/p>\n
New York Attorney General Eliot Spitzer launched an investigation Sept. 3 alleging the institution had given New Jersey-based hedge fund Canary Capital Partners LLC unfair trading privileges.<\/p>\n
State Treasury spokesman Trav Robertson said that Patterson “has a responsibility as the steward of our state money to review any bank or entity that is accused of something like that” and that handles any state-related accounts.<\/p>\n
Bank of America won a contract in 2002 to operate the state’s Future Scholar College Savings plan. The program has since grown to 17,000 investment accounts and about $150 million in assets. The plan offers investors a choice of mutual fund investments.<\/p>\n
Patterson has “spoken with Bank of America officials, expressed his concern, and is waiting for the attorney general of New York to finish his investigation before trying to assess any possible damages,” Robertson said.<\/p>\n
Bank of America spokesman Bob Stickler said that the bank plans to reimburse all fund holders affected by possible trading abuses. “To the extent South Carolina was affected, those investors, too, would get the same reimbursement,” he said.<\/p>\n
He also said that since the investigation began, the bank has fired “several employees” and pledged to return all fees earned from any improper trading.<\/p>\n
Other mutual funds named in the investigation along with Bank of America’s Nations Fund are Janus Capital Group Inc., Strong Capital Management and Bank One Corp.’s fund group.<\/p>\n
—–<\/p>\n
To see more of The Post and Courier, or to subscribe to the newspaper, go to http:\/\/www.charleston.net<\/p>\n
(c) 2003, The Post and Courier, Charleston, S.C. Distributed by Knight Ridder\/Tribune Business News.<\/p>\n
BAC, JNS, ONE,<\/p>\n","protected":false},"excerpt":{"rendered":"
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