March 16, 2004
The governments previous collusion in not requiring full disclosure has resulted in todays scandal. The resulting loss of investor confidence in mutual funds, specifically, and the capital markets, in general, threatens to undermine the financial basis of the American economy.
The result of this failure to regulate, perhaps responsive to industry influence related to campaign contributions, will be that the American economy will lose ground among the competing economies of the world. The narrow self-serving influence on government of specific industries and interests will always backfire, ultimately leading to the decline of American preeminence among the peoples of the world.
Thus there can be no debate about the need to increase disclosure not only for mutual funds but for all financial transactions. There is simply too much at stake, including the credibility of the Government of the United States.