Anyone else wondering why Putnam and the SEC settled so quickly? Is it fishy, or was Putnam trying to make it go away to try and save face (and the billions that haven't been pulled out yet)?
Article here.
Quote:
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The SEC alleged that at least two Putnam money managers, Justin M. Scott and Omid Kamshad, made dozens of in-and-out trades in international mutual funds they directly supervised. SEC fraud charges against the two are pending. Scott's attorney declined to comment, and Kamshad's didn't return a call seeking comment. Such rapid trading reaps quick profits for the investors, but lowers the returns for other participants in the fund. Most funds discourage frequent trades to protect the interests of their investors.
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I still don't understand how the practice of in and out trading was allowed in the first place. Isn't it a version of insider trading?
Anybody local getting a piece of this work?
