Mutual Funds: Does Washington Need More Cops On The Beat?

Mutual funds have been riding the crest of spectacular growth. Lured by the prospect of dazzling yields, investors have forsaken the security of federally insured deposits and pumped a staggering $2.1 trillion into funds. Three recent controversies, however, threaten not only to undermine public confidence in the mutual-fund industry but also to embolden Congress to impose regulations whose cost would ultimately be borne by investors.

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