The mutual fund scandal
is spreading, with Massachusetts Secretary of State William F. Galvin
saying that he will be charging Putnam, one of the ten biggest fund sponsors, with civil securities fraud. The fraud allegation arises from Putnam's expressed policy of forbidding market timing in general while allowing it for certain accounts. Meanwhile, New York Attorney General Eliot Spitzer
is investigating Federated Investors, another mutual fund sponsor, for late trading. The SEC has asked both companies for information about their trading policies, and an SEC investigation appears to be under way for Putnam.