You may have heard of Senators Richard Shelby
(R, Alabama) and Paul Sarbanes
(D, Maryland). As Chairman and Ranking Member of the Senate Banking Committee, they were responsible for the Committee's series of hearings into the mutual fund industry.
They may be back on the fund trail...
Yesterday, Shelby and other senators gathered for a
of a Banking subcommittee to discuss oversight in the insurance industry. Among the hot topics included insurance and mutual fund sales to GIs.
, Shelby and Sarbanes are requesting that the Government Accounting Office
(GAO) investigate the sales practices: "Senator Sarbanes and I are sending a letter ... requesting an examination of the troubling reports that military personnel were sold insurance and mutual funds that appear to have excessive premiums coupled with minimal benefits."
While a GAO spokesman told Reuters
that the agency was already investigating insurance sales, unfortunately for the mutual fund industry, the agency will now take a look at the senators' request.
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