Greenspan wants action over scandal
13 April 2012
US FEDERAL Reserve chairman Alan Greenspan and US Treasury Secretary John Snow waded into the American mutual funds scandal today, urging swift retribution for wrongdoers.
Criminals who use the investment funds to steal from investors should be punished promptly to preserve trust, they argued in letters to the heads of the Senate and House financial services committees.
At hearings this week the committees will hear witnesses including Securities and Exchange Commission chairman William Donaldson.
The US's largest pension fund, California Public Employees Retirement System, has cut ties with Putnam Investments, one of the firms in the scandal, and withdrawn $1.2bn (£709m) from the company.
