Rules aren't the problem; some fund executives are

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http://seattletimes.nwsource.com/html/businesstechnolog...

The recent big news for fund investors was old news for many people in the industry.

They had been forecasting this problem for years, and even took steps to stop it. And then they ignored their own rules.

New York Attorney General Eliot Spitzer brought a complaint against a hedge-fund firm that worked with Bank of America to make trades after funds were supposed to be closed for the night.

These types of trades — which allegedly allowed Canary Capital Partners to use late-breaking news to figure out which funds might profit from it — were clearly illegal; they are also much more likely to be isolated than some of Spitzer's other concerns.

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