Yes, just when you thought all of Wall Street's dirty little secrets had been revealed, new scandals have emerged, cracking open fresh
faults on the finance-career landscape. Here, a quick primer on the latest controversies and how they affect job prospects.
MUTUAL FUNDS
THE BIG STINK Fund companies are accused of taking the "mutual" out of funds by allowing market timers to trade fast for short-term gains, diluting overall profits. They also bought and sold after hours, and may have traded for personal accounts.
WHO'S AFFECTED Low-ante mutual fund investors, 401(k) managers, the funds they're deserting - and a growing list of subpoenaed corporate officers.
LIKELY RESULT Congress and the SEC have each already proposed measures to end timing trades and post-bell buying.
CAREER IMPACT Though there won't likely be any Andersen-scale implosions here, job seekers should interview only at funds with clean records and ask about governance and directorship rules.
HEDGE FUNDS
THE BIG STINK High-risk hedge funds maintained large positions in mutual funds, which, in return, allowed the hedgers to trade late or fast.
WHO'S AFFECTED Fund partners, who may soon be subject to regular audits if the SEC makes them register as investment advisors.
LIKELY RESULT The SEC will look for ways to rein in illegal practices without clipping recent wild growth.
CAREER IMPACT Could make this the best time to get into securities: When confidence returns, so will job competition.
VENTURE CAPITAL
THE BIG STINK Feds are increasing scrutiny over governance and money laundering.
WHO'S AFFECTED All firms structured as private partnerships, which currently enjoy little oversight.
LIKELY RESULT The SEC seems to be letting up on VCs - for now. But some investors want to see better reporting of holdings.
CAREER IMPACT As caution reigns and big firms go with experience, the best opportunities may exist at smaller firms, where promotion is more likely.
RUSH LIMBAUGH
THE BIG STINK Limbaugh allegedly paid for his black-market OxyContin habit by laundering funds from his bank accounts.
WHO'S AFFECTED Stockholders of Purdue Pharma L.P., OxyContin's manufacturer. Rush's immoderate use of the drug inflated the stock's value, creating an "Oxy bubble." (OK, not really. Sorry. We got nothing.)
LIKELY RESULT The feds will start investigating Bob Dole's use of Viagra. Can he really be downing that much of the stuff?
CAREER IMPACT Will the government crack down on the banking industry? (Limbaugh's bank allegedly allowed huge withdrawals without notifying the Feds - a no-no.) No more free calendars for drug-addled radio hosts.
