WASHINGTON – Capital Markets Subcommittee Chairman Richard H. Baker (R-La.) held a hearing on Nov. 4 to question mutual fund regulators and industry representatives on recently revealed allegations surrounding certain mutual fund trading practices that may have disadvantaged long-term investors. Among others, the Committee invited Securities and Exchange Commission Enforcement Director Stephen M. Cutler, Massachusetts Secretary of the Commonwealth William Galvin and New York Attorney General Eliot Spitzer. On July 23, the House Financial Services Committee, led by Chairman Michael G. Oxley (R-Ohio), passed Rep. Baker's Mutual Fund Integrity and Fee Transparency Act, H.R. 2420, which is pending consideration by the full House of Representatives. "Since Committee passage of H.R. 2420 we've seen a number of extremely disturbing revelations concerning the mistreatment of mutual fund investors," Rep. Baker said. "Subcommittee members have a serious responsibility to get the facts about these particular incidents of alleged late trading and market timing, but we have an equal obligation to consider how these revelations beg the question of whether our proposed legislative reforms for mutual funds go far enough." The Financial Services Committee has prompted extensive oversight of the mutual fund industry over the past year including comprehensive studies on fees; transparency and governance by the SEC and the General Accounting Office; as well as hearings featuring testimony from Vanguard founder Jack Bogle and Investment Company Institute Chairman Paul Haaga. Reps. Oxley and Baker have also corresponded with the SEC on numerous mutual fund issues such as proxy voting, portfolio disclosure and an investigation of breakpoint overcharges. Rep. Baker also outlined oversight steps at a testimony before the Senate Governmental Affairs Committee on Nov. 3.