News Summary: Ex-fund directors settle SEC claims

The Associated Press
June 14, 2013

FUND DIRECTORS SETTLE: Eight former mutual fund directors have settled federal claims that they allowed others at the firm to set values for subprime mortgage securities that were held by funds on which investors lost $1.5 billion.

DELEGATING DUTY: The Securities and Exchange Commission signed the settlement with the former directors of five Regions Morgan Keegan funds. The SEC had accused the directors of delegating the duty to fund managers, even though directors are required by law to set values when market prices aren't available.

NO PENALTY: The directors aren't paying any penalty under the settlement. They neither admitted nor denied wrongdoing but agreed to refrain from future violations of the securities laws.