So the prospect of sanctions like losing your license, various types of sanctions are likely to be very remote, even more remote than the possibility of sanctions were for the Price Waterhouse Coopers partners who were actually warned.
Bogle’s comments, because he tied this issue to the mutual fund industry, which is focused much on marketing, and the interesting effect is that index funds out perform three-quarters of the mutual funds out there.
And if you got honest opinions from mutual fund managers, most of them believe that they’re going to out-perform the market not because they’re liars but because they’re biased in their interpretation.
CHAIRMAN LEVITT: None of us have talked about, however, what I regard to be a very real disincentive to not manifesting obvious independence standards or standards of obvious independence. And that is the very fact that their reputations are on the line every time they provide astatement, and I don’t want to disregard that.
This is not that clear cut an issue. We’re not dealing with a bunch of hide binders on one side and a group of moralists on another side.