FROM THE editors December 1, 2003 Issue

Restoring public trust

Editor

In recent weeks, there have been troubling allegations of a breach of trust by traders on the New York Stock Exchange and by the mutualfund industry. As The Christian Science Monitor reported, the scandals have included "insider trading, sweetheart deals for special clients, and accounting 'irregularities'" ("Mutual Trust," November 4, 2003).

The Securities and Exchange Commission has concluded that investors were shortchanged some $155 million dollars over the last three years. Public outcry has been great. Several CEOs have resigned in the wake of the allegations, and multiple investigations are underway.

Yet even as steps are being taken to prosecute those who may be found guilty of malfeasance, the question remains: How can public trust be restored after such a large breach of trust? Still more important: What forms the basis of trust?

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