The New York Press Club said today that I have won its 2016 award for consumer reporting on the Internet for my stories about cybersecurity problems at The Vanguard Group.
Over the years, the mutual fund giant the Vanguard Group has had no peer among financial companies when it comes to goodwill from customers and the media. It regularly dominates various “best” mutual fund lists put together by financial publications. Founder John C. Bogle is so celebrated for his focus on low costs and doing the right thing for the small investor that he’s frequently referred to as “Saint Jack.”
So why is a vocal collection of current and former employees putting so much energy into blasting the heralded operation? I address that question in my latest column for TheStreet, which you can read here.
As if a turbulent day for stocks wasn’t problem enough for investors, glitches in the websites of many brokerage firms added to the public’s headaches today.
Testy customers took to Twitter to blast their brokerage firms and mutual fund companies for Web sites that had crashed, leaving them unable to execute trades in a volatile market.
As always, euphemisms abounded. Brokerage firm spokespeople said they had “a slowness issue,” or “a brief period of sporadic Web site inaccessibility,” and the like. But a crash? Not us.
Investors weren’t buying it. “@TDAmeritrade seriously? your servers are crashing today,” wrote one customer. And another: “What a disaster. Time for a new broker.”
You can read my article for TheStreet here.
CNBC’s SquawkBox invited me in yesterday to discuss my story about The Vanguard Group’s online security. A whistleblower has been speaking with me on the record about a complaint she filed against Vanguard with the Securities and Exchange Commission. You can read the article here.
And here’s the CNBC video:
A whistleblower has gone to the Securities and Exchange Commission with complaints about the security of customer accounts and information at The Vanguard Group.
The world’s largest mutual fund company told me that its security is strong. But the whistleblower, who spoke to me on the record about her complaints, disagrees. You can read my latest column for TheStreet here.