New York's politically astute Attorney General Eliot Spitzer forced Putnam Investments and Alliance Capital Management to lower fund fees in the aftermath of the mutual fund market-timing scandals.
The SEC should also push harder to lower fund fees, improve disclosure and insist on overseeing hedge funds, the customers at the root of the mutual fund trading scandal, Bogle said.
A spokeswoman said the layoffs were unrelated to lower fund-raising.
Capital One expects to reap $90 million in savings from combining back-end systems and staff, as well as $200 million from lowering funding costs.
Interest rates in these economies are close to zero and their central banks have had to come up with new ways to lower funding costs and spur banks to make loans.
The market is being buoyed through a subsidy scheme that lowers funding costs for mortgage lenders and through special help for low-deposit borrowers.Despite favourable valuations, Japanese house prices continue to fall, though at a modest 2.2%.
But compared with Western banks, which hold lots of esoteric securities, its assets are skewed towards bonds and paper that can be used as collateral to borrow from the Central Bank, lowering funding risk.
Lowering funds in power plants, fire department and police can lead to problems but lowering funds for schools and hospitals is OK, as long as it is a decent amount of money.
It lowered the fund's unrealized gains, he said, and made it more attractive to new investors.
Last month, the central bank lowered the funds rate as far as it could, to a tight range between zero and a quarter of a percent.
The Federal Reserve raised hopes last week of a lowered federal funds rate after slashing a secondary rate.
