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Whether the two fund companies sold into the sharp declines in the sector this week is not known.
On one hand, the two fund managers placed large bets on global currencies and commodities by watching charts and focusing on political trends.
Two of the favored investors had strong ties to the two fund executives, say regulators, and were among the main investors benefiting from the practice.
A person with direct knowledge of the situation, who spoke on condition of anonymity because of the sensitivity of the situation, identified the two fund managers as Kevin Chang and Wilson Wong.
The problem was that in all previous communications to the investors, the two fund managers had suggested that only about six percent of the funds were invested in subprime mortgages.
Asked why Putnam had not fired the two fund managers found to have conducted market timing, Ms. Fisher explained that they had not traded in their own fund shares.
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Ms. Harman points out several key differences in the two fund-raising campaigns.
At the two fund-raisers at private homes in the San Francisco Bay area on Thursday, he raised around $1.8 million, organizers said.
The two fund-raising functions he organized, including a gala dinner dance last November at the Rye Town Hilton, netted more than $400,000.
But Mr. Nemazee, a Clinton finance chairman, said he would like to see the two fund-raising operations merged more substantially.
"There are times when we're were among family, we're among Democrats where we want to talk about being Democrats," Mr. Obama began his speech at the first of the two fund-raisers, at the Fontainebleau hotel.
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