Business briefs 6/24/04

Independent chairmen required for fund boards

WASHINGTON -- Mutual fund boards must have chairmen who are independent from the companies managing the funds, the Securities and Exchange Commission ordered Wednesday in a narrow vote as it addressed an industry scandal. The new rule, to take effect in 18 months, could shake up the $7 trillion industry to which some 95 million Americans entrust their savings. The boards of 80 percent of U.S. funds -- or some 3,700 funds -- will have to replace their chairmen, SEC officials say.

Airlines gave passenger data to government

WASHINGTON -- The government may have broken federal privacy law when it asked airlines to turn over personal data about passengers for a test of background-check project, a senator said Wednesday. Four airlines and at least two reservation systems provided the information to the government or its contractors, the acting head of the Transportation Security Administration told a Senate committee. Some of the companies denied that. The agency previously had said only two airlines had done so.

-- From wire reports