In what could mark a turning point in a 26-month-old scandal that has touched every corner of the money management industry, Federated Investors reached a $92 million settlement with state and Federal regulators last week over allegations that it allowed market timing and late trading in some of its mutual funds.

Officials with the Office of the New York Attorney General would not comment on the status of its ongoing investigation, which first broke in September 2003 with the takedown of the New Jersey hedge fund Canary Capital Partners, but judging from Eliot Spitzer's words, the race is much closer to its finish than its start.

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