"The closer you get to the fire, the more you get burned, but that won't happen to us, because it's always been a matter of trust." -- Billy Joel

WASHINGTON -- The words of this famed Long Island crooner have a striking resemblance to the attitude of the mutual fund industry prior to the market-timing and late-trading scandals that were exposed last year. But that so-called trust has since been shattered by a wave of egregious behavior, and the fund community now must take action to rebuild its relationship with investors who have been burned. In other words, it's gut check time.

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