The notion that the fund scandal is all but over has been gaining steam in the general press and among some in the industry recently, but the reality is that while it has been a long, hard nine months, the mutual fund industry is far from out of the woods. Disinterest should not be mistaken for inactivity.

The general press has apparently grown tired of the steady flow of fund abuse cases coming through the pipeline. In fact, New York's pit bull regulator Eliot Spitzer may even be starting to yawn at the prospect of attacking more fund complexes. Spitzer has said that the scandal may have peaked, and Stephen Cutler, the Securities and Exchange Commission's director of the division of enforcement, indicated the worst of the market-timing and late-trading portion of the scandal is likely past.

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