Industry-wide late processing of mutual fund trades has some in the industry worried. The practice is commonplace and perfectly legal, so why the concern?

Facing the biggest scandal in the history of the industry, late processing can sound an awful lot like late trading to the average Joe investor and the industry is worried about its image. Late trading, which is at the heart of New York Attorney General Eliot Spitzer's probe, is out and out illegal and has been described by many as an egregious abuse by the firms accused of undertaking these practices.

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