While Wall Street ripped roariously with scandal after scandal in 2002, the fund giants appeared to sit sanguinely on the sidelines. Insiders, on the other hand, know that the mutual fund industry didn't quite get by without a few scrapes of its own.

The fund managers who owned large stakes in the likes of Enron, WorldCom, Tyco and Global Crossing, at the height of their phony glory - including Fidelity, Morgan Stanley, Oppenheimer, PBHG, and Van Kampen - have largely escaped public scrutiny for their misjudgments. All the while, pit bull regulators grabbed high-profile sell-side analysts, Jack Grubman of Salomon Smith Barney and Frank Quattrone of Credit Suisse, in their frothing jaws.

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