Strong Financial Corp. may settle with state and federal regulators as early as this week, moving the mutual fund scandal-scarred company one step closer to being purchased by Wells Fargo, The Wall Street Journal reports.

Buying Strong, experts say, is somewhat of a daunting task, considering the once mighty firm was one of the first companies named in New York Attorney General Eliot Spitzer’s probe. As a result, total assets under management have fallen $8 billion to $34 billion, and several portfolio managers have left. Founder Richard Strong has since put the company up for sale and relinquished up all his posts. The company would not comment on the report that a settlement is imminent, but a spokeswoman said that talks with regulators are continuing.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.