Soon after, Pershing got hit with three class actions seeking unspecified damages for its role in the mutual fund timing scandals.
The reasons can be multitude, but include lack of funds, timing, and promotion.
Although the legislation comes at a time of unprecedented cuts in public funding, its timing also coincides with the adult arm of the profession reconnecting with its own identity.
So many factors affect success — from funding and timing, to experience, execution, competitive landscape and even luck.
Mutual fund market timing: By letting favored customers trade mutual funds after hours, managers like Bank of America and Janus were shortchanging buy-and-hold investors.
One investigation foundered when the Madoff team was abruptly shifted to mutual fund market timing, since the S.E.C. lacked the manpower to do both.
A newly acquired financial services company faces lawsuits over mutual fund market timing.
At Bear Stearns traders built up a thriving volume in fund-market timing, a legal if ethically borderline practice that entails jumping in and out quickly to profit off short-term price moves and the funds' stale once-a-day pricing.
"With this next round, and the escalation of the charges, it's 'Oh, wait, there were fund mangers involved and the C.E.O. of a fund company market timing their own funds to the detriment of shareholders,"' Mr. Phillips said.
"We tried to stay under the radar, with trades of under $10 million," said David R. Loeser, a vice president of D. R. Loeser, whose company manages $34 million in mutual fund market-timing investments.
