'Dilution' Costs to Shareholders
Could Be Large and the Target
Of Regulators' Recovery Efforts

How much is the mutual-fund scandal going to cost mutual-fund companies?
Before it's all over, the bottom lines of mutual-fund companies could be in for some larger hits than are widely expected at this point. One reason is that investigators are focusing on how much "dilution" shareholders suffered in their fund holdings as a result of the short-term trading. That figure could end up totaling many hundreds of millions of dollars -- money that regulators are likely to try and take out of the coffers of mutual-fund companies.
For now, with investigations into abuses involving the trading of fund shares still far from complete, it is impossible to put a price tag on the biggest scandal to hit the fund industry in decades. A first stab at estimating the cost for just one company was taken by Bank of America last week, which said it was setting aside $100 million to pay for legal fees......

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Title: Dilution
Approximate Word Count: 1318
Approximate Pages: 6 (250 words per double-spaced page)

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