Some time today, Tuesday 27th January, the U.S. Senate Finance Committee meets in Washington D.C to hear testimony on the mutual funds scandal. Included is this written testimony.
Abstract: Mutual funds are vulnerable to abuses involving market timing and late trading. Primarily, this is due to a failure of governance, and the delayed nature of settlement of both payments and transfers. This vulnerability is only exploited over time, through a progression of small steps that, individually, raise no alarm, but in sum, cross the line of acceptable behaviour. Solutions to the abuses will be found not in more regulation, but in open governance and a move towards real time gross settlement.
There's also PDF and PS on the same page at http://iang.org/papers/.