The probe into whether broker-dealers tipped off hedge fund clients about mutual fund trades is very interesting. But it remains to be seen if it will blow up into the kinds of scandal that Eliot Spitzer ignited (recall the front-running and timing scandals). The significance of those scandals cannot be overstated. Just look at how well the ones that were untainted have fared since. There are some that remain skeptical. After all, mutual fund traders have been complaining about this for years. We'll see if the probe substantiates their claims. My sense is that reams of quantitative trading data that will be able to prove the point--if there is one--not unlike the options backdating scandals. Of course, if the data paint a damning picture, who knows what will happen. Another industry-wide settlement?

For more:
- here's some Morningstar commentary