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University of Maryland School of Law




HOW DID MUTUAL FUNDS AND THEIR ADVISERS GET INTO THIS MESS? It is impossible to offer a clear answer to this question. Proving causation is generally very difficult. We can examine, however, what has changed in the past thirty years and draw our own conclusions. This Article lists a number of changes that have occurred in the past thirty years and focuses on one change in particular. These changes point to altered theories, categories, images, and ways in which we interpret and approach the law. The conceptual substitutions that have occurred offer the justifications for the evolving attitudes, behavior, and laws. Almost every practical change was brought about by an underlying fundamental substitution in the culture of professional advisory services. These changes took years to develop and came to fruition in the 1990s. It may well be that this is how we got into this mess. This Article offers a short outline of the problems and includes an excerpt from my book, Trust and Honesty, America's Business Culture at a Crossroad.

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