My observation is that the significant deficiencies in mutual fund practices resulted from a combination of factors and a breakdown in controls. First, mutual fund activities were not being effectively overseen by their mutual fund boards.
Stanley Fischer was Pentti’s thesis supervisor at the MIT. Stan told me about Pentti: “He came almost every day after 4 o’clock to talk. Pentti had an incredibly wide scope of interest. So it was very interesting. But finally in April, I told to him that it is nice to talk but not much has happened with your thesis.