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An expensive month at Federated…

Federated Investors (FII) , which just announced last Wednesday that it was also being investigated by federal and state authorities in the widening mutual fund scandal, said on Tuesday in its 10-Q that it has already spent $1.1 million on its own internal investigations related to the scandal. The large mutual fund company, which has over 135 funds and manages over $194 billion, has already hired two law firms to do its own internal investigation. How much more will the scandal cost Federated? The company says it doesn’t know and it’s difficult to make estimates based on the $1.1 million already spent since the company doesn’t say when it first began its own investigation. Here’s what it does say: “Additional costs will be incurred in the future as the investigation continues.” The company also noted in the Q that it has suspended its stock repurchase program as a result of the ongoing investigation.