George Weigel writes (yet another) must-read on the matter:

The question now is, how shall that good be saved?
It can only be saved if there is full, public disclosure of Fr. Maciel’s perfidies and if there is a root-and-branch examination of possible complicity in those perfidies within the Legion of Christ. That examination must be combined with a brutally frank analysis of the institutional culture in which those perfidies and that complicity unfolded. Only after that kind of moral and institutional audit has been conducted, and has been seen publicly to be a clean audit, can the Legion of Christ, and the broader Church, face the questions of the Legion’s future—which are, candidly, open questions:
• Can the good that has come from the Legion of Christ and Regnum Christi be disentangled from the person and legacy of Fr. Maciel?
• Can the Legion be reformed from within, after those complicit in the Maciel web of deceit have been dismissed?
• Must the Legion be dissolved, with perhaps a core group of incontestably honest former Legionaries re-forming a religious congregation dedicated to the ideals that have been fouled by Fr. Maciel’s sins and by a manifestly wounded institutional culture?
None of these questions can be thoughtfully or prayerfully answered until there is a full audit.
And, as the flailings and failures of the past ten days have made clear, that audit cannot be conducted by the Legion leadership, which is likely beset by a maelstrom of internal and external pressures. It must be mandated by the pope, and it must be conducted by someone responsible to the pope alone—not responsible to the relevant parts of the Vatican bureaucracy, not responsible to the cardinal secretary of state, but responsible to the pope alone. There is simply no other way open to an accounting that will be both scrupulously honest and publicly credible.
To take an image from corporate law, the Legion of Christ must be immediately put into receivership: A personal delegate, appointed by the pope, must be empowered to take over the governance of the Legion of Christ and to conduct the moral and institutional audit required. The papal delegate would be instructed to report his findings, both interim and final, to the pope alone, and he would be instructed to make recommendations (again, to the pope alone) addressing the possible futures, including dissolution or dissolution-and-reconstitution, of the Legion.