This article reports five years of group psychotherapy with five male students, about twenty-five-years old, suffering from serious character neurosis, evidenced by work disturbances and feminine, passive traits. They had not been considered suitable for psychotherapy at the Amsterdam Psychoanalytic Institute. They were seen for three hundred sixty-six one-hour weekly sessions. At first the members reacted with phallic narcissism, extolling their sexual prowess; later they manifested sibling rivalry. They remained at this postoedipal stage of parent-child relationship, the group formation preventing further regression. However, there was regression in the group as evidenced by their promoting a sense of safety and allowing an open discussion of personal problems, which signified mutual sexual play to the members. Transference to the leader developed. The author compares the conditioning effect of the pedagogic role of the leader, with that exerted by the members identifying with him. He concluded that the therapeutic effect was lessened by the fact that deep regression did not take place.