How did corporate icons become corporate criminals? Follow the money.

It has indeed been a trying hour for the Republic; but I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working on the prejudices of the people until wealth is aggregated in a few hands and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war.

Yes, as through this world I’ve wandered
I’ve seen lots of funny men;
Some will rob you with a six-gun,
And some with a fountain pen.

The list of corporate criminals grows longer. Men who a few months ago were considered icons of industry are carted off in handcuffs. Hundreds of billions of dollars in shareholder value have evaporated as companies are forced to restate deceptive financial reports.

In Washington, Congress swiftly passed a business fraud bill by overwhelming margins, legislation designed to toughen regulation of companies’ financial reporting and provide oversight of independent auditors. On Tuesday Bush signed the bill, assuring us that, despite the significant downturn on Wall Street, our economy is sound.

But how did we get into this mess in the first place? A few bad apples? A handful of insatiable CEOs? Underzealous oversight? It’s really not that difficult; as usual, just follow the money. (more…)

Saturday, August 3rd, 2002