No pity for Ex-Enron execs

Keivan Deravi, an economist at Auburn University Montgomery, said the Enron scandal undermined the essential trust between investors and corporate leaders. Following the accounting implosion, investors moved a lot of money out of common stocks and put that money toward real estate and commodities, p...

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Bibliographic Details
Published inKnight Ridder Tribune Business News p. 1
Main Author Mike Linn and David Irvin
Format Newsletter
LanguageEnglish
Published Washington Tribune Content Agency LLC 26.05.2006
Subjects
Acquittals & mistrials
Executives
Institutional investments
Scandals
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Summary:Keivan Deravi, an economist at Auburn University Montgomery, said the Enron scandal undermined the essential trust between investors and corporate leaders. Following the accounting implosion, investors moved a lot of money out of common stocks and put that money toward real estate and commodities, partially fueling the housing boom of the past half-decade. "Enron was a low point in corporate America history," Deravi said. "Enron showed us we need more than trust. We need to do our homework." The Sarbanes-Oxley Act, which tightened the accounting standards used in corporate America and made doctoring the books a major federal crime, emerged after the Enron collapse. [Richard Scrushy] was the first defendant to be charged with violating the anti-corruption law after it was enacted.