I was making the point a couple of days ago that the prosecution of Martha Stewart diverts attention from the system.
Today, the New York Times reports credit analysts on the lending side of three distinguished banks — J. P. Morgan, Deutsche Bank and Bank of America — saw increased risks at WorldCom and privately downgraded the company before they helped WorldCom sell $12 billion in debt and without telling the investors.
It was about a year later that WorldCom collapsed, taking the investors with it.
As I was sayng, it’s not individual crooks, it’s the system.