Monday, July 29, 2002

Enron's Enablers

There were many, but today's Wall Street Journal excellent lead editorial rightly castigates Citi and JPMorgan Chase as the worst offenders.

Yes, it is probably true that what Citi and JP Morgan Chase did was "legal," but it was fundamentally bogus. Markets function in lock-step with transparency. The more transparency there is, the better the market functions. What Citi and JPMorgan Chase did was antithetical to the proper functioning of the markets. And what we will find, as more details of all these corporate scandals become public information, is that Citi and JPMorgan Chase were not the only enablers of Enrons.