Tip of the Iceberg?
{{#rendered}} {{/rendered}}While waiting for my plane out to Salt Lake City, I struck up a conversation with a viewer. Actually, he struck up the conversation with me.
He said that he hoped all the Enron guys would rot in hell.
"Throw 'em in jail and throw away the key," he said.
{{#rendered}} {{/rendered}}"And the rest of all those CEO bums too," he added. "They're all crooks."
"All of them?" I asked.
"Every single one," he replied.
{{#rendered}} {{/rendered}}I politely told him that I disagreed.
Enron was a big mess, but a unique mess and hardly a typical mess.
As no less than the Wall Street Journal reported this weekend, far from leading to a cascade of criminal convictions for corporate America, what's remarkable, is that it hasn't.
{{#rendered}} {{/rendered}}Sure, there were Adelphia Communications and Tyco and Global Crossing. But when you think about it, that's it.
They are a handful of companies out of thousands of publicly listed ones, thousands more private concerns. Each were their own sicknesses — no signs of rampant illness.
My conclusion: Most companies are soundly run, most CEOs are decent and most enterprises aren't run like criminal enterprises. And the ones that are, are eventually caught.
{{#rendered}} {{/rendered}}Sarbanes-Oxley came about as a means to police all, but I think it's left more companies burdened by the suspicion of guilt than guilt itself. So they pay the enormous legal and bureaucratic costs not to be another Enron — even though the vast, overwhelming majority are not.
The fact is, there will always be crooked players in a system, Sarbanes-Oxley or not. The reality since the fall of Enron is the amazing fact they are so few. And the good guys — who get no press — are so many.
The guy at the airport didn't want to hear it. I guess being an optimist, but I was duty-bound to say it.
{{#rendered}} {{/rendered}}Click here to order your signed copy of Neil's new book, "Your Money or Your Life."
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