Infectious Greed: Restoring Confidence in America's Companies

Chapter 12. New Rules, Regulations, and Policies

As one corporate scandal after another broke in 2002, the drumbeat for corporate reform became louder. The scandals were front-page news in the national newspapers and the lead stories of the nightly news. The media seemed to demand reform. Even self-proclaimed opponents of nearly all new regulation, like CNN financial journalist Lou Dobbs, acknowledged that the government should step in.^[1] Angry employees and upset investors expressed displeasure to their government representatives. People seemed to want action taken against those who were responsible for the fall in their investment portfolios.

Politicians and regulators heard the drumbeat. Indeed, politicians were especially attuned to their ...