CNN reported yesterday that Former Enron CEO Jeff Skilling is going to jail:
Jeffrey Skilling was sentenced to 24 years in prison Monday for his role in the fraud at Enron that brought down the nation's seventh-largest company and came to stand as a symbol for an era of corporate fraud in America...More than 4,000 Enron employees lost their jobs - and many their life savings - when the company declared bankruptcy in December 2001. Investors lost billions.
This is good for markets, as investors will have more confidence in the ability to prosecute wreckless managers. I wonder how this will effect the midterm election? Since Bush and the GOP previously got hammered on their ties to Enron, will voters interpret this as Bush's buddies are going to jail? (Actually, Bush was friends with Kenneth Lay, not Skilling.) On the other hand, will people give the Bush administration credit for cracking down on these corporate crooks and restoring confidence in investors? A third possibility - voters are clueless and won't consider this at all!
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