Wednesday, July 13, 2005

Banged to rights

Bernie Ebbers, the fraudster head of telecoms giant WorldCom cannot have expected to have received a 25 year sentence. After all, accounting scandals aren't real crimes are they? Even if the sums involve amount to $11 billion.

Ebbers, claiming health problems - usually know as the Pinochet defence - and past good works is pressing for less jail time. After all, look at the way that other fraudsters have been treated. Take that nice Mr Milkin. All that insider trading but out in a few years.

Of course, the financial press cites the thousands of shareholders who lost money on WorldCom rather than the hundreds who lost jobs. One cannot deny that there are small investors and others foolish enough to have bought into the pre-bubble hype who deserve sympathy.

The attack on white collar crime was a final component in maintaining the legitimacy of US finance capital in the wake of the 2000/1 downturn. In reality, expect Ebbers sentence to be significantly reduced in the light of a 'lesson learned'. co-operation with the court and good behaviour. After all, poor Ebbers did reliquish most of his personal wealth to compensate shareholders. Now he is estimated to be worth a mere $25 - $40 million. Poor man, what is there to look forward to, even when he does get out? Sad.

No comments: