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...blue-chip European companies that make up the Dow Jones Stoxx 50 index have declined 24%. That bonfire of capital has been fueled only in part by the revelations of corporate sleaze on the other side of the Atlantic. "Even if Europe hasn't had a scandal like Enron or WorldCom," says Sorbonne economist Christian de Boissieu, "the situation confronting our telecom operators, who are all deep in debt, means that we're facing similar problems." To the well-known troubles of France Telecom and Deutsche Telekom, add the pains at tech giant Alcatel. Or the fiasco at media...

Author: /time Magazine | Title: Down And Out | 7/14/2002 | See Source »

...over everything from Vietnam to Watergate. This too is a summer not of one scandal but of many-the Roman Catholic Church, and the FBI, and Major League ballplayers on steroids. Comedians joke that Arthur Andersen tries to cover up corruption by rotating accountants from diocese to diocese, that Enron and K Mart will merge so Martha Stewart can design the prison uniforms. In each case it is the mighty who have fallen. The church scandal was as much about complicit Cardinals as about wayward priests; the FBI field agents did their job, but their careerist bosses stuffed...

Author: /time Magazine | Title: Summer of Mistrust | 7/14/2002 | See Source »

...while for the blow to sink in. a market crash doesn't always come in a day. It can sneak up, slow and surreal, and you can think you survived it only to find it has barely begun. Now each week brings a new shudder and crack-first Enron and Arthur Anderson, then WorldCom, Adelphia, Xerox and the trials of Martha Stewart. Most Americans-72% in the TIME/CNN poll-fear that they see not a few isolated cases but a pattern of deception by a large number of companies. In one survey, more than half of corporate chief financial officers...

Author: /time Magazine | Title: Summer of Mistrust | 7/14/2002 | See Source »

...recall a feeling of outrage like there's been lately with these stories. And then you see the pictures of the homes these guys are building ..." It's a short road from disgust to despair: What do I do with my money now? Business schools are adding courses on Enron to their fall lineup; a new book, How Companies Lie, promises to help investors see through the smoke and break the mirrors of corporate accounting. People say they have stopped investing and play poker instead; it's a safer bet. The Wall Street Journal profiles the barber who has given...

Author: /time Magazine | Title: Summer of Mistrust | 7/14/2002 | See Source »

...practice he now wants to ban. In 1989 Harken concealed losses by selling most of a subsidiary to an off-the-books entity controlled by company insiders. Bush was on the audit committee, which, at least in theory, approved the deal. It's the same tactic used by Enron-on a massive, more pernicious scale-before it imploded...

Author: /time Magazine | Title: The Rap on Bush and Cheney | 7/14/2002 | See Source »

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