Free To Scheme You And Me

Posted by Andrew Price

The Enron guys are behind bars but justice is only half-served. Back in the early aughts, when Enron was reporting absurd numbers, Wall Street banks bought their story (literally) with few questions asked and sank numerous investment funds and pension plans in the process. A suit filed to hold those banks accountable for so-called "scheme liability" was dismissed by the Supreme Court.

It looks to us like we're telling banks it's not their responsibility to scrutinize suspicious deals: victory for Byzantine financial schemes everywhere.