Man Without Qualities

Friday, July 26, 2002

A Nice Gesture, Mr. Harrison, But Who's Your Lawyer?

According to the New York Times:

[S]enior executives of ... J. P. Morgan Chase, who told investors and reporters on Wednesday that their employees had done nothing wrong in helping Enron set up complicated financing vehicles that kept large amounts of debt off the company's balance sheet. They also pledged to spend their own money on J. P. Morgan's depressed stock: five of them bought a total of 85,000 shares, according to Kristen Lemkau, a spokeswoman.

Considering the nature of the accusations against Morgan, how likely is it that the purchase of 85,000 shares of Morgan stock by highly placed insiders was NOT predicated on material information not available to the general public. The purchase could also be construed as a device deliberately intended to manipulate the price of Morgan stock. In fact, wasn't that the actual intent?

Where the heck are the lawyers in all this bank mess?

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