BW Online | December 13, 2002 | Wall Street: How Hard a Wrist Slap?

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DECEMBER 13, 2002

READER SURVEY

Wall Street: How Hard a Wrist Slap?

For breaches of investor trust at major financial firms, what kinds of penalties do you think are appropriate?

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Regulators and law-enforcement officials are now struggling to hammer out penalties that Wall Street firms will have to pay to compensate for past indiscretions, such as issuing misleading research reports or having their analysts recommend stocks to investors that the analysts knew weren't good bets (see BW Online, 12/16/02, "Wall Street's Fine Mess"). What punishment do you think would fit the crime? That's the subject of this BusinessWeek Online Reader Survey, which as always is unscientific, since anyone who wishes to can participate.

Do you think the appropriate penalty for a firm that consciously misleads investors should include:

	Fines
	Jail time for those responsible
	Both
	Neither
	Not sure

In such an instance, should the fines levied be:

	Negotiated by regulators and the companies that cheated
	Based on the amount of money investors lost as a result of the misleading information
	Assessed against individual wrongdoers, but not against their companies
	Don't know

How large a fine do you think is appropriate for big-name Wall Street firms that misled tens of thousands of investors?

	Less than $100 million
	$100 million to $500 million
	$500 million to $1 billion
	More than $1 billion
	Not sure

Should regulators avoid levying fines so high that they leave the firms financially vulnerable?

	No
	Yes
	Not sure

Do you think hefty fines against Wall Street firms will deter them from engaging in unethical practices in the future?

	Yes
	No
	Not sure

When you look for a broker or investment bank, do you take into account its history of wrongdoing and fines?

	No
	Yes
	Not sure

Based on what you've read in the news, which of the following companies do you think did the most harm to investors in 2002:

	Merrill Lynch
	Enron
	Citigroup
	WorldCom
	Tyco
	Adelphia Communications

Until now, how good a job do you think federal and state regulators have done at keeping brokerages and investment banks on the straight and narrow?

	Very good
	Reasonably good
	Reasonably bad
	Very bad
	Not sure

If you would like to be notified by e-mail of the results of this poll, please enter your e-mail address below.
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