Reputation matters-a lot!

In light of the recent Tyco trial and this week's sentencing of the Rigases, it might behoove us to remember that the market, and not the SEC or the courts, is the real disciplinarian. The market penalty (as measured by the drop in value of the firm) is much greater than the out of pocket fine imposed by the legal and regulatory system.Until recently we have only had antectodal evidence of this (