NEW YORK (CNN) - If you're interested in not only cleaning up corporate America and these markets, but also seeing justice done... you've got to give NY Attorney General Eliot Spitzer a lot of credit. Spitzer went after Wall Street analysts, and Merrill Lynch, and won a $100 million settlement.
And today Spitzer went after Salomon Smith Barney, saying that Salomon bought the investment banking business of a number of telecommunications companies by giving their CEOs access to rich IPO deals. The AG sued WorldCom's Bernie Ebbers, Qwest's Joe Nacchio, Metromedia Fiber's Stephen Garofalo, and McLeod USA's Clark McLeod, alleging they failed to disclose their underwriting relationship with Salomon Smith Barney... that the executives made almost 30 million dollars off the IPOs, while their shareholders were the ultimate victims. And Spitzer wants that money and he wants it given back to the shareholders of those companies.
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And I hope that Attorney General Spitzer, the other attorneys general around the country, the SEC and the Justice Department will vigorously go after every dollar that the corporate gluttons have so greedily taken from their companies and those who did business with them. It's called disgorgement... the perfect response to the gluttony of those who ripped off their shareholders over the past five years. And it's justice.
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