"And, then, all of a sudden, the bottom fell out of these companies. it's a reckoning." The question becomes: are there any honest and ethical business executives anywhere?

Let's take a look. Former corporate CEOs like Richard Fuld of Lehman Brothers, faced down questions and cameras on Capitol Hill; former executives of the insurance giant AIG were also questioned. One topic of discussion: the fancy retreat hosted by AIG after an $85 billion bailout. Also facing scrutiny are the bosses of the Big Three auto companies, caught by ABC's Brian Ross flying private jets to Washington to beg for bailout money. (Kristin Pisarcik and Gail Deutsch)

Is it any wonder than schemes like the Madoff ponzi debacle, in such an environment, happen so often?

Probably the two most common reasons upper managers commit fraud are greed and need. Both greed and need can come into play on a personal level and on a corporate level. Those who think the perpetrators of fraud are inherently bad are refusing to confront the issue that good people can turn bad. We trust people who seem trustworthy. But we have to accept that they can change. Many executives who commit fraud were at one time considered rising stars with good values. (Coenen)

There are many motivations and factors that go into the decision to commit fraud, and one can appreciate that "greed" and "need" are only two small pieces of the puzzle. Nonetheless, they can be primary motivators for upper-level executives to commit fraud within corporations, so they must be taken seriously if we are to have any chance at preventing fraud. (Coenen)

The Enron scandal demonstrated how money, power, and the accompanying greed can grow exponentially once we allow ourselves to start down that slippery...

Our judgment becomes impaired, ethics compromised, and our management style blinded with ambition.
Greed, power, and the love of money have ruined many business owners -- and their companies. Blinded by their lust for more power and money, they self-destruct, leaving behind insecure children and unhappy spouses, not to mention the poor health they experience from the stress of never reaching their unattainable goals. (Azar)

Bibliography

Chris Dettro 2. "Pyramid, Ponzi schemes disguised as valid investment opportunities." The State

Journal-Register 29 December 2008.

Azar, Joseph. The Azar Newsletter. 11 October 2008. 30 January 2009 http://theazarnewsletter.blogspot.com/2008/10/greed-power-and-love-of-money-10-11-08.html.

Bhushan, Amarendra. "Reason behind $50B Bernard Madoff Ponzi Scheme." 15 December 2008. CEO World Magazine. 30 January 2009 http://www.ceoworld.biz/corporate/home.php.

Coenen, Tracy. Business Fraud Focus. 21 November 2007. 30 January 2009 http://www.allbusiness.com/accounting/fraud/4969123-1.html.

Dettro, Chris. "Pyramid, Ponzi schemes disguised as valid investment opportunities." The State

Journal-Register 23 December 2008.

Gimein, Mark. "The Madoff Dilemma." 15 December 2008. The Big Money. 30 January 2009.

Kristin Pisarcik and Gail Deutsch. "Greed Gone Wild in 2008." 2008 26 December. abc news. 30

January 2009 http://abcnews.go.com/2020/YearInReview/Story?id=6524126&page=1.

Scheer, David. "SEC Said to Examine More Ponzi Schemes After Madoff." 2 January 2009.

Bloomberg.com. 30 January 2009 http://www.bloomberg.com/apps/news?pid=20601087&sid=aMnYtV9XnYKM&refer=home.