Execs Have a Lot Of Explaining to Do: Where are the mea culpas?

Jack Grubman, the telecom analyst, told a reporter from CNBC, "stop harassing me" when asked about WorldCom.

After getting paid tens of millions a year for foisting fraud-ridden telecom stocks on unsuspecting investors, you should have the decency to answer any question anyone wants to ask. And while you're at it, you should apologize for letting greed blind you.

I would also like to hear a round of mea culpas from corporate execs who absconded with billions in shareholders' money.

I remember watching Jeff Skilling, the control freak who ran Enron, acting like Sgt. Schultz from Hogan's Heroes: "I know nothing."

Don't insult our intelligence and yours. Any self-respecting McKinsey consultant and Harvard grad had to know some of the details. I would've respected you more if you'd followed Willie Sutton's lead and said you robbed corporations, "because that's where the money is."

In all the fraud and bankruptcies, I've yet to hear an apology from any corporate executive who walked away with millions. In Japan, these dishonored people would have fallen on their swords. In this country, they fly away on their private jets.

Most of these people didn't start out to be criminals. The game started innocently. Momentum investors were willing to pay a premium for companies that could grow earnings consistently and still surprise on the upside. Since most companies manage their earnings, the message was simple. Higher earnings would create a win for everyone.

At first, the accounting gimmicks were relatively minor. After all, it was just a few cents here and there. But each year, the companies had to become more aggressive. They were starting in the hole from the previous year and had committed to growing faster than they could.

CEOs could fess up and stop playing the game. But when they did, the price of their stock would plunge and they might get fired. It was easier to bend the rules. Many turned to making acquisitions as a way of boosting earnings. Acquisitions made it harder for investors to compare results and offered additional loopholes.

For many CEOs, accounting games became a drug. They had millions in bonuses and tens of millions in options. They had employees who were dependent on them. Besides, they convinced themselves their competitors were playing the same game. They couldn't stop. Like junkies, they just needed another accounting fix.

It was the same for analysts and accountants. Analysts looked at competitors like Grubman pulling down tens of millions, while they sought the truth. The message was clear. Shill for winners and get rich, or push the losers and get fired. Auditors had the same choice. Help surging companies find the loopholes, or look for a new job.

For each person, there had to be one moment when he or she realized they were breaking, not bending the rules. They conned themselves that they were fostering the greater good. Shareholders validated their actions with even higher multiples.

Now it's time for some of them to step forward and apologize for destroying their corporations and the trust of the investing public. Many may never be indicted, but they still owe an apology to everyone who trusted them. I am sure the cable networks, where many gained fame, would be pleased to provide them with a forum.

As for Martha Stewart, I don't know if she broke the law, but I do know her broker knew something was up, and she profited from her actions. Instead of proclaiming her innocence while chopping vegetables, I would prefer to see Martha look into Camera 1 and say, "I'm sorry."

Peter Siris (guerrillainvesting@hotmail.com), a New York fund manager, is the author of "Guerrilla Investing."

......and the Clinton Legacy lives on. Siris would have been more plausible had he pinpointed the Clinton Reign of Terror as the font from which all of the Wall St chicanery flowed.

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