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Corporate Scandals Continue to Hurt Already-Recessed Economy.
Byline: Susan Strother Clarke
Jun. 30--Corporate scandal could be the sucker punch that sends the economy reeling.
The business bombshells that have rocked Wall Street could slow the nation's recovery and shove the country back into recession, some experts fear.
The latest disaster occurred last week when WorldCom Inc., the once high-flying telecommunications giant, stunned the markets by announcing it hid losses by misstating $3.8 billion in expenses.
Most troubling are the ripple effects of disclosures: The nation's financial health is closely tied to stocks. U.S. households already have lost a collective $4 trillion in the two-year bear market, with much of that incurred by average Americans with 401(k)s and other retirement plans.
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