Berkshire’s Munger: Subprime Makes “Enron Look Like A Tea Party”
Professor Joe Grundfest is referenced in a Wall Street Journal Law Blog post about Vice President of Berkshire Hathaway Charles Munger and the current credit crisis:
Munger, 84, told shareholders that the current credit crisis is worse than the market disruptions triggered by Enron’s bankruptcy earlier this decade. After Enron collapsed, U.S. legislators passed the Sarbanes-Oxley Act to try to prevent such massive frauds rocking markets in the future, Munger said. “We now know they were shooting at an elephant with a pea shooter. We have convulsions now that make Enron look like a tea party.” What does that mean for potential regulatory overhaul? According to Munger, the credit crunch will produce more changes in regulations that “won’t work for everybody.”
Although recently more securities class actions have been filed, Professor Joseph A. Grundfest is quoted giving a reason for the drop in the number of securities class actions in 2007:
According to Joseph Grundfest, the director of the Securities Class Action Clearinghouse, increased enforcement activity by the SEC and DOJ, and a strong stock market accounted for the drop.