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WHAT ENRON/WORLDCOM REALLY MEANS FOR DIRECTORS

News that outside directors agreed to pay a combined $33 million in out-of-pocket legal settlements for their roles in the collapses of Enron and WorldCom has set off a buzz of concern in director circles, and with good reason. That presumably smart people with good legal advice decided they were better off paying than fighting shatters what was once an article of faith: that, while they can and will get sued, directors would never have to open their own wallets for lapses that occur on their watches.

Do directors -particularly bank directors-have anything to fret about?

The legal experts are quick to note that Enron and WorldCom were exceptions, and they're probably right. In both cases, ...

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