New Laws Won't Stop the Next Enron

Former SEC Chairman David Ruder says lawmakers should leave the cleanup to existing accounting and securities watchdogs

David S. Ruder knows a financial scandal when he sees one. In the late 1980s, when he was chairman of the Securities & Exchange Commission, Ruder oversaw the investigation and prosecution of junk-bond kingpin Michael Milken of now-defunct Drexel Burnham Lambert as well as rogue financier Ivan Boesky. But Ruder, 72, says none of the cases that the SEC undertook during his two-year tenure measures up to Enron's collapse, which the SEC is only starting to piece together. "We did not investigate a matter of this significance," he notes.

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