The stock market of the late 1990 s and early 2000 s represented a period of irrational exuberance. Investors invested as they never had, egged on by analysts who could say no evil of the companies they were to evaluate. For example, Citigroup is the parent company of Salomon Smith Barney, an investment banker and broker whose star telecommunications analyst, Jack Grubman, was perhaps WorldCom's biggest cheerleader. \({ }^{20}\) There was a glowing quote from Mr. Grubman included in its 1997 annual report, which was still posted on its website through July 2002, "If one were to find comparables to WorldCom ... the list would be very short and would include the likes of Merck, Home Depot, Walmart, Coke, Microsoft, Gillette and Disney." \({ }^{21}\) The sycophantism of Mr. Grubman is difficult to describe because it seems almost parody, as the WorldCom ending is now known. Mr. Grubman introduced Mr. Ebbers at analyst meetings as "the smartest guy in the industry."22 It was not until the stock had lost \(90 \%\) of its value, and just six weeks before its collapse, that Mr. Grubman issued a negative recommendation on WorldCom. \({ }^{23} \mathrm{Mr}\). Grubman was free with his negative recommendations on other telecom companies. And Salomon would earn \(\$ 21\) million in fees if the WorldCom-Sprint merger were approved in 1999. He wrote, "We do not think any other telco will be as fully integrated and growth-oriented as this combination." \({ }^{24} \mathrm{Mr}\). Grubman attended WorldCom board meetings and offered advice. \({ }^{25}\)...................

 Discussion Questions
1. Were there conflicts of interest?
2. What personal insights do you gain from Mr. Grubman's e-mails and conduct? What elements can be added to your credo from this case?
3. All analysts were participating in the same types of favors and quid pro quo as Grubman. Does industry practice control ethics?
4. Then-Attorney General Eliot Spitzer (now exgovernor of New York) pursued the analysts and the investment houses for their lack of independence. Although they all settled the cases brought against them, what types of criminal conduct could they be charged with?
5. Mr. Spitzer found the buik of his evidence for his cases in candid e-mails the analysts sent describing the eventual collapse of these companies even as their face-to-face evaluations of companies were most positive. Does he have the right to view their e-mails?