Comment on ''Goverance, Supervision and Market Discipline:Lessons From Enron"

J.R. Varma has written a well-researched article in the Journal of Indian School of Political Economy, Vol. 14,No. 4, October-December, 2002, on the spate of recent scams that have rocked financial markets round the world. He digs deep into all details of what has caused those problems, and strings together what appears a plausible treatise on what has gone wrong, and possible safeguards to prevent these episodes from recurring. He meticulously examines the players and their behaviour, the laws and their limitations, the structures and their inadequacies, and the processes and their inefficacies. I would like to focus on the issues relating to credit rating discipline, that this article raises.