Profile: Another CEO charged with unethical behavior; Americans wary of investing amidst confidence crisis

TOM BROKAW, anchor: NBC News IN DEPTH tonight. The growing crisis of confidence in corporate America. It started with Enron and it goes on every week. Today, Sam Waksal was indicted for insider trading. He encouraged family members to sell millions of dollars worth of stock in his company ImClone when he learned, before the public, the FDA would not approve its cancer treatment. It's all adding up. Accounting scandals, falling stock prices and giant CEO payoffs. A nasty combination weighing heavily on Americans' trust and on Wall Street as well. NBC's Anne Thompson IN DEPTH.

ANNE THOMPSON reporting:

Sam Waksal...

Unidentified Reporter:

Did you tell relatives to sell the stock before...

THOMPSON: ...this week's poster boy for bad executive behavior joining Dennis Kozlowski, former Tyco CEO, indicted for sales tax evasion. Also under the microscope, John Rigas, founder of cable TV giant Adelphia. His family received almost $2 billion in loans from the company. And the biggest debacle of all, Ken Lay and Enron. This modern-day rogues' gallery made millions of dollars while leading their companies to near-financial ruin or worse.

Mr. FRANK GLASSNER (Compensation Design Group, CEO): I don't think that there's any word for it but "outrageous." I don't know that anyone really paid a bonus to the captain of the Titanic for running the ship into the iceberg, did they?

THOMPSON: But in some cases, failing CEOs were paid millions more to leave. Chuck Conaway led Kmart to bankruptcy and then was given $9 million to go. Legendary financier Felix Rohatyn says abuses are eroding the very foundation of Wall Street.

Mr. FELIX ROHATYN: It either has lost or is just about to lose the trust of the people that it--that it relies on, namely the investors in--in--in American stocks.

THOMPSON: The market's integrity battered by accounting and analyst scandals. So devastating, a new NBC/Wall Street Journal poll finds 57 percent of Americans don't have confidence in information put out by major brokerage firms and corporations.

The implications of this breach of trust go far beyond Wall Street. Financial experts say this could ripple through the economy affecting everything from the dollar's value abroad to American purchasing power here at home.

Ms. MARY FARRELL (UBS PaineWebber Investment Strategist): What we are seeing is a lot of money sitting on the sidelines in money market funds waiting to see some resolution of this crisis of confidence.

THOMPSON: Rohatyn says confidence will return when respect for the rules does.

Mr. ROHATYN: Ethical behavior is--is not only a good thing in itself, but it's also good business.

THOMPSON: Tonight another high-flying CEO in trouble as investors continue to wonder, `Who do you trust?' Anne Thompson, NBC News, New York.