WorldCom lied about, um, restates earnings figures for 2001
...yes, campers, that's all of 2001 and one quarter of 2002, disguising $3.8 billion in expenses. The company now faces bankruptcy. Predictably, Wall Street took a big hit when trading opened, falling to post-September 11 levels and effectively wiping out subsequent gains. This WaPo story describes how corporate shenanigans injure not only CEOs (or don't injure them at all) or stockholders but can affect the economy at large.
Update: Although Wall Street opened with a dip yesterday, stocks recovered by the close and seem to be holding steady so far today (June 27), apparently due in part to encouraging news of growth in America's GDP.