U.S. District Judge Sim Lake re-sentenced former Enron CEO Jeff Skilling to 14 years in prison yesterday. That was the most lenient sentence that Judge Lake could impose under the deal that Skilling cut with the Department of Justice without risking a government appeal of the sentence. Skilling has already served almost seven years in prison and that he has to spend another day in prison — much less the four more years that Judge Lake’s re-sentence imposes — is highly unjust. In the letter below that I sent a couple of weeks before Skilling’s resentencing hearing, I explain to Judge Lake why I believe that Skilling’s plight is a grave injustice and why releasing him would actually have a beneficial impact on educating business markets.
John Geanakoplos, the James Tobin Professor of Economics at Yale University, discusses the perils of leverage in regard to the current global economic situation.