---
title: What makes the SSB-WorldCom deals illegal
date: "2002-10-03T12:00:00Z"
categories:
  - links
wp_id: 1114
description: Understand why the Salomon Smith Barney deals with WorldCom were illegal. While many business perks resemble bribes, these IPO spinning arrangements were distinct because of their massive scale and the misuse of shareholder capital.
keywords: [salomon smith barney, worldcom, ipo spinning, commercial bribery, corporate ethics, fiduciary duty]
---

Salomon Smith Barney sold the CEO of WorldCom lots of IPO shares at a low price. The CEO made lots of money. Technically, that's a bribe to your customer. But then, so is every free offer, or cross-sale. [What makes the SSB-WorldCom deals illegal](http://www.newyorker.com/talk/content/?021007ta_talk_surowiecki), this article argues, is that they're so BIG, and they're made of OTHER people's money.