Seven Signs of Fraud--How Do You Know Your Stock Isn't The Next Bear Stearns?

Last month, many investors were again caught unaware when Bear Stearns, the fifth-largest U.S. investment bank, and one of the street's blue bloods, announced that it was being rescued by JP Morgan Chase and the Federal Reserve Bank of New York.

Stunned investors couldn't believe it! It was the first time since the Great Depression that the Fed has stepped in to give credit to a non-bank to keep it on its feet.

After being a force to reckon with for more than 80 years on Wall Street, the bank was a few days from bankruptcy, leaving many folks shaking their heads and asking what the heck happened?

This debacle is simply another domino in a long list of failed companies that allowed greed to get in the way of good sense. Enron, Long Term Capital, WorldCom, Tyco (and now, Bear Stearns) were all poster children for executives to find new ways to grab as much money as they could with no regard to the ultimate consequences for their shareholders or their more than 15,000 employees.

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