Surprises in Store for 2004

18. Freddie Mac's (FRE Quote) former executives are jailed, precipitating more restrictive rules governing derivative accounting at government-sponsored agencies and at other financial institutions. Rudy Giuliani is appointed FRE's chairman.

19. Bernie Ebbers, Dennis Kozlowski and Scott Sullivan receive maximum-length jail sentences.

20. Disney's (DIS Quote) Michael Eisner is replaced by an executive at Procter & Gamble (PG Quote). Federal Reserve Chairman Alan Greenspan resigns owing to poor health.

21. The New York Stock Exchange, in a stunning reversal , goes fully electronic by year end. John Reed remains as chairman and orchestrates the transformation. Goldman Sachs (GS Quote) takes a $6.7 billion goodwill impairment charge off its 2000 acquisition of Spear Leeds, and LaBranche (LAB Quote) liquidates its assets.

22. Henry Blodgett is hired as a research analyst by a second-tier Wall Street firm.

23. There are no major terrorist acts in the U.S. and limited disturbances outside our country during the year.