Institutions Asleep at the Wheel

This story is part of a special series by TheStreet.com investigating shareholders' reaction to corporate corruption on Wall Street. Click here to see a full listing of stories.

Almost nobody on Wall Street escaped blame in the wake of the recent season of corruption. But how many have complained about the true guardians of investor wealth -- institutional shareholders?

These supposed advocates of shareholder rights control huge sums of other people's money but were no more effective at stopping the carnage on Wall Street than the smallest of individual holders.

"As long as the piper gets paid and it appears as if everything's OK, very few were asking the tough questions," said Bill Smith, a professor of management at Towson University. "That's a lesson for us all."

Where Were They?

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