The Lippo Bank scandal alone did not make Herwidayatmo, chairman of the Capital Market Supervisory Board (Bapepam) feel outraged. It was the accusation that he was overly soft on his old friend James T. Riady, Lippo’s boss. “I'm friendly to everyone,” he maintained.

Whatever his connections, the stock exchange was quite “lively” under his supervision. A few cases of massive stock manipulation managed to upset the