This paper examines the role of political corruption in the BW Resources price manipulation scandal, the nature of institutions within the stock exchange, and the state of market regulation. The BW scandal provides a fascinating study of how political corruption during the Estrada administration underwent a significant transformation in both magnitude and scope. Gains acquired through traditional methods of political corruption grants of franchises, government contracts, and behest loans- were leveraged in the securities market for greater profit, albeit through fraud. The use of state-controlled financial institutions to abet this process marked another milestone in the history of corruption in the Philippines.