Enron/WorldCom/Xerox scandals

[fyxxer32]

I am not a CPA , but I listen on the news about these huge corporations " misreporting" their earnings, claiming to make more than they are etc. What is the cause of all this? Is it looser SEC regulations? Are the laws concerning audits changed so these guys can skirt the law? Or is it because the accountants that are supposed to be a check and balance are in bed with the CEOs? What the heck is going on?

[RayH]

If something isn't done quickly about all these frauders, the country is going to be in deep weeds. If people get scared to invest in the U.S., the money is going to go overseas.

A lot of overseas money is invested in the U.S. That money may stay overseas. Also, a lot of domestic money may follow. Remember, many "US" corporations are now reincorporating in other parts of the world! Stanley Tools is no longer an American corporation for one!

It seems like these frauders are doing what Al Qiada can't do...crush the US economy!

[Knothead]

AFAIK, the motivating factor for misrepresenting the company's gross earnings is to report these figures to the stockholders, to keep their $$ invested in the company.

Kinda like if your business partner was telling you about how good the company's doing, when in reality, he's stealing your bucks and flushing 'em into a Cayman Islands account, where you'll never see it again.

RayH is right. We need to deal with these criminals, and harshly. They are eating the core of our enonomy right out from under us.

I recommend putting their heads in a pike, then putting that pike in front of the courts, where all the honest citizens will be invited to a festival of singing and dancing. Of course that's just IMO.

[no1_vern]

The criminals(who took the money)? or the administrators(who mismanaged AND took great amounts of money for doing so)? or the watchdogs(anderson)who turned a blind eye?

[Warthog]

Yeah I bought a Stanley wrench set, assuming it would be made in the USA (I had noticed the significant price different between that and Craftsmen).....nope, Taiwan. I suppose that is not as bad as Malaysia or China, but still.....

[RayH]

I'd line a WHOLE BUNCH of culprits up against the wall.

[pickel]

That would be TOO quick.... Give to the Commanche Indians

[desmocat]

Nahh, rusty potato peelers all around!

[Redwolf]

I say give Ebbers to Anderson and let them shred HIM. I LOST SO MUCH MONEY in Worldcomm. What a scam >

[kenyg]

Knothead - right on brother. 17,000 Worldcom employees were/or are about to be laid off. All due to their employers dishonest accounting practices -

These folks should do REAL jail time, not cushy white collar pens - send them to someplace like folsom, rikers island, Rahway... and put them in general population -

I hate this sh*t - there is a ripple effect in the economy as well - lets say I'm a local vendor - (even national) - and Enron or Worldcom is one of my big accounts.... ouch... or, I'm worldcom, and I provide hi tech, well paying jobs in Mississippi (where 300 were laid off last week).. ouch

criminals!