Corporate greed: when corporate leaders steal money and hide company losses, many people are hurt. (Economy).For years, Andrew S. Fastow was flying high. As the chief financial officer at Enron Enron A U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues, which, at the height of the scandal, made the firm become the seventh , an energy-trading, company, Fastow made millions of dollars. But Fastow isn't is·n't Contraction of is not. isn't is not isn't be enjoying the high life any longer. Last month, he was brought to court in handcuffs hand·cuff n. A restraining device consisting of a pair of strong, connected hoops that can be tightened and locked about the wrists and used on one or both arms of a prisoner in custody; a manacle. Often used in the plural. tr.v. , and was charged with lying about Enron's financial health. Fastow and other executives hid $1 billion in company debt, and made Enron appear much better off than it really was. When Enron's losses were revealed last December, the company went bankrupt BANKRUPT. A person who has done, or suffered some act to be done, which is by law declared an act of bankruptcy; in such case he may be declared a bankrupt. 2. It is proper to notice that there is much difference between a bankrupt and an insolvent. (unable to pay its debts). Enron stock became almost worthless, and millions of investors lost their savings. It was one of the biggest bankruptcies in history Losing Jobs and Savings More than 20 major corporations, from Global Crossing to Tyco to WorldCom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. , have also engaged in questionable accounting practices. And far too many executives have been accused of fraud, or "cooking the books," for their own gain. Corporate fraud has hurt millions of Americans. When a company declares bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most employees often lose their jobs. And the loss of jobs affects smaller businesses in the community. But that's not all. Today, more than half of all Americans own stock. Because stock in these bankrupt companies has lost almost all of its value, many people have suffered huge losses. President George W. Bush says he is determined to prevent more companies from fooling the public. "My administration," he warned business leaders, "will do everything in our power to end the days of cooking the books, shading See Phong shading, Gouraud shading, flat shading and programmable shading. the truth, and breaking our laws." Last summer, the President signed a law to fight such crimes. It increases the penalties for corporate abuse and requires company executives to vouch (guarantee) that company financial records are correct. Most corporate leaders aren't breaking the law, and most companies have accurately reported their finances to the public. But the size and depth of recent offenses have sent shock waves through the U.S. economy Still, President Bush says that "our economy is fundamentally strong." |
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