Ishmael
Literotica Guru
- Joined
- Nov 24, 2001
- Posts
- 84,005
of obstruction of justice.
A jury returned the verdict after 72 hours of deliberation.
This is the pertinent article:
http://webcenter.newssearch.netscape.com/aolns_display.adp?key=200206151128000192161_aolns.src
This is the first blow struck by the adminstrations justice dept. in the attempt to unravel the Enron scandal.
A couple of note worthy points here;
Aurther Anderson is one of many independent auditing firms that are licensed to audit, and certify, the books of publically traded corporations. They, and others like them, are charged with being the 'watch dogs' that notify the SEC and the public when a company tries to 'cook the books'. In this case, Aurther Anderson acted in concert with Enron to present a false impression to investors. The result of the verdict will be that Anderson will be fined, and decertified. The decertification will probably lead to Anderson's collapse and bankruptcy. This is good news. It will put the other 'watch dogs' on alert that fictionalizing their clients books will lead to their own business failure. And this in turn will lead to more conservative corporate valuations. This is good for the investment community. Anyone who invests, or is thinking about investing, will now be able to do so with a much higher confidence in the reported financials.
The second point is that the Bush administration is going after these people with a vengence. They are not molly coddling any of these companies. They are taking them to court and getting convictions. There are some that may say, "to little, to late". However, when a ceritfied auditor acts in collusion with the client being audited there is little chance that the conspiracy would have been caught before the house of cards came tumbling down. The fact that the justice department is acting with such speed is an indecation of how seriously the adminstration is taking this and how much they see this as a keystone in the return of investor confidence to the market.
Ishmael
A jury returned the verdict after 72 hours of deliberation.
This is the pertinent article:
http://webcenter.newssearch.netscape.com/aolns_display.adp?key=200206151128000192161_aolns.src
This is the first blow struck by the adminstrations justice dept. in the attempt to unravel the Enron scandal.
A couple of note worthy points here;
Aurther Anderson is one of many independent auditing firms that are licensed to audit, and certify, the books of publically traded corporations. They, and others like them, are charged with being the 'watch dogs' that notify the SEC and the public when a company tries to 'cook the books'. In this case, Aurther Anderson acted in concert with Enron to present a false impression to investors. The result of the verdict will be that Anderson will be fined, and decertified. The decertification will probably lead to Anderson's collapse and bankruptcy. This is good news. It will put the other 'watch dogs' on alert that fictionalizing their clients books will lead to their own business failure. And this in turn will lead to more conservative corporate valuations. This is good for the investment community. Anyone who invests, or is thinking about investing, will now be able to do so with a much higher confidence in the reported financials.
The second point is that the Bush administration is going after these people with a vengence. They are not molly coddling any of these companies. They are taking them to court and getting convictions. There are some that may say, "to little, to late". However, when a ceritfied auditor acts in collusion with the client being audited there is little chance that the conspiracy would have been caught before the house of cards came tumbling down. The fact that the justice department is acting with such speed is an indecation of how seriously the adminstration is taking this and how much they see this as a keystone in the return of investor confidence to the market.
Ishmael
