New Enron Essay

654 WordsOct 23, 20123 Pages
Former head of Enron Jeffrey Skilling was sentenced. However, experts believe that it will not bring anything new to the lives of American companies. The scandal surrounding Enron has already changed the U.S. corporate world. Recall that the largest corporate scandal in U.S. history broke out in December 2001. Energy Corporation Enron, at the time the seventh largest in the United States, declared bankruptcy after it became aware of the machinations of its management to reporting. It turned out that the company has been holding the debts of 40 billion dollars and four years of overstated profits, seeking to support the growth in stock prices. In the bankruptcy of Enron five thousand employees lost their jobs and at least $ 1 billion in retirement savings. And the greatest shock was the fact that, having asked officers of the corporation temporarily hold shares, as the company is in crisis, Kenneth Lay and Jeffrey Skilling were received from sale of its stakes respectively 220 million and 150 million "The sentence, in fact, will change little, it is only the final point, and the main consequences of the scandal American business has experienced firsthand, "- said in an interview with RBC daily expert The Economist Intelligence Unit (EIU), Matthew Sherwood. The scandal surrounding Enron had a great influence on the activities of business organizations in the USA. In 2002, a law was passed Sarbanes-Oxley Act, which introduced criminal liability of the manager and treasurer of the company for providing false financial documents. According to Matthew Sherwood, this is the most important consequence of the Enron scandal for American business. However, regulators have conducted a large-scale investigation into the activities of financial corporations from Wall Street. Even the EU was forced to amend the law on market abuse, to extend the range of data considered

More about New Enron Essay

Open Document