Although its core business were still in the distribution of energy, but the significant growth that the company made were from the other businesses. The company reported of 101 billion revenue in 2000, employed approximately 21,000 employees in 2001 and become the 7th largest U.S. company. The Fortune magazine also appointed Enron as “America’s Most Innovative Company” for six consecutive years in the row. What happened in Enron? In a very short amount of time, the company which still stated to have US$ 101 billion earnings in 2001, suddenly shocked the world financial economy by declared its bankruptcy.
Toll Brothers Inc., the nation’s largest luxury home builder, benefited from the housing bubble that collapsed in 2007. Now, because of an expanded tax break in the proposed federal budget, the nation’s 13 largest builders, including Toll Brothers, could collect billions of dollars more by offsetting recent tax losses with taxable profits earned in previous years.  Toll Brothers and other big home builders stand to collect $2.4 billion in tax refunds this year under existing law.  The company has not treated its shareholders as kindly. For starters, the term “pay for performance” takes on a whole new meaning at the Horsham, Pa.-based company, whose stock plummeted more than 70 percent from its all-time high of $58.25 in July 2005 to $17 on March 20, 2009.
Enron quickly dominates the energy market and adopts a new accounting method. The smartest guys in the room fooled us for a while but before long Enron was being blamed for massive blackouts and price hikes in California. In lieu of their pending demise Lay announces that Enron stock is an incredible deal and that the company was doing great. In October 2001, the Securities Exchange Commission opened an inquiry into Enron’s many limited partnerships. Lay continues to communicate lies to Enron employees as well as the general public.
However, by November of 2001 Enron’s stock had plunged to $1.00 per share. On December 2nd of that year Enron claimed bankruptcy and laid off thousands of employees. Not only did the company claim bankruptcy, but Lay, Skilling, and Fastow were facing numerous legal charges. Ultimately, Lay would die of a heart attack prior to being sentenced and Skilling would be sentenced to serve more than 20 years in prison. Fastow ended up serving as a witness for the prosecutor in the case against Enron and received a reduced sentence of only ten years.
On June 26th of 2002 the truth behind Ebbers and WorldCom went public. Ebber’s was convicted of an 11 billion dollar accounting fraud at telecom. On March 15th of 2005 Bernie Ebber’s ended up being guilty of conspiracy and security fraud. Ebber’s knew right from wrong and he ended up causing the biggest bankruptcy in history. The sympathy lies within the victims for the loss of 30 million dollars all together.
By 1990 Acer was the 13th-largest PC maker in the world with revenue of US $ 1 billion. The following year due to a slowdown in the economy and overcapacity, Acer recorded its first loss (US$22.7 million after taxes) and cut 400 jobs in Taiwan. Despite the ensuing upheaval and ISO 9000 certification was obtained in 1992. The following year, Acer recorded sales of US$ 1.7B by 1994 was the world's seventh-largest PC brand. In 1995, it exceeded expectations with revenues of US $ 5.8B by year end.
By the time the Merrill acquisition was announced on Monday, September 15, the stock market crash was well underway. The S&P 500 index was down 24 percent from its October 2007 historic highs. A few weeks later, in October 2008, the equity market fell off the cliff and the S&P 500 index was down 43 percent from the year before. The stock market crash reflected broader economic problems such as the crash of the housing market, disturbances in the credit markets, global recession and increasing unemployment. According to Ben Bernanke, a prominent scholar of the Great Depression and current Chairman of the Federal Reserve, “the financial shocks that hit the global economy in September and October were the worst since the 1930s.
That it would be smoother for everyone,” Ramsay said in his first interview since his business was plunged into chaos and his family-man image was tarnished by claims that he had had a seven-year affair. Auditors wanted to take control of his global restaurant group, comprising 21 restaurants and pubs in London, New York, Los Angeles, Florida, Paris, Tokyo, Dubai, Ireland and Prague, to “cherry-pick the winners and say goodbye to the losers”, Ramsay said. Three of his restaurants have now closed. The crisis came after GRH breached covenants – promises made to lenders to secure a loan – on its £500,000 overdraft and £10m of loans with Royal Bank of Scotland (RBS). “We went over our overdraft limit and we did not hit revenue targets,” Ramsay said.
NextCard was founded during the late 1990s by Jeremy Lent, the former chief financial officer of the large financial services company, Providian Financial Corporation. Lent’s business model was simple: use a massive Internet-based marketing campaign to quickly grab a large market share of the intensely competitive credit card industry. By 2000, NextCard, which by then was a public company, had signed up one million credit card customers. Unfortunately, NextCard’s customers tended to be high credit risks, which resulted in the company absorbing much higher than normal bad debt losses. When the company’s management team attempted to conceal those large credit losses, the SEC and other federal regulatory authorities uncovered the scam.
Case 37: American International Group (AIG) and the Bonus Fiasco Synopsis: In September 2008 American International Group started to fall under the financial crisis in America. The United states enter in a recession in the beginning of 2008 but it didn’t hit until the end of that year. Then all big companies started falling and going bankrupt. They decide to help stop the collapse of the America economy by presenting a bailout package of companies in need. The government created a 750 billion bailout package for American companies that are going under.