For my accounting class, I have the option of seeing this movie for extra credit. I know what basically happened with Enron, but I would love to see some more stuff that I have not known about (more on the Accounting firm's involvement in the scandal).
Have you guys ever seen this documentary or have an opinion from an Acounting point of view?
Would be interesting to see what everyone thinks where this went wrong. Was it Ken Lay or was it the traders on Wall Street who looked away? Was it accomplished with the help of someone in the white house?
I have also watched documentaries and researched the downfall of WorldCom and that is very interesting also.
I haven't been able to get past the log jam of legalese...
From the accounting standpoint I thought they were inflating their numbers by using shell companies?
Transeat In Exemplum: Let this stand as the example.
Enron.....isn't that like one of the planets names in Star Wars or somthing
................Which car will hit 400 whp first???................
No, but they WERE massive contributors to the Bush Cheney campaign of 2000
Transeat In Exemplum: Let this stand as the example.
Yeah, as far as I know they have inflated their "earning estimates" by a lot. Then they "sold" the departments that were losing money to foreign subsidiaries of Enron.
I might as well go see this movie to understand this a little better as far as the accounting goes.
GAM (The Kilted One) wrote:No, but they WERE massive contributors to the Bush Cheney campaign of 2000
Right away with the politics
Thats probaly very true, not to mention how much sense it would make for them to help the Rep. party.
But GAM, I'm curious, not to sound like an ass clown, but in all seriousness, could you find out for me who, if any party, PETA gave money too...you seem to find that out a lot better than I can.
Sry, didnt mean to post jack
LowFire wrote:Enron.....isn't that like one of the planets names in Star Wars or somthing
Endor... i think your're thinking of, damn im a geek for knowing even if im wrong.
Emor8t wrote:LowFire wrote:Enron.....isn't that like one of the planets names in Star Wars or somthing
Endor... i think your're thinking of, damn im a geek for knowing even if im wrong.
Endor was a moon, not a planet. Home of the Ewoks.
Who's the geek now?
<img src="http://img.photobucket.com/albums/v331/gutty96/f0ab1de2.jpg">
**there is only one true love in my life... and my girlfriend has learned to live with it**
I knew it was something cloe like that
And Gutty, I already knew you were a geek
................Which car will hit 400 whp first???................
For @!#$s sake people. This thread is not about star wars.
Adam: from the LexisNexis search I've tried, as well as Google, they don't Donate to any campaign. All I've seen is that they give hell to politicos that have a chicken farm or slaughterhouse in their district.
Also, I just find it inimitably convenient that the culprits were heavy personal donators (in addition to the large corporate donations) to the GOP and they also conveniently got comparitive slaps on the wrists.
WorldCom... same basket on the trip to hell.
Transeat In Exemplum: Let this stand as the example.
For some reason I think that the whole WorldCom scandal was more interesting but less publicized. I guess becasue Enron came first. I saw a MSNBC Special on the downfall of WorldCom and it's very interesting . It's freaking amazing what these @!#$ers got away with. And the CEO he's the biggest cocksucker of them all. What a @!#$tard, trying to deny most of the charges when the evidence was clear.
WorldCom, another GOP financier.
Actually to be fair, they only dumped about half of what they did into the republicans as they did into the DNC.
Anyhow... I think they oughtta be branded as financial terrorists.
You defraud BILLIONS of dollars out of a company, you go to jail after FULL restitution.
'nuff said.
Transeat In Exemplum: Let this stand as the example.
But from an accounting point of view, I wouldn't call them the smartest guys in the room. They got caught. The smartest people don't get caught
Oh, and I meant to tell you that it was special purpose entities (SPE) that they were using to hold their debt. SPE's are used for off balance sheet financing. Basically, they are setup with some form of collateral (like AR) and are used to get loans, etc. So enron sets up SPE's and gets loans (because debt financing is cheaper than equity financing...) and they are able to keep the debt off their books. FASB has now changed the rule from reporting an SPE on the books if its is controlled with "voting interests" to requiring it to be reported if the parent company is subject to the majority of the risk associated with it.
Krispy Kreme basically did the same thing. The gave the title of their property to an SPE and then "charged" themselves much less than the market would. The SPE was able take out a huge loan and KK got the money.
I'm no accounting major, but I knew there was a goodly bit of fakery going on.
I'm still in utter dismay at how each of these shysters managed to avoid prosecution.
And no, they weren't the sharpest crayons in the box, they let the company spin out of control.
Transeat In Exemplum: Let this stand as the example.
No, I'm not an accounting major, Marketing actually. I am taking a couple of Accounting and Finance classes though. Pretty interesting stuff. Thanks for the insight.
