A Financial History of Modern U.S. Corporate Scandals, 1st Edition

  • Jerry W. Markham
  • Published By:
  • ISBN-10: 076562110X
  • ISBN-13: 9780765621108
  • Grade Level Range: 11th Grade - College Senior
  • 742 Pages | eBook
  • Original Copyright 2005 | Published/Released July 2007
  • This publication's content originally published in print form: 2005

  • Price:  Sign in for price

About

Overview

This major new reference for students, faculty, and professionals of American corporate governance, modern financial history, and securities law begins with an examination of the collapse of the Enron Corporation and other financial scandals that arose in the wake of the market downturn of 2000. Jerry W. Markham, author of the award-winning Financial History of the United States and former SEC counsel, provides context and analysis to the modern era of corporate curruption.

The book examines the SEC's full disclosure system in corporate governance and the role of accountants in that system, including Arthur Andersen LLP, the Enron auditor that collapsed after it was accused of obstructing justice. The author chronicles the meltdown in the telecom sector that gave rise to accounting scandals at Nortel, Lucent, Qwest, Global Crossing, Adelphia, and WorldCom. He traces other accounting and governance failures at Rite Aid, Xerox, Computer Associates, AOL Time Warner, Vivendi, HealthSouth, and Hollinger. Markham also covers such Wall Street scandals as the Martha Stewart trial, the financial analyst conflicts, and the mutual fund trading abuses.

Table of Contents

Front Cover.
Half Title Page.
Title Page.
Copyright Page.
Contents.
Preface.
Acknowledgments.
Introduction.
1: The Stock Market Bubble and Enron.
2: The Stock Market Bubble.
3: The Market Boom.
4: Raising All Boats.
5: Run-Up in IPO Prices.
6: Structured Finance.
7: Collateralized Debt Obligations.
8: New Instruments.
9: Commodity Futures Modernization.
10: Traditional Markets.
11: Electronic Communications Networks.
12: Broker-Dealers.
13: Merger Activity.
14: Fraud Schemes.
15: Ponzi Schemes.
16: Electronic Fraud.
17: Pump and Dump Schemes.
18: Other Problems.
19: Executive Compensation.
20: Expensing Options.
21: The First Attack.
22: The Market Reacts.
23: The Fed Reverses Course.
24: Economic Decline.
25: The Damage Is Done.
26: Deficits and International Problems.
27: Prelude to September 11.
28: The 9/11 Attack.
29: Restarting Wall Street.
30: Coping With Terror.
31: The Enron Corp..
32: Creating a Name.
33: Enron’s Management.
34: Jeffrey Skilling.
35: Andrew Fastow.
36: Enron Values.
37: Pipeline Operations.
38: Deregulation.
39: Trading Operations.
40: Mark-to-Market.
41: Wind Farms.
42: Foreign Operations.
43: Foreign Problems.
44: Enron Online.
45: Electricity Market.
46: Broadband.
47: Merchant Investments.
48: Financial Results.
49: Fancy Finance.
50: Halcyon Days.
51: An Icon.
52: Special Purpose Entities.
53: Securitizing the Balance Sheet.
54: Cactus and JEDI.
55: Beneath the Mask.
56: The Death Spiral.
57: Sherron Watkins.
58: Accounting Disclosures.
59: LJM.
60: New Power Company.
61: Implosion.
62: Chewco.
63: Whitewing.
64: Influence Fails.
65: Death Throes.
66: Bankruptcy.
67: The Powers Report.
68: Media Circus.
69: Congressional Hearings.
70: The Enron Scandal.
71: The SPEs.
72: Debt and Equity.
73: Nikita, Backbone, and Others.
74: Blockbuster.
75: Business Model and Disclosure.
76: Executive Bonuses and Stock Sales.
77: Employee Losses.
78: Lockdown.
79: Other 401(k) Problems.
80: Other Abuses.
81: Andrew Fastow.
82: Extorting a Guilty Plea.
83: Lea Fastow.
84: Other Defendants.
85: Kenneth Lay.
86: Jeffrey Skilling.
87: Prepaid Forward Transactions.
88: The Prepays.
89: The Sureties.
90: Citigroup.
91: Liability of Financial Institutions.
92: Merrill Lynch.
93: Other Institutions.
94: California Deregulates.
95: Flawed System.
96: Enron Games the Market.
97: Crimes and Investigations.
98: Round-Trip Trades.
99: Full Disclosure and the Accountants.
100: Full Disclosure.
101: Disclosure History.
102: The Panic of 1907.
103: Federal Actions.
104: Blue-Sky Laws.
105: The Stock Market Crash of 1929.
106: Franklin D. Roosevelt.
107: Laying the Groundwork for Full Disclosure.
108: The Securities Act of 1933.
109: The Securities Exchange Act of 1934.
110: Disclosure Requirements.
111: FASB.
112: Certification.
113: Early Accounting History.
114: Accounting in Great Britain.
115: British Accountants Move to America.
116: Homegrown Accounting.
117: Licensing Accountants.
118: Accountants’ Liability.
119: Accounting Shortcomings.
120: Accounting Problems Spread.
121: Flaws in Full Disclosure.
122: The Metcalf Report.
123: The Cohen Committee.
124: The Treadway Commission.
125: Financial Scandals Embroil the Accountants.
126: S&L Crisis.
127: Other Audit Failures.
128: Liabilities Mount.
129: The Independence Controversy.
130: Other Consulting Issues.
131: Accountants as Policemen.
132: The LLPs.
133: Arthur Andersen and Other Scandals.
134: Background.
135: Early Years.
136: Andersen Audit Problems.
137: Andersen’s Problems Mount.
138: Accenture.
139: Enron Erupts.
140: The Indictment of Arthur Andersen.
141: The Trial of Arthur Andersen.
142: Conviction.
143: SEC Role.
144: Accrual versus Cash Accounting.
145: Secret Reserves.
146: Cookie Jar Reserves.
147: Channel Stuffing.
148: Statement of Cash Flows.
149: Pro Forma Results.
150: Rite Aid.
151: Computer Associates.
152: Xerox.
153: Critical Path and Others.
154: Still More Problems.
155: Round Trips.
156: Kmart.
157: The Growing of Tyco.
158: Tyco Business.
159: Tyco’s Problems Emerge.
160: Tyco’s Problems Grow.
161: The Scandal Begins.
162: The Scandal Broadens.
163: Kozlowski’s Indictment.
164: Restructuring.
165: The Trial.
166: Belnick’s Trial.
167: Fiduciary Duties and Corporate Governance Principles.
168: Joint-Stock Companies.
169: Early Corporate Governance Concerns.
170: Charter Wars.
171: General Incorporation Laws.
172: Modern Corporate Law.
173: Delaware and the Model Business Act.
174: The Board of Directors.
175: Outside Directors.
176: More Board Reforms.
177: Corporate Officers.
178: Shareholder Responsibilities.
179: Shareholder Rights.
180: Shareholder Voting.
181: Proxy Votes.
182: Proxy Fights.
183: SEC Proxy Regulation.
184: Trustees.
185: The Business Judgment Rule.
186: Fiduciary Duty of Care.
187: Delaware Duty of Care.
188: The Fiduciary Duty of Loyalty.
189: Executive Compensation.
190: Close Corporations.
191: New Business Structures.
192: Fiduciary Duties of Controlling Shareholders.