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 conjunction has been holding the debts of 40 billion dollars and four years of magnified profits, seeking to support the growth in stock prices. In the bankruptcy of Enron five thousand employees lost their jobs and at least(prenominal) $ 1 billion in retirement savings. And the greatest ravish was the fact that, having asked officers of the corporation temporarily hold shares, as the society is in crisis, Kenneth Lay and Jeffrey Skilling were received from sale of its stakes one by one 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 transmission line has experienced firsthand, - said in an interview with RBC day-by-day 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 theatre director and treasurer of the company for providing false financial documents. According to Matthew Sherwood, this is the most(prenominal) 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 filtrate the range of data considered insider information.
The collapse of Enron, exposed and political elect(ip) in the U.S.. Corporation has...If you want to get a sound essay, order it on our website: Orderessay
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