Jim, nothing like Enron & Andersen in Europe that I can see. Both of those were criminal enterprises.
Now, people have to be criminally prosecuted.
If convicted, guilty parties need to see the inside of a jail cell for a few years.
And laws need to be changed regarding accounting.
As I have said for some time, we are now the banana republic of investing, and our markets are sure showing it........
Like that Cartman kid on South Park, overseas money has been saying, for some time now,
"SCREW YOU GUYS, I'M GOIN' HOME
William:
While there are lot's of questions about American corporate governance, I'll speculate that it's worse everywhere else... That doesn't excuse what many of these American corporate crooks are doing and will do, but a look at Japanese and European accounting and corporate governance practices would make our crooks look like saints... : >
Lookee here:
Roots of the Turmoil
Financial unrest worsened dramatically in November 1997, when Hokkaido Takushoku Bank and Yamaichi Securities both collapsed. A severe loss of confidence in the accounting, auditing, and disclosure systems ensued. Confidence was shaken further by the banks'overloaded stock portfolios of banks in Japan. The sudden collapse of major financial institutions, which are subject to inspection and examination by the authorities and which must publicly announce their audited financial statements, brought about the extraordinary situation whereby financial institutions, including banks and securities companies, lost mutual trust in the soundness of business operations. The situation was made worse by the sense of blockage in the inter-bank market, causing a further tightening on the reserves of many banks. The main reason why the Long Term Credit Bank of Japan collapsed and was nationalized in October, 1998: difficulties in issuing bank debentures that were not expected to be protected by the government after March 2001.
nira.go.jp
And Europe:
The Enron scandal has brought unprecedented attention to the U.S. accounting system and the topic of financial reporting and disclosure. While Enron may be news here, in many countries Enron-style accounting is the norm. A reflex response has been for governments and Securities and Exchange Commission-type organizations to tighten their regulation of accounting standards, despite the evidence that regulation decreases financial reporting quality.
gsbwww.uchicago.edu
The U.S. lesser of the two evils... : >
Jim |
