Chapter 594: Shitong Company

The series of chain bombs of Enron, Andersen and Global Telecom have sounded, and American investors have completely lost confidence in the performance of large companies in the stock market. First, rumors are everywhere, and even the stock prices of large companies such as Microsoft and Intel have plummeted one after another. In order to win back market confidence, US regulators have had to start a big slaughter and catch any clues.

The United States has indeed covered up a big borer like Enron under the decade-long economic growth. Soon, another big guy with a similar scale to Enron has been rumored to the bad news, which has made investors numb to this series of bad news in the market. This big guy is the second largest long-distance telephone company in the United States, the world's largest Internet provider, and the world's world's communications company with a market value of more than US$150 billion.

Originally, the scandals between Global Telecom and WorldCom in history were indeed involved in the Enron case, but it was still a while before the outbreak. However, in this life, Yang Xing felt that letting them have a intensive chain outbreak in the Enron Company bankruptcy case make the water more mixed. The blow to the US financial market is a damaging force and dragging down the recovery of the US economy, which is more in line with his interests as a Chinese to attack opponents.

In addition to causing chaos in the US economy, he is also interested in many businesses of Enron, Global Telecom and World Communications Corporation. The financial war has achieved great results. It is impossible to have banks to earn interest. It should be invested as soon as possible. Investing in one's own expansion is undoubtedly the best choice. Using the money earned from the financial scandal of the US company and then purchasing their bankrupt assets at a low price is really in line with Yang Xing's usual despicable method!

Since Yang Xing can report Anderson anonymously, it would be too simple to send another report email to the Justice Department official who is investigating Anderson Accounting Firm. The email reports Anderson not only make fake accounts for Enron, but also have problems with the audit for World Communications. This is not Yang Xing's verbal verbal. Based on his memories of his previous life, he also investigated World Communications Corporation, so the email is well-founded. At the moment when Enron and Global Telecom reported financial fraud, it certainly attracted the attention of the US Securities and Exchange Commission and the Department of Justice.

Worldcom was originally just a small long-distance phone discount company founded by President Bernard Ebers in 1983. However, Ebers is a very "business-minded". He felt that he was too slow to make a fortune in his telecommunications business, but chose to continue to acquire telecommunications companies to make profits, which coincided with Yang Xing.

So from 1995, two or three years after Ebers changed the company to World Communications, he swallowed more than 70 companies in one go at a speed that made Wall Street stunned. In June 1996, the company's stock price reached the highest level of $64.5 per share, and the company's market value broke through $196 billion, ranking among the top ten communications industry in the United States.

This trick of using mergers and acquisitions to expand wildly, playing with the tricks of "small fish eating big fish" and "fast fish eating slow fish" again and again. It can be played with when the economic situation in the United States was in great shape in the 1990s, but once the Internet economic bubble burst in 2000, telecom companies' stock prices fell, they would be bleeding after the huge wall. Global Telecom's bankruptcy is the lesson of the past.

Due to the crazy expansion of WorldTong, the company's business strategy has had great problems. It seems that operating the telecommunications business has become a side business, while acquisitions and mergers have become the company's main business. Unfortunately, Ebers is barely qualified in the operation of telecommunications, but he is still far from doing finance. Soon, the company's high debts and bleak performance have caused investors to have questions. Even without Yang Xing's advance report, WorldTong could not escape. Yang Xing just detonated the big bomb in advance.

In early December, the Securities and Exchange Commission, based on the report of the "informer", found that this year, at the instruction of Worldcom President Ebers, a large amount of expenses related to the expansion of telecommunications system projects were not recorded as normal costs, but were treated as capital expenditures. This accounting "skill" by Professor Andersen brought Worldcom a huge "profit" of $3.8 billion to Worldcom.

The false account scandal broke out, which brought a catastrophe to Worldcom. The day after the scandal was exposed, the US Securities and Exchange Commission formally prosecuted Worldcom for civil fraud. Worldcom had to issue a statement admitting that the $3.8 billion expenditure was tampered with to inflated cash flow and profits.

The bad news of corporate news that followed made the United States excited. Because Afghan military operations are progressing rapidly, President Bush, who was in high spirits at the Afghan International Conference held in Bonn, Germany, was particularly angry after hearing the news. Is this simply a slander for the United States? I personally instructed to thoroughly investigate the WorldTong case and give an explanation to the American people.

There was a surging crowd outside, and there was President Ebers resigning in disgrace, causing Worldcom's stock to shrink sharply, and the company became an empty shell. In the face of internal and external difficulties, on December 20, just when China Star International held its year-end conference, Worldcom officially submitted a bankruptcy protection application to the District Court of the Southern District of New York. According to the bankruptcy application documents, Worldcom's total assets value exceeded US$100 billion and its debt was US$31 billion. The scale of bankruptcy is twice that of Enron, which just filed for bankruptcy and is 4 times that of Global Telecom's bankruptcy case. It is honored to break Enron's bankruptcy record and become the largest corporate bankruptcy case in the history of the United States!

From mid-September to mid-December, in just three months, Enron and Worldcom, continued to break the bankruptcy records of American companies, and there were also smaller but well-known companies like Global Telecom and Andersen, among which they went bankrupt. The problem was basically the serious problem of making false accounts and deceiving investors, which made American companies always advocate honesty and honesty and law-abiding, collapsed in an instant. This led to the public grievances in the United States, demanding that the truth and cause be found as soon as possible, and the legislation blocked regulatory loopholes. On such public opinion, the two parties in the US Congress rarely let go of disputes and disputes and passed the Sarbanes-Oxley Act as quickly as possible.

The bill claims to be the most important amendment to the U.S. Securities Act since the 1930s. It stipulates stricter qualification requirements for corporate CEOs and financial directors, and requires all listed companies to provide detailed and detailed evidence of whether their internal audit functions are fully utilized. It also requires the company's audit committee to play a more active role, allowing the audit committee to recruit more consulting experts or consultants from outside to help it work when there is insufficient staff.

But in Yang Xing's view, although the Sarbanes-Oxley Act seems to be severe, it still violates the old problem of American economic management. It does not look for problems from the root of the US economy, but repairs the problem of headaches and feet. Any regulations require people to operate, and there will always be loopholes to follow. If it is useful, there will be no subprime mortgage crisis in a few years.

However, the bill requires strengthening external audits of enterprises. Yang Xing believes that Anderson Accounting Firm, which has just gone bankrupt and dissolved, has rich talent resources. Starry Sky Human Resources Group is recruiting and cultivating professional talents from all walks of life. Isn’t this a gift to the door?

Yang Xingtian's fire was really too hot. As soon as the Sarbanes-Oxley Act was released, there were bad examples like Enron and Worldcom, so it was difficult for investors not to look at other large companies. As the saying goes, the world is like a crow. After the impact of "9/11" on the US economy, many problems that were covered up during the past economic growth period have surfaced, and there must be some unanimous consensus among the United States.

Facts proved that this speculation was very accurate. Soon, large companies such as Kmart, Xerox, and Time Warner in the United States also reported financial fraud scandals, and even Microsoft and General Electric were reported. People were panicked for a while, as if every company in the stock market had problems. The stock price of companies suspected of fraud scandals fell from dozens of dollars to several cents overnight, scaring many investors to sell their stocks quickly, and the stock market fell into the worst bear market in 25 years. Investors were anxious to withdraw from the stock market faster than after the 9-11 terrorist attack. Investors generally felt that "playing with stocks" was equal to "playing with fire".

The frequently exposed company financial scandals have hit the US economy very hard, and the resulting market confidence crisis is unlikely to disappear in the short term. Yang Xing and his team took advantage of this wave of sharp drop in US stock prices and shorted them. After a round, they won at least another 100 billion US dollars. Yang Xing finally fulfilled the promise of at least double the investment of US$300 billion to investors, which is extremely bright for his own reputation and future cooperation prospects.

Of course, Yang Xing's biggest gain was not only high returns, but also bought their core assets at a low price after many companies went bankrupt. For example, Enron Company is heavily in debt, but its natural gas mining and transportation pipeline business is still the best in the United States. In addition to oil and gas drilling all over the world, Xingwei Resources is very envious of this!

Even Li Ka-shing, the submarine cable of Global Telecom, can be imagined. In addition, although Worldcom went bankrupt, it still had three kilograms of nails to break the ship. Worldcom's title of the largest Internet supplier and the second largest long-distance telephone dealer in the United States is not fake. It has long made StarDong Network and StarDun Communication salivate.

In addition, although small in scale, Anderson has many leading companies in the industry. Although there are scandals of fake accounts in American companies, they are even better than domestic companies in terms of technology and management. The United States is Zhongxing International's largest overseas market. It is the time when it is working hard and making great efforts, developing local markets cannot be separated from local talents. Now many American companies either go bankrupt or lay off employees on a large scale. There are so many employees who cannot find a job, and it is a waste not to hire them. The problem of Zhongxing International's urgently needed talent development in the US market is solved.

!#
Chapter completed!