Lay resigned again in January 2002 after becoming the focus of the anger of employees, stockholders and pension fund holders who lost billions of dollars in this disaster. Jeffrey Skilling Former Chief Executive, President and Chief Operating Officer. Skilling joined Enron in 1990 from the consultancy firm McKinsey, where he had developed financial instruments to trade gas contracts. Prior to becoming Chief Executive in February 2001, Skilling was President and Chief Operating Officer of the firm. Skilling was also seen as a key architect of the company’s gas-trading strategy.
The Fight on Minimum Wage Minimum wage. The lowest amount of money regulated by the government in which businesses must pay their employees. Minimum wage is slowly on the rise, with dramatic proposals in the last few months. However the raise in minimum wage could cause great harm to the United States economy. The minimum wage should not be raised because it would increase the price for the consumer, it could harm the small businesses of America, and it could cause millions of minimum wage workers to be laid off.
When governments post a budget deficit for a year, many of its citizens become infuriated. People are quick to blame their elected officials. Reckless spending causes debt, and therefore their government body is reckless and irresponsible bunch. Federal budget deficit is publicly recognized as a bad thing, and there are legitimate reasons why. When the government has a budget deficit, it is because the people in power have consciously chosen to spend more money than the government took in for a year.
A system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that
On October 24 of 1929, otherwise known as Black Thursday, a record 12,894,650 shares were traded. Investment companies went into scramble as they tried to balance the market. However, the next week, on “Black Tuesday”, the stock market had officially collapsed. By then, around 16,410,030 shares were traded in the New York Stock Exchange. Billions of dollars were lost and many citizens jobs were affected from the collapse.
Timeline: Refco Inc. announced on October 10, 2005 that it’s CEO and chairman, Phillip R. Bennett had hidden information about $430 million in bad debts from the company's auditors and investors, and that now he had agreed to take a leave of absence. It was discovered through an internal review over the preceding weekend that a receivable was owed to the company by an unnamed entity that eventually turned out to be controlled by Mr Bennett, as much as approximately US$430 million. It was later known that, Bennett had been buying bad debts from Refco so that it would need to write them off, and he was paying for the bad loans with money borrowed by Refco itself. How he managed to pull this off is, at the end of every quarter he had arranged for a certain Refco subsidiary to lend money to a hedge fund called Liberty Corner Capital Strategy. Liberty then lent the money back to Refco Group Holdings.
For example, the Ford the automobile company has continually been bailed out by the government after receiving net losses (Bell, 2015). The bankruptcy of Ford would result in loss of thousands of jobs, which would make the government and its leaders look bad. Therefore, the bail-out of Ford does not make economic sense, but has political sense, since it would damage the image of the current leaders and their political parties. With a good Authoritarian leader, such a company would not be bailed-out but the government would invest those resources in development projects. Authoritarian governments can easily focus on long-term developmental
Step One: Identify and define the problem • Wells Fargo, one of the largest banks in the United States was recently fined $185 million because of a widespread scheme that employees created to collect fees and hit sales targets. These employees opened up over 1.5 million deposit accounts that were reported to be not authorized by customers. This scheme has been going on since 2011 without any acknowledgment until recently when customers were being charged with overdraft fees and insufficient funds. Step Two: Analyze the problem • The problem to be analyzed here is exactly why the employees were doing what they did based on the serious legal consequences. The 5,300 employees that were involved in the fraudulent practice opened up over 1.5 million deposit accounts.
To conclude, the Great Depression wasn’t just a fail in the stock market, it was a combination of social and economic factors. Isolationism, made us overproduce and under consume, which resulted in a loss of jobs and money. Consumerism led people to buying expensive things that they don’t need and regretting it later. The Great Depression not only affected business but also everyday Americans. In all of American history, the Great Depression was the worst economic collapse that severely affected
Today, Arthur Andersen & Co. is notoriously known for its’ unethical behavior of collusion with Enron, leading to thousands of hard working Americans losing millions of dollars. This type of behavior shows how far Arthur Andersen & Co. has strayed from its original foundation of honesty and integrity, instilled in it by the founder and senior partner Arthur E. Andersen. Originally named Arthur, DeLany & Co. in 1913 then soon changed to Arthur Andersen & Co., Andersen sought to challenge the status quo of the public accounting system. Andersen continually forged new ways of serving his clients, training his employees and growing his company. Using the motto “Think Straight-Talk Straight,” Andersen challenged traditional accounting practices