Coquettish Rebirth

Moreover, Enron's bankruptcy was far from a series of trust crises, it did not simply affect the stock market, the foreign exchange market and the bond market, but it really made many people in the United States anxious-you must know that Enron suddenly declared bankruptcy , They had a lot of retail investors and institutions before, and they were immediately locked up, and the stocks in their hands could not be sold, okay?And if it goes bankrupt, according to the laws of the United States, it is not to liquidate shareholders or investors first, but to make up for the unpaid taxes first, and then to repay bank loans and pay employees wages. A company that files for bankruptcy , it is not easy to sell for that, it is very likely that various assets will be directly auctioned in the end, and this kind of auction must be relatively cheap, so the money returned in the end will be much higher than the assets owned by Enron itself discounted.And the money exchanged for these assets is to pay back the money to various creditors. After paying the wages to the employees, there is really not much left in the end!And if the remaining money is distributed to investors, then everyone will get too little money, and it can even be said that the average amount of the money per share is not as good as the stock price before bankruptcy!And it's not as good as many!

In this way, for investors, it is more than just being locked up!If you are stuck, at least in theory, there is a chance to get out of the trap.Even if the set is resolved after a few years, how much money goes in and how much money comes out, it seems to have lost the opportunity to invest and make money in the past few years, but at least it can be considered a return, right?But now that such a person has been directly liquidated, it is really cutting off the flesh, almost cutting off the flesh of the whole body!This directly makes all the investment popularity spurt blood, okay?Before Enron’s market value was the highest at the beginning of the year, it was close to 800 billion U.S. dollars. If a person invested 80 U.S. dollars in it, the market value of Enron before bankruptcy was 2 million U.S. dollars, which means that this person’s money is only 8000 U.S. dollars left. This is already bleeding .Then go through bankruptcy and liquidation, and it would be nice to give them 4000 in the end. Maybe they can give him 2000 in the end!80 was thrown in, and it turned out to be 2000!It's only been less than a year, and everyone who encounters this will be impatient!

But they are too anxious to ask An Ran for an explanation?This matter is left in the country.No matter what, the common people would go to the gate of the government to demonstrate, asking the government to give everyone an explanation, and even asking the government to pay everyone.But this is definitely not the case in the United States. The US government pays everyone after it is full. However, these investors are not without a place to discuss—they decided to sue Andersen, according to their statement.It was because of Andersen's idea and Andersen's deliberate exploitation of relevant loopholes during the audit, which caused the people to lose a lot of money. They asked Andersen to compensate them for all their losses!

In addition to ordinary people losing a lot, some big investment banks have also lost a lot - such as JP Morgan, which just gave Enron an unsecured loan of 5 million US dollars in the first half of this year.No collateral! 5 million dollars!And Citibank's loss is similar, basically it is almost 5 million US dollars, just like that!However, these big investment banks are actually not the biggest troubles, and Enron's troubles are not the biggest. The real troubles are the guy whose accomplice is dead, but he is still alive-Andersen!For such a giant company, once the world's number one accounting firm, whose audit revenue in 2000 had already reached 83.88 billion US dollars, the troubles are really huge now!

Why do you say troublesome Shanda?Because Arthur Andersen had encountered a crisis of trust because of all kinds of ideas to make false accounts for Enron to take advantage of loopholes.At the same time, there are tens of thousands of people who want to sue Andersen with a class action. At that time, I don’t know if some lawyers will rush out to stand on the side of the people and sue them. After all, it is absolutely impossible to win Andersen. It is the most prestige advertisement for oneself!Not to mention that there are lawyers here in the United States who specialize in helping to fight this kind of lawsuit, and they will also negotiate with the plaintiff. If they win, the compensation law firm of the big company will take part of it!

In addition, Andersen's crisis is not just that - some newspapers got information from relevant people in the China Securities Regulatory Commission, and then broke the news. It turned out that after Andersen knew that the China Securities Regulatory Commission began to investigate Enron in September, Andersen himself started to destroy the archives about Enron in various firms!That was crazy and destroyed for more than a month!By the time it was discovered and stopped, tons of data had basically been destroyed!When an accounting firm encounters evidence that it may have a crime.Actually adopted the same method as the criminals, actually destroyed the evidence?Is this still what a century-old enterprise should look like?Is this still what the world's number one accounting firm should look like?We must know that in 9, Andersen gained the trust of the public on a large scale for the first time, that is because they disclosed the debt statement of a steamship company they signed with themselves and the cost of a silent ship. loss!

It is because Arthur Andersen has been so strict with customers in history, and they will think of being responsible to the public without anyone asking.They will always want to disclose more information to protect investors, which has allowed them to gain the trust of the American people, and this has gradually made them the number one accounting firm in the United States and the number one in the world!It can be said that in the past, Andersen was the most trustworthy firm, and it was also the benchmark firm of the entire accounting industry!As a result, there is a problem with such a benchmark now. As a result, a firm that has been trusted by everyone for 100 years suddenly broke out with such a scandal, and it has become to destroy all kinds of documents and records in order to escape guilt!How can this not make people feel cold?

And with the disclosure of more information, this Andersen is also more and more chilling - it is said that among the more than 2 employees in Enron, more than 100 people in the financial department are hired from Andersen!Middle and high-level people such as chief accountants and financial directors are hired directly from Andersen, and these people are allowed to be named in the two companies!And in the board of directors, half of the directors have a relationship with Andersen in one way or another. It can be said that Andersen is simply one with Enron, and it is simply a mess!An accounting firm that used to over-disclose the company it signed with and treat the company it signed with strictly, has now begun to collude with the company it signed with.Now I have started to partner with the company I signed to cheat people!Who can bear this?

But just as there are always "temporary workers" top bags in China, the same is true in the United States-Andersen's Chicago headquarters had to admit to the public that its company had indeed destroyed tons of documents, but all of this It has nothing to do with their Andersen headquarters, and it is definitely not ordered by the Chicago headquarters!All of this is done by the branch in Houston!Because An Ran was in Houston, Arthur Andersen's Houston office was in collusion with An Ran.It has nothing to do with Andersen as a whole!And as if to prove this point, the Chicago headquarters quickly announced the removal of David Duncan, the senior partner of the entire firm and the boss of the Houston firm.But why is David Duncan willing to be such a scapegoat?So the day after Arthur Andersen announced his expulsion, Duncan directly accepted the interview and said that it was not his "temporary worker" who did everything. How much courage would he have to dare to do such a big thing?Is he going crazy?Of course, he did everything under the instructions given by Andersen's headquarters!Although he didn't have any evidence, he was definitely ordered by the headquarters to do it!

The two sides then started to stir up each other in the air.Neither of them met each other, they both spoke to the media and then quarreled with each other.Such a way of quarreling is just like a couple whose relationship has broken down and is about to divorce. It is true that one side wants to push the responsibility to the other, and the other side also wants to push the responsibility away, so it becomes a mutual disclosure Such a verbal drama of fighting each other to the bottom!Such a big battle.Andersen's headquarters, or Andersen's Chicago headquarters, wanted to cut off the wrists of strong men, but what they didn't expect was that they would also have their wrists broken by strong men!

It turns out that Andersen did not have many ways to control its branches in the early years of globalization, and they did not have so many resources to spread all over the world, so in the end, the founder of their parent company in the United States thought of I found a good way, which is similar to a partnership system!He went to Switzerland to register a parent company of Andersen.Then Andersen was turned into Andersen's US branch, and then it became just such a subsidiary of the parent company.At the same time, he also authorized other people to open branches in other places around the world under the banner of Andersen. Of course, the rules must abide by Andersen's rules.So after decades, Andersen America is not actually the upper-level headquarters of Andersen all over the world, but a parallel organization!In other words, it is equivalent to Andersen United States, Andersen Andersen in the United Kingdom, Andersen Andersen in Japan, etc. to form a group like Andersen!And now, such a group is ready to break Andersen America!

The Andersen headquarters declared that what happened to Andersen America was caused by Andersen America itself, and it has nothing to do with Andersen of other companies.So when everyone partnered to create a world-class Andersen Alliance.It is impossible to take effect on Andersen America if it is agreed that resources should be shared, profits should be shared, and risks should be shared!This means that if Arthur Andersen America is really sued by the American people in the future, it will really pay a lot of money. Andersen of other countries will not help out a penny, and Arthur Andersen America will pay by itself!

Isn't such a scene of praying mantis catching cicada and oriole behind is good?The good ones are still behind!Various "franchisees" and "allies" have found that Andersen's brand is unreliable, and even if it loses, it will be handed over to Andersen America.But this Andersen brand stinks, how will the rest of them make money in the future?So led by Andersen Port and Andersen China, various defections began!It shows that Andersen Port and Andersen China announced their separation from Andersen Group, and then joined PricewaterhouseCoopers. After changing a brand, it became a branch of PricewaterhouseCoopers Port and PricewaterhouseCoopers China. A division of !Within two days, Andersen Russia also announced its defection and joined Ernst & Young, then Andersen Canada announced the start of merger negotiations with PricewaterhouseCoopers, Spain Andersen also announced its departure from the global Andersen system, and Andersen Singapore, Andersen Philippines, Andersen Stay Bay, Andersen Japan and Andersen Thailand jointly stated that they would leave collectively, and then collectively join the KPMG accounting firm system!In a week's time, such an international and world's number one law firm that had been built up over decades of hard work fell apart in a blink of an eye!