Link: Follow the Enron Saga
In a damning report, a US Senate investigation said serious failings at the SEC had led to the collapse of the once-mighty energy company.
Enron filed for Chapter 11-bankruptcy protection in December 2001, after once being worth £62bn.
In the 127-page report, the Senate said the watchdog had not reviewed any of Enron’s financial statements since 1998, which it claimed would have ‘uncovered some of the problems with the company’s financial practices that appear to have been signalled in these documents’.
Furthermore, the SEC had exempted Enron from some federal accounting requirements.
The report, released in full today also found fault with Wall Street financial analysts, investment banks, credit rating agencies and auditors who, it said, did not detect the accounting irregularities or recommend tighter controls.
The SEC has not yet responded to the report.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements