Corporate Accounting Scandals Rock Public Confidence
2002 Year-in Review
We entered the year stunned with the bankruptcy of Enron, which was caused by accounting fraud and misdoings within the corporate office. Trillions of dollars of wealth evaporated as the stock market went south in a vote of no confidence by investors in corporate America, in the accountants who audit them, and in the investment houses that recommend them as investments. WorldCom came along by early summer and took over the dubious title of being the biggest accounting scandal in US history. By year-end, the list of corporate accounting scandals swelled to include other corporate giants such as Adelphia, AOL, K-Mart, Xerox, Qwest, ImClone, Dynegy, Global Crossing, Peregrine, and Tyco. The public watched as CEOs and CFOs were handcuffed, arrested and hauled off to jail in an attempt to reassure the public that the government is looking out for the public's interest. Capping the year was Time Magazine's naming of "The Whistleblowers" as their choice for "Persons of The Year."