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On the other hand, consider how rare the Enron case seems to be. Since it's implosion, how many other companies were based on total fraud? Theranos is all that
by DontGiveTwoFlux 8y ago
On the other hand, consider how rare the Enron case seems to be. Since it's implosion, how many other companies were based on total fraud? Theranos is all that comes to mind and it wasn't even public.
It seems like the system mostly prevents massive Enron style fraud.
- megaremote 8y agoYou mean, how many companies have been outed as being based on total fraud.
- wp381640 8y agoheaps of public companies turn out to be frauds, there is an entire industry out there of people spotting fraudulent stocks and shorting them (see Muddy Waters, Citron research et al) Sino-Forest has probably been the largest and most well known (as well as Valeant and their fake pharmacies) along with a bunch of Chinese small-medium-cap reverse IPO's like CCME
- darkpuma 8y agoTotal fraud isn't the only sort of corporate fraud though. Legalized insider trading would really open the floodgates for financially incentivized 'whistle-blowing' of any sort of fraud (as well as basically anything else that could conceivably move the market...)
- hammock 8y agoTyco, WorldCom, Healthsouth, Adelphia, Lehman Brothers, Freddie Mac, AIG, Bernie Madoff... Shall I go on?
- diogenescynic 8y agoTrump.