Corporate Crooks: How Rogue Executives Ripped Off Americans-- and Congress Helped Them Do It!

Front Cover
Prometheus Books, 2006 - Business & Economics - 225 pages
0 Reviews
How did the most trusted financial system in the world become the breeding ground for the massive corruption uncovered in the Enron and Worldcom scandals? The simple answer is greed. Greed so blinded CEO’s, auditors, and even members of Congress that they allowed a gang of rogue executives to rig the game and cheat investors out of $200 billion, wiping out the life savings of many unsuspecting Americans.
In Corporate Crooks, veteran USA Today investigative journalist Greg Farrell explains how this breakdown happened. The book shows how incentive compensation for CEOs, combined with the decline of the American auditing industry, led to a series of spectacular accounting frauds, not just at Enron and WorldCom, but at other companies as well.
Farrell details how a series of seemingly minor Congressional actions—from a law penalizing corporations for paying salaries in excess of $1 million to a Senate vote to scuttle a rule calling for the expensing of stock options—created the conditions that led to the accounting abuses that eventually brought gigantic corporations down.
Written in a straightforward, explanatory style, Corporate Crooks allows the average investor to understand the root causes of the biggest accounting frauds of the past five years. But understanding how these frauds took place isn’t enough. Farrell also arms readers with the knowledge they’ll need to judge whether the next fantastic, fast-growing company of the new economy is a genuine business success or another Enron waiting to implode.

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.

Contents

Foreword
13
Chapter One Executive Compensation
23
Chapter Two Enron
39
Copyright

9 other sections not shown

Common terms and phrases

About the author (2006)

Greg Farrell (Pelham, NY) is an award-winning reporter who writes about Wall Street for The Financial Times. Prior to joining the FT, he was an investigative reporter for USA Today, where he specialized in white-collar crime, legal affairs, and the regulation of corporate behavior. He is a past winner of the American Business Press's Jesse Neal Award for investigative reporting and a recipient of the Knight-Bagehot Fellowship for business journalism.

Bibliographic information