ITT we discuss financial frauds and ask questions about them.
Pic related, how could this happen? How did nobody notice? I watched the documentary 'The Smartest Guys in the Room', but what I don't understand is how their auditors didn't spot things.
>>1038736
Herd mentality mayne. Investors aren't supermen.
Politics say that it's impolite to rain on such a happy parade. You would've been shunned Amish style if you shit on so many people making money.
>>1038736
sup, /fraud/. Where can I get tren in America?
The auditors did spot things. They just did not care. Look up Arthur Anderson, see what it did to them.
>>1038736
How much do you think Enron was paying their auditors?
Cheers!
Do you think Apple is part of this?
>>1038736
>but what I don't understand is how their auditors didn't spot things.
oh sweet summer child
>>1038736
Best one ever
>>1038736
One of the main reasons was because the upper leadership was detached from the chairman. For example, they testified later on that they were shocked when finding out the blockbuster deal didn't actually exist.
When Genius Failed
Good read
>>1038736
>what I don't understand is how their auditors didn't spot things.
>>1038796
This is a big part of it OP. It used to be called "the big 5" and now it's the "big 4", guess who disappeared?
>How did nobody notice?
They did notice. Remember the phone call where the CEO called someone an asshole? That guy noticed and called the CEO out. Short sellers are the harbingers of the market, they dispense information that others will not. Others notice but don't sell short, they tend to stay quiet and wait- people like seth klarman. His firm spent several years examining enron and when the company went bankrupt he bought the undervalued bonds and tripled his money. There are many people who notice, all of them trying to make money in their own way whether that's shorting stock, buying CDS or buying undervalued assets in bankruptcy.
