Want to Read Currently Reading Read. Other editions. Enlarge cover. Error rating book. Refresh and try again. Open Preview See a Problem? Details if other :. Thanks for telling us about the problem.
Return to Book Page. Asset-protecting strategies for the millions of investors spooked by the ongoing Enron debacle The collapse of Enron--one of the most costly bankruptcy cases in history--has led millions of investors to question the safety of their portfolios and retirement plans. The first Enron book specifically for investors, "Investing in a Post-Enron World "pulls no punches in telling investors what to buy and whom to trust, along with red flags to watch for.
Its numerous methods for minimizing risk and overexposure include: A quick course in investing and finance Guidelines for pulling the truth from financial statements Rules for "Enron-proofing" a portfolio through diversification Simple techniques for valuing a com Get A Copy.
More Details Other Editions 4. Friend Reviews. To see what your friends thought of this book, please sign up.
To ask other readers questions about Investing in a Post-Enron World , please sign up. Be the first to ask a question about Investing in a Post-Enron World. Lists with This Book. This book is not yet featured on Listopia. Community Reviews. Showing The corporate scandals have also awakened corporate boards, which soon must be comprised of a majority of independent, outside directors.
Gone are the days of rubber-stamp boards and cozy, wink-wink relationships with management. Post-Enron boards are expected to be strong, independent, active boards, demanding much more from CEOs than in the past.
Even in a Post-Enron World, 'Pro Forma' Reports Continue - WSJ
Turnover in the ranks of CEOs is likely to increase over the next few years. The role of the chief financial officer in righting the corporate ship should not be ignored. But the CFO does not have to leave his comfort zone to the same extent as many CEOs in order to make the certifications and vouch for the financial statements — the CFO typically takes the laboring oar in the preparation of SEC reports.
The CFO may take little comfort in that fact, however, when his personal assets and freedom are on the line. But CFOs ought to be thankful for one aspect of the new certification requirements: they ensure that CFOs are not acting alone. The certifications now require an appropriately high level of direct involvement and familiarity by the CEO in these matters. If Mr. The CEO clearly is faced with a heavy new burden.
So what are the new consequences for failures or abuses like those that led to the corporate scandals? The answers lie in two places: the criminal provisions of the Sarbanes-Oxley Act, and, separately, the U.
- The Timothy Files (The Timothy Cone Series).
- Post-Enron Observations on Corporate Governance.
- Economy: Why Post-Enron Reforms Haven't Helped.
- Ethics for a Post-Enron America | SpringerLink.
Sentencing Guidelines. Many look to the new high-profile criminal penalty provisions of Sarbanes-Oxley with great trepidation, as well they should, where statutory maximum periods of incarceration catapulted from five to 20 and 25 years depending on the offense. While those prison terms have received extensive play in the media, even before passage of Sarbanes-Oxley the U.
Sentencing Commission significantly modified its Sentencing Guidelines. The Guidelines apply equally to public and private companies, as well as their respective principals, and now also provide significantly tougher penalties for corporate managers. The Guidelines have virtually morphed potential halfway house sentences, or four- to five-year stays at Club Fed, to legitimate to year sentences.
In fact, many commentators have noted how the effect of the strengthened Guidelines was to create a higher base offense level for the white- collar criminal than for the mid-level armed narcotics trafficker. By shifting covered corporate and securities offenses to the provision governing embezzlement and offenses involving fraud or deceit, a first-time individual defendant could now face imprisonment for a term between 19 and 24 years. In fact, the new Guidelines treat large securities fraud more harshly than some street crimes.
Against this backdrop, Congress, in Sarbanes-Oxley, still directed the Sentencing Commission to review the Guidelines applicable to those offenses addressed in the Act to ensure that they adequately reflect the seriousness of the offenses and adequately deter and punish the offenders. In addition to mandating the review and amendment of the federal sentencing guidelines, in Sarbanes-Oxley, Congress also created new federal crimes and increased penalties for existing federal crimes.
What some may call the Arthur Andersen obstruction law is Section , which amends the obstruction of justice statute by adding two new offenses. The second new offense, aimed at accountants and the destruction of audit records, obligates accountants to maintain corporate audit records or work papers for five years.
How do these new offenses impact CEOs? Sarbanes-Oxley also amends the mail fraud statute to add a specific section relating to securities fraud.
Investing in a Post-Enron World
In addition to creating new crimes, Sarbanes-Oxley also significantly toughens the consequences for violations of existing crimes. Perhaps in the post-Enron, post-bubble environment, coping with this additional layer of CEO responsibility may not be as difficult as it seems at first blush.
Some of the bubble-era motivations that led to the scandals and placed CEOs into this predicament in the first place have abated somewhat. Wall Street firms are under investigation by the NASD, the Manhattan District Attorney and the New York State Attorney General for a range of alleged abuses, centered mostly around the activities of their investment banking units and research analysts, including their relationships with CEOs. With the release of these pressure points, which were among those at the roots of the accounting scandals, CEOs may have more time to focus on operations as well as their new responsibilities without these distractions.
The post-Enron CEO carries a heavy burden.
Corporate reform legislation has curbed his power and public outrage may have buried him. The post-Enron CEO must return, to a certain extent, from the sexier world of long-term strategic thinking to the more mundane and fundamental task of ensuring the accuracy of financial statements. His watchwords should be involvement, communication, understanding and honesty, and by employing these, the post-Enron CEO should successfully bear his burden. But it will not be easy in this new era characterized by no tolerance for ignorance and no excuse for inaction.