Chapter 1172: Re-exposure scandal (subscription)

Feng Yu telephoned Kirilenko and Fu Rongqi to open up the shares of WorldCom.
After Ralph used BusinessWeek to expose WorldCom’s false accounting scandal, WorldCom would be completely dead like Enron.
Three days later, a new issue of Business Week was released.
The CEO of an investment institution on Wall Street is just like every day, sitting in a chair after work, grabbing new business newspapers and business magazines to get the latest business information.
He suddenly saw the cover of Business Week, an Asian.
This gave him a lot of interest, so he first opened this issue of Business Week, which saved him from huge losses.
Oh, this is the president of the Wind and Rain Holdings Group, Masahiro Kaita, the wind and rain holding group, is not the legendary company of Feng. Hey, this is the first company to be listed at the helm of the company. The company can be put into operation. He is really a genius.
Wait, what did you say at the end, Masaru Kaita said that WorldCom’s accounts were fraudulent?
He quickly turned back, and it turned out to be an article that proved WorldCom's fraud. The above data clearly shows that WorldCom has at least four billion dollars in accounts, which is four billion dollars!
He immediately grabbed the phone on the table: "The shares of WorldCom are all thrown away. Don't worry about the loss, immediately, right away!"
At the same time, many people who got this news are also selling WorldCom stocks. Think about Enron’s foresight, staying ahead of WorldCom? Then wait for WorldCom stock to become waste paper!
The securities regulator of the country also noticed WorldCom, which has a debt ratio that is too high. The legend of small fish eating big fish again and again, relying on loans and new shares, is now not a small horse-drawn carriage, but a small horse-drawn train!
Today, they also noticed the article published in Business Weekly. It said that WorldCom provided a huge loan of 366 million US dollars to its ceo Ebos, but Ebos has no mortgage. This loan is obviously problematic. It is Ebos's full pocket.
At the end of last year and the beginning of this year, the large engineering cost of WorldCom's expansion of the telecommunications system was not recorded as normal cost, but instead it was treated as capital expenditure. Such an accounting skill brought nearly 3 billion US dollars to WorldCom. Huge profits.
Last year's nearly one billion US dollars of profits and about $300 million in the first quarter of this year's profits are also illusory, and they actually lost a lot.
Don't say anything else, a lot of loans, so that the interest they need to repay every day is not a small amount, let alone the general business, where is the profit?
If it is really profitable, will they again apply for a $2.5 billion loan to twenty-five banks?
If other magazines broke the news, others would still wonder if there is any problem inside. But if it is the "Business Week" burst, everyone instinctively believe.
What's more, that piece of evidence is not evidence: WorldCom's audit company, like Enron, is also An Xinda.
In short, these two false accounting scandals have brought almost complete disaster to An Xinda. They were the world's top auditing companies. Now, no one dares to ask them.
If you have asked An Xinda, then others are not skeptical that their company has also made false accounts? Even if you prove it is not, others may not believe it.
On the second day of BusinessWeek’s scandal, the US Securities and Exchange Commission announced an investigation into WorldCom’s past mergers and acquisitions, and also investigated the company’s $366 million loan to EBOs.
And they immediately filed a lawsuit against WorldCom for civil fraud, and those who have false accounts have to investigate in detail. Perhaps there is more to it.
The small cloth that is going abroad for a visit is unstoppable. This is the world's largest Internet provider. The second largest long-distance telephone company in the United States has developed by fraud. How do other people think of their country?
When he took office, he broke out of the Internet bubble and let the economic recession of the country of Mexico become a bad one. As a result, the good economy of the previous one was completely an illusion. These were all companies that did not know the so-called company.
If there is no company like Enron and WorldCom, will the network have such a big bubble? Is he so embarrassed now? In order to develop an economy, looking for country cooperation, this president is too wrong!
WorldCom’s credit rating was quickly adjusted to the lowest level. This level said the loan, it has been said that the company is going to die!
At the same time, the 25 banks that originally intended to loan World Bank’s loan of US$2.5 billion also jointly accused WorldCom of fraud. Even the banks that had not recovered some of the previous loans also joined the company and believed that WorldCom passed Inflating profits to defraud their loans.
WorldCom's share price dive faster than Enron. It also shows that investors are already clamoring for things like fraudulent accounts.
However, in a few days, several auditing companies investigated it again. Shitong Company had two wrong accounts. Before the proof of Masaru Kayota, all of them proved to be true. The accounts of WorldCom have been increased. Nearly eight billion dollars!
WorldCom's share price has quickly dived, from the previous 70 billion US dollars, has shrunk to 20 billion US dollars, and is still rapidly falling.
Everyone formed a centralized sell-off, and many people’s stocks could not be thrown out at all, but WorldCom’s share price kept falling.
WorldCom quickly replaced the new ceo, but it didn't help. Although this new ceo claims that they have negotiated and received about $2 billion in financing, they will continue to provide high quality services to their customers, but no one believes.
Now that the penalties decided by WorldCom have not yet come out, WorldCom’s share price has fallen again and has already fallen below the issue price.
Even below the real value of WorldCom, after all, WorldCom still has a lot of fixed assets. The value of these assets is worth more than two billion dollars. Unfortunately, WorldCom has higher liabilities, these fixed assets are Not enough to cover the debt.
As a result, WorldCom applied for bankruptcy protection, which is faster than Enron.
Feng Yu, they bought Shitong's stocks and closed their positions in a timely manner. This time, they made a small profit. If it is not for WorldCom's own debt ratio is too high, they should have earned more.
This time, Kamen Masaru and Ralph also made a fortune. At the same time, some of the shareholders of Business Week have also made a profit. It was also their participation that allowed Feng Yu to fail to pass the WorldCom stock.
However, it does not matter, "Business Weekly" issued an invitation to Feng Yu, invited Feng Yu to become its independent director, and even promised that some shares can be sold to Feng Yu.
To put it bluntly, those shareholders want to tie up with Feng Yu, I hope that next time there is such a good money-making business, Feng Yu can bring them!
What Feng Yu did not expect, the scandal of false accounts, the scope of the spread began to increase.
... (to be continued.)