On September 30, it has been ten days since Blackstone Fund released the investigation report of Enron.

But the storm it caused not only did not stop, but became more and more intense. More and more shady scenes were exposed, more and more people were implicated, and the losses and impacts were also increasing.

The first to be affected is the British consortium led by Li Jiacheng. They spent a huge amount of HK$260 billion to acquire Enron. Now, with the plummeting share price of Enron, they have lost all their money.

Involved by this incident, the stock prices of listed companies under the British consortium also began to plummet. Because investors were worried that the Anran incident would cause the rich to go bankrupt due to excessive debt, banks would definitely use the shares they held to pay off their debts. In order to facilitate cash out, they would definitely sell their stocks, which would cause the stock price to plummet.

To take a step back, even if these rich people will not go bankrupt, they will still bear heavy debts, which is quite unfavorable to the company's development. Therefore, it is better for them to leave first when things are not in harmony.

This caused the stock price of the British consortium to plummet. The stock price, which had previously risen due to the successful acquisition of Anron, has not only fallen back to the starting point, but also continues to fall. It is lucky to see if the momentum does not fall by half.

Because the money used by the wealthy to acquire comes from banks such as Huifeng, Standard Chartered, and Baotong, now seeing that Enron is a scam, the bank's loans are facing great risks and may not be completely recovered, resulting in huge losses.

Therefore, the stocks of Huifeng, Standard Chartered and Baotong Bank also fell accordingly, and some branches even experienced squeezing incidents, which made Huifeng, which had been stormy for a while, become increasingly dying.

...

The second one was the serious victim of Enron. Before the outbreak of the Enron incident, it was the 16th energy giant in the world's top 500, ranked seventh in the United States, and is the largest natural gas supplier in the United States, accounting for 20% of the market. It has been rated as the most innovative company in the United States for six consecutive years.

Such a star company is naturally favored by investors, and there are many Wall Street giants such as Merrill Lynch, Goldman Sachs Investment Bank, and Lehman Brothers among investors.

They manage their finances for thousands of users and buy billions of dollars in Enron's stock. Now with the plummeting Enron's stock price, these investment banks have suffered heavy losses. More than one billion or even billions of dollars have evaporated, and the savings of thousands of people throughout their lives have gone into nothing.

Goldman Sachs, Merrill Lynch and Lehman not only face endless accusations from customers, as well as investigations from the US Financial Regulatory Bureau, but also face the terrible reality of their stock price plummeting. It can be said that it is also unlucky.

Affected by this, the three major indexes of the United States, Nasdaq, S&P and Dow Jones have all leaked. Many stocks related to investment banks, energy and electricity have been sold out by investors.

Because people are worried that the Anron incident is probably not an isolated case, and there are also a large number of so-called "star companies" that are simply a scam. Therefore, people are in a panic and they sell and cash out as soon as there is a turmoil. This leads to the US stock market being blew up and investors are completely disappointed.

...

Among the many victims, one has a special identity.

Because it is both a victim and a perpetrator, that is Anderson, the world's largest accounting firm.

The Blackstone Fund's investigation report clearly pointed out that the main reason why Enron's scam was able to go on for many years but was not discovered was that Anderson helped it back.

As the world's largest accounting firm, Andersen provides services to many companies and has a high reputation and influence in the industry, so people are willing to believe it.

However, for his own benefit, Anderson has let Enron Company go for many years, not only ignoring its various scams, but also using its own reputation to guarantee it, which makes Enron's scam successful.

Now, Enron's scam has been exposed, from a star company that everyone loves to become a liar who is scolded overnight. At the same time, it also falls to the bottom of Andersen Accounting Firm's credibility.

Not only because it helps the scam to cheat, but also because after the scam is exposed, it not only fails to wake up in time and turn to the light, but instead actively destroys evidence and conceals the truth, making mistakes again and again.

This practice is naturally a particularly disappointing thing.

According to information disclosed by the US Department of SF, after the Blackstone Fund investigation report was exposed, Anderson Accounting Firm destroyed thousands of pages of documents related to Enron in order to cover up the truth. Therefore, the head of the US Department of SF is sued by the US Department of SF.

In order to avoid being implicated, Andersen branches in other places have ended their cooperative relationships with Andersen and switched to other accounting firms.

For example, Anderson Accounting Firms in Hong Kong and Mainland China chose to join Puhua Yongdao, which is also the world's top five accounting firms; Anderson from Russia, Star Singapore, Non-Rolipino, and Taiwan joined Ernst & Young; Anderson from Thailand, Fuso joined KPMG.

These branches are actually in a cooperative relationship with Anderson's parent company, which is similar to a franchise partner. They originally wanted to support the big tree to enjoy the shade, but unexpectedly, the trees are now scattered.

Anderson Accounting Firm was founded in 1913 and has a history of 86 years. It was once favored by the industry for its honesty, trustworthiness, responsibility for customers and the public.

But now, Anderson's brand has become foul, and customers no longer trust it. In order to avoid its scandal, they have canceled their cooperation with Anderson.

In addition, previous partners have changed their families, which has caused the world's largest accounting firm to fall apart in less than two months.

Although it does seem miserable, considering that the whole thing is caused by it, it can be said that it is a self-inflicted.

...

The most unexpected victim was the current US President Bill Clinton.

Because the Enron incident had too great impact, the losses caused were 100 billion US dollars, and the public grievances were huge, so the Republican Party of the United States took the opportunity to criticize Bill Clinton.

He believes that it is the plan he proposed after he came to power that was too loose and lacked supervision that led to the occurrence of the Anron scam. Therefore, he needs to take responsibility, apologize to the public, strengthen supervision, and prevent such incidents from happening again.

After Bill Clinton came to power, he did implement a loose economic policy, and the Federal Reserve cut interest rates many times. Although these cheap funds have promoted the activity of the US economy, the lack of supervision has also laid hidden dangers for the US economy. For example, the Internet bubble in 2000 and the outbreak of the subprime mortgage crisis in 2007 are all closely related to the wrong economic policy.
Chapter completed!