Wednesday, January 04, 2006

Conspiracy of Fools: A True Story

This is a pretty good read.
Kurt Eichenwald gives a detailed account of what happened at Enron. And as someone who has to deal with Sarbanes-Oxley or SOX compliance, I am most interested to know who the heck led to all those stinky SOX compliance. Although it claims to be "A True Story," one has to wonder about the dialogues used in the book, was the author there, so he knows exactly what was said among the principals involved? I am just wondering aloud here. The irony is while the big law firm, accounting firm and top management messed up big time, the file and rank and middle management suffer the most in the aftermath SOX compliance. While Arthur Anderson messed up big time and ceased to exist, SOX actually creates a new revenue stream for other professional firms to do SOX compliance jobs.
Anyhow, the book seems to place Andrew Fastow, the CFO as the chief architect of the Enron failure. Ken Lay, a ph.D in Economics, and Jeff Skilling, a former star at McKinsey, were protrayed as too ignorant or even a cry baby on the edge of a nervous breakdown.
Ken Lay, I think, is scheduled for hearing some time soon later this month.

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Civil War (2024)

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