AFM311 Lecture Notes - Lecture 35: Chapter 11, Title 11, United States Code, Mci Inc., Financial Services
5 Dec 2015
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Explanation: worldcom case discusses unethical compensation methods between the institutions (including the external auditors, lawyers and wall street analysts) to satisfy their compensation by accepting equity holdings in exchange for collateralized low interest loans. Wall street analysts received profitable lunches to inflate worldcom"s stock: the professional risk managers" international association. Explanation: national australia bank"s traders appears to have been the desire to achieve budgeted profits and receive bonus payments. The practice of smoothing profits and concealing losses had been undertaken by the traders for over two years (1998 to 2000). The traders concealed losses by entering various types of false transactions into their trading system. Incorrectly recording genuine transactions, entering false transactions, and using incorrect revaluation rates were used to create those false transactions. News: walter hamilton, andrew tangel, stuart pfeifer. Lehman bros. elite stood to get million . http://articles. latimes. com/2012/apr/27/business/la-fi-compensation-20120427. Explanation: financial services firm, lehman brothers, filed for chapter 11 bankruptcy protection on september 15, 2008.
