MGM101H5 Study Guide - Final Guide: Bernard Madoff, Corporate Social Responsibility, Andrew Fastow
thomasjalarcon and 38454 others unlocked
25
MGM101H5 Full Course Notes
Verified Note
25 documents
Document Summary
Enron increased profitability by manipulating their balance sheets. Enron wanted to expand but 1) enron needed to take on huge amounts of debt to pay for it, and (2) most of these businesses turned out to be unprofitable. Enron was pressured to increase share prices. When enron"s actual performance failed to live up to these expectations, management, led by president (and, briefly, ceo) Jeffrey skilling, and cfo andrew fastow, began to manipulate. Madoff was using money from new investors to reward older investors, while at the same time siphoning off significant amounts of money for him. Equally concerning was the fact that reputable financial institutions, credible hedge funds, and prominent investors were included among the ranks of those swindled by madoff. Enron, worldcom, tyco and bernie madoff are companies performed. These types of situations are not limited to the private sector; both government and the not-for-profit sector have had their challenges. For example: the provincial government and ontario lottery.