Skip to comments.GLOBAL CROSSING THE LINE
Posted on 03/03/2002 12:25:49 PM PST by Tumbleweed_Connection
Again accountants didn't tell the truth. Again analysts conspired with the companies they were supposed to evaluating. Again investors lost billions while corporate bigwigs made out like bandits. The Global Crossing fiasco drives home a point that the Enron fiasco just implied, we can't trust the people who are supposed to help us evaluate market risk.
As this is being written, the market is down 6 days in a row over accounting worries. Analysts are desperately trying to pump up the frayed stocks that have been hammered by investors questioning the accounting practices, which have been driven for years by false and fraudulent numbers. The more these investors question, the more they will see that the emperor has no clothes. Just as you can't unring a bell, you can't put trust back into United States capital markets.
In some sense, Global Crossing is even more egregious than Enron. Global crossing Execs pocketed 1.3 Billion three years prior to the crash. Enron's bandits only managed to make off with 1 Billion during the same period. How could the executives take so much money from companies that were soon to file bankruptcy? How could they leave the people working for these companies without benefit of retirement monies or jobs while cashing in for huge money themselves? How could they not see it coming?
We have many more questions than answers and the questions are just beginning. This firm specializes exclusively in protecting the rights of investors. Despite the fact that Global Crossing and Enron are bankrupt, investors who relied on the representations of the corporate chieftains, accountants and analysts may still have rights to recover some of these losses. The class actions, which will contact all those who suffered, will only recover pennies on the dollar. Robert H. Weiss & Assoc. P.C. specializes in investor arbitrations against brokerage houses, which were under a duty to their clients to look beyond the fancy accounting at the true numbers.
The SEC is currently investigating accounting irregularities at both Enron and Global Crossing. This government agency cannot help but to be reactive. However those of you who had Global Crossing recommended to you by your broker have a right to honest, unbiased advice from that broker and the firm he or she works for. Global Crossing and Enron both spread a lot of money around Wall Street. Did they buy the silence of the big brokerage houses? Did that silence cost you?
As we try to pick up the mess from these two huge failures, we soberly realize that this is just beginning. Thousands of companies are similarly exposed to colossal declines in their stock price due to crooked accountants and conflicted brokerage houses. The government and the SEC will, by definition, offer too little too late.
A Freepathon Cheer
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