Worldcom Magnets

Description: WorldCom was not just the biggest accounting scandal in the history of the United States, but it was also one of the biggest bankruptcies. Considered a telecommunications giant, the revelation that it had cooked its books came on the heels of the Enron and Tyco frauds, which had rocked the financial markets. However, the scale of the WorldCom fraud put even them in the shade. This spate of corporate crime led to the Sarbanes-Oxley Act in July 2002, which strengthened disclosure requirements and the penalties for fraudulent accounting. However, WorldCom left a stain on the reputation of accounting firms, investment banks and credit rating agencies that has never quite been removed.

Description: WorldCom was not just the biggest accounting scandal in the history of the United States, but it was also one of the biggest bankruptcies. Considered a telecommunications giant, the revelation that it had cooked its books came on the heels of the Enron and Tyco frauds, which had rocked the financial markets. However, the scale of the WorldCom fraud put even them in the shade. This spate of corporate crime led to the Sarbanes-Oxley Act in July 2002, which strengthened disclosure requirements and the penalties for fraudulent accounting. However, WorldCom left a stain on the reputation of accounting firms, investment banks and credit rating agencies that has never quite been removed.