How Parmalat Went Sour

Heres the skinny on Europes terrific pecuniary scandal In the wake of the fiscal scandals at Enron, WorldCom (MCWEQ ), and Tyco International (TYC ), European chief executives smugly insisted no such fraud could incessantly occur in Europe. They spoke too soon. The answer foring catastrophe at Italian dairy-foods ogre Parmalat has prosecutors scrambling to find out what happened to $8.5 meg to $12 trillion in vanished assets. That sum makes Parmalat one of the largest financial frauds in history. both(prenominal) questions and answers much or less the reveal of what was once considered a bejewel of Italian capitalism: ADVERTISEMENT What triggered the financial crisis? Parmalat defaulted on a $185 one thousand million bond fee in mid-November. That prompted auditors and banks to scrutinize ships company computes. Some 38% of Parmalats assets were supposedly held in a $4.9 billion depone of America (BAC ) account of a Parmalat subsidiary in the caiman Islands. But on Dec. 19, coast of America reported that no such account existed. In the ensuing investigation, Italian prosecutors word theyve disc everywhereed that managers wholly when invented assets to starting as much as $16.2 billion in liabilities and falsified accounts over a 15-year period, forcing the $9.2 billion company into bankruptcy on Dec. 27. employment in Parmalat shares was suspended the same day. Why is the Parmalat scandal historic?

It reveals an stately lack of transparency at one of Europes largest and about globular companies. Parmalat has 36,000 employees in 30 countries, and it does $3.3 billion in channel in North America, where it not only sells its trademark milk-in-a-box just in addition owns Black Diamond Cheese, arch Cookies LLC, and Sunnydale Farms dairy. Parmalats shares traded in tonic York and it interchange more than $1.5 billion in bonds to U.S. investors. The U.S. Securities & change counselling has sued Parmalat for misleading investors in... If you want to fetch a full(a) essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper