Chapter 1173: It's All Anxinda

After the WorldCom scandal was exposed, although Axinda claimed that the work of the auditors depended on the honesty and integrity of the management, no one could accept it at all.

Why are we auditing companies if they all depend on the honesty and integrity of management? Such an obvious accounting problem, after changing the audit company, it was immediately found out. An Xinda falsely called the world's top audit company, but he didn't find it?

More people would like to think that Anxinda did not discover it, but was complicit with the management of companies such as WorldCom and Enron. Although there is no evidence yet, Anxinda has been labeled as an obstruction of justice and has made fined $500,000.

A mere $500,000 is obviously a drop in the bucket for a top auditing company like Axinda. Their annual audit income is more than that. After all, they are the top accounting firm in the world. In North America alone, there are many What about regular customers?

The most important thing is the second penalty. Anxinda is not allowed to engage in related business in the United States within five years. As a result, Anxinda had no choice but to "knowledgeably" announce that they would give up all auditing business in the United States and formally withdraw from the auditing industry. If you have no customers for five years, why keep this business if you don’t quit?

Then Anxinda's offices in various places in the United States began to be withdrawn, and the company began large-scale layoffs. The number of employees has changed from nearly 30,000 to less than 3,000. The previous nearly 1,300 regular clients all terminated their contracts and switched to other accounting firms.

After the An Ran incident broke out, they had a grudge against An Xinda. Now WorldCom has another accident. Everyone says that the company audited by Anxinda has problems with its accounts. Who would dare to use Anxinda.

In fact, even if Anxinda had not been fined and not allowed to engage in related businesses, Anxinda would have fallen from the top in the world to mediocrity, but now it is even worse. From international fame, to notoriety.

In order to cover up their audit problems, Axinda destroyed some of the audit materials about Enron and WorldCom, whether it was paper reports or electronic documents, and they were all very important. Obviously, this is indeed an obstruction of justice, and their downfall today is also their own fault.

WorldCom is doomed. The stock price had just rebounded this year, but now it has started to fall again. Because WorldCom was about to go bankrupt, the stock prices of companies that had a lot of business dealings with WorldCom fell one after another.

For example, Nasdaq is one of WorldCom's major customers. There are also Time Warner, many government agencies in the United States, etc.

There are also so many creditors of WorldCom, and the accounts they lent to WorldCom are completely irrecoverable.

This also caused bank stocks to start to fall, and the stocks of investment institutions to fall, and then triggered a chain reaction,

The U.S. stock market is once again unlucky.

Of course, apart from investors being unlucky, Xiao Bushi also felt unlucky.

Damn it, he just reversed the economy a little bit, relying on American companies to sign so many contracts with foreign countries to stabilize the stock market, but in the end he just went abroad for a visit, and something f*cking happened again!

Then what about Enron or WorldCom, they were all competitors who supported him at the beginning, and they were also loyal supporters of Clinton. They co-authored with you to cheat money, and now let me take the blame?

Pension funds in many states are all invested in the stocks of companies such as Enron and WorldCom. Even if they did not invest in these two companies, but invested in other companies, isn't it because the stock market plummeted and then lost money?

The state pensions lost hundreds of millions of dollars at most, and tens of millions of dollars at the least. These are all major events that can shake Xiao Bushi's position.

Xiao Bushi wanted to clean up Shitong, but Shitong had nothing to do, and it was already doomed, so Xiaobushi set his sights on Anxinda's other clients.

If it can be proved that the prosperity of the previous session was a false prosperity, it may be able to increase his approval rate.

Under Xiaobu's strict order to investigate in depth, some problems were found among Anxinda's customers.

Of course, all are financial issues, and several Fortune 500 companies are also included. For example, Tektronix International, Kaimate, Tongyong Electric, Shile Company and more than a dozen companies, what Feng Yu didn't expect was that Microsoft was also included!

As for those other than the world's top 500, there is also one piece.

After the news broke out, not to mention the stock prices of Microsoft and other companies began to fall, the entire US stock market, including Asian and European stock markets, fell across the board that day.

Of course, the United States fell the most, followed by Europe and Asia. The average decline in Asia is about 3%, in Europe it is about 5%, and in the United States, it exceeds 8%.

This is only one day, it seems that this decline will continue for some time.

Xiao Bushi was dumbfounded, he felt like he had shot himself in the foot by lifting a rock. Originally, he just wanted to transfer the public's accusations against him to his predecessor Clinton. But now too many scandals have erupted, as well as bank fraud, securities analysts deliberately misleading consumers, etc., all of which have been reported.

At this time, the United States is in need of a new impetus to promote their economic recovery. The continuous exposure of corporate financial scandals, including scandals in banks and securities companies, has dealt a heavy blow to the economic recovery of the United States.

Even many investors have lost confidence in the entire US investment market. Without these funds, it is difficult for the stock market to rebound. How will the economy recover? Including treasury bonds, they were all sold off in large quantities.

The U.S. stock market is in the worst bear market ever!

However, the stock markets in Europe and Asia stabilized after a few days of falling, and the funds withdrawn from the United States were all invested in these places.

For Xiao Bushi's investigation, the most unlucky one is the United States!

Now people say that CEOs of companies in the United States are untrustworthy, accounting firms are untrustworthy, and securities analysts are untrustworthy. The only person who can be trusted may be God.

For those companies with financial problems, most of the CEOs also have problems. Many people say that some companies make false profits, such as Microsoft, because the American society worships CEOs and individual heroism. This is very undesirable and must be salvaged.

In order to save the market, Xiaobu Shizheng introduced another policy, requiring all CEOs and CFOs (Chief Financial Officers) of companies whose revenue exceeded one billion US dollars last year to guarantee in writing that the company's latest financial statements are correct. In this way, if the financial statements are still wrong, then they will face a civil lawsuit for fraud, or even a criminal lawsuit by the government!

Wall Street supports this approach. After this policy was introduced, the Dow Jones Index rose by more than 300 points that day.

And Feng Yu doesn't care much about these, he is meeting with the chairman of AMD Semiconductor with Ralph.

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