How Parmalat Went Sour

Heres the skinny on Europes marvellous monetary 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 ever occur in Europe. They mouth too soon. The answer foring tragedy at Italian dairy-foods heavyweight Parmalat has prosecutors scrambling to find out what happened to $8.5 zillion to $12 one thousand million in vanished assets. That sum makes Parmalat one of the largest monetary frauds in history. near questions and answers to a greater extent or less the disclose of what was once considered a decorate of Italian capitalism: ADVERTISEMENT What triggered the financial crisis? Parmalat defaulted on a $185 cardinal bond fee in mid-November. That prompted auditors and banks to scrutinize club computes. Some 38% of Parmalats assets were supposedly held in a $4.9 billion brink of America (BAC ) account of a Parmalat subsidiary in the cayman Islands. But on Dec. 19, trust of America reported that no such account existed. In the ensuing investigation, Italian prosecutors asseverate theyve disc overed that managers solely when invented assets to equipoise 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. job in Parmalat shares was suspended the very(prenominal) day. Why is the Parmalat scandal historic?

It reveals an dread lack of transparency at one of Europes largest and about ball-shaped 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 any case owns Black Diamond Cheese, arch Cookies LLC, and Sunnydale Farms dairy. Parmalats shares traded in tonic York and it sell more than $1.5 billion in bonds to U.S. investors. The U.S. Securities & change guidance has sued Parmalat for misleading investors in... If you want to define a full(a) essay, order it on our website: Orderessay

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