pjk at design.eng.yale.edu
Tue Jul 2 16:03:15 EDT 2002
Subject: WorldCom Damage
The destruction caused by systemic fraud at WorldCom:
"internal auditors are uncovering further troubles. They include
double-counting of revenue as far back as 1999, debt that may not have
been previously disclosed, and booking of revenues that haven't yet
been received from long-term contracts -- issues that could push the
ultimate restatement to $5 billion or more."
"competing against WorldCom for the attention of investors and Wall
Street analysts in recent years was essentially like running track
against an athlete who is later discovered to be using steroids"
"it now appears at least possible that had it not been for comparisons
with some bad seeds like WorldCom, AT&T could still be one company"
"Of the 29 or 30 public companies that are carriers, easily 20 of them
could declare bankruptcy"
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