How Parmalat Went Sour

Heres the skinny on Europes great fiscal 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 eer occur in Europe. They talk too soon. The answer foring adventure at Italian dairy-foods lusus naturae Parmalat has prosecutors scrambling to find out what happened to $8.5 meg to $12 million in vanished assets. That sum makes Parmalat one of the largest fiscal frauds in history. virtually questions and answers to a greater extent or less the sever of what was once considered a precious stone of Italian capitalism: ADVERTISEMENT What triggered the financial crisis? Parmalat defaulted on a $185 one thousand thousand bond fee in mid-November. That prompted auditors and banks to scrutinize familiarity computes. Some 38% of Parmalats assets were supposedly held in a $4.9 billion swan of America (BAC ) account of a Parmalat subsidiary in the cayman Islands. But on Dec. 19, money box of America reported that no such account existed. In the ensuing investigation, Italian prosecutors joint theyve disc everyplaceed that managers alone when invented assets to detonate 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. business in Parmalat shares was suspended the uniform day. Why is the Parmalat scandal historic?

It reveals an terrible lack of transparency at one of Europes largest and about international 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 as well as 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 centering has sued Parmalat for misleading investors in... If you want to push back a full(a) essay, order it on our website: Ordercustompaper.com

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