How Parmalat Went Sour

Heres the skinny on Europes enormous fiscal scandal In the wake of the financial scandals at Enron, WorldCom (MCWEQ ), and Tyco International (TYC ), European chieftain executives smugly insisted no such fraud could ever happen in Europe. They spoke too soon. The answer foring calamity at Italian dairy-foods behemoth Parmalat has prosecutors scrambling to find out what happened to $8.5 billion to $12 billion in vanished assets. That sum makes Parmalat one of the largest financial frauds in history. Some questions and answers more or less the collapse of what was in one case considered a jewel of Italian capitalism: ADVERTISEMENT What triggered the financial crisis? Parmalat defaulted on a $185 million bond fee in mid-November. That prompted auditors and banks to scrutinize company computes. Some 38% of Parmalats assets were supposedly held in a $4.9 billion situate of America (BAC ) account of a Parmalat subsidiary in the Cayman Islands. But on Dec. 19, Bank of America reported that no such account existed. In the ensuing investigation, Italian prosecutors say theyve disc everywhereed that managers only when invented assets to get-go 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. occupation in Parmalat shares was suspended the same day. Why is the Parmalat scandal historical?

It reveals an alarming lack of transparency at one of Europes largest and closely global companies. Parmalat has 36,000 employees in 30 countries, and it does $3.3 billion in potpourri in North America, where it not only sells its trademark milk-in-a-box nevertheless also owns Black Diamond Cheese, Archway Cookies L! LC, and Sunnydale Farms dairy. Parmalats shares traded in corrective York and it sold more than $1.5 billion in bonds to U.S. investors. The U.S. Securities & change Commission has sued Parmalat for misleading investors in... If you want to get a full(a) essay, align it on our website: OrderEssay.net

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