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The Worldcom Collapse Was Caused by Corporate Corruption.

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The corporate elite should take a close look at the Worldcom collapse for a glimpse of their future.

The state of corporate corruption in rampant in America, causing financial ruin for much of the working class.

Economic times are hard for everyone in the United States and many people are finding themselves without work or the means to pay for their mortgages.

Even in these times of hardship corporations continue to spend money and lay off more employees, in an attempt to continue their corporate gains.

The businesses who are practicing these illegal tactics should look to the example of Worldcom for insight on the road that they are traveling.

The executives at Worldcom found themselves in much the same situation as many companies are finding themselves presently.

Their stock prices were plummeting and the CEO and CFO were scrambling to find a way not to save the company, but to continue their wealth.

Ebbers, the CEO of Worldcom, went to the board of directors and basically blackmailed them into loaning him nearly four hundred million dollars to cover the money that he was losing in the stock market.

The company had no choice but to give Ebbers this money or face the failing stock market, with the public information that the CEO of the company was selling all of his stocks.

In an attempt to cover up the drastic money loss, their CFO instructed the financial department to change the figures in the books to look like they were having a great year.

By moving funds from spending to investments and changing the amount of money spent on repairs, they were able to make billions in profit on paper.

When audited, the federal government was tipped off and an investigation was launched into the financial records of the company, causing the Worldcom collapse and eventual arrest of its executives.

The corporate greed that was shown by the officials in charge of this telecommunications giant, ended up causing hundreds of thousands of lost jobs with the collapse of the company.

Because of the books that Worldcom was doctoring, many individuals began spending money on the technology that was needed to increase their viability in the telecommunications arena.

The small mom and pop businesses were taking out loans and laying wires for the phone companies, in the hopes that they would make a profit in the future.

Their illegal actions caused not only the Worldcom collapse, but the collapse and job loss of these individuals as well.

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Corruption Alive and Well

You cannot help but hear the stories of corporate corruption going on in America today.

The government has decided to help out their corporate friends, by taking out loans that you will have to pay out through your taxes.

The hundreds of billions of dollars that the government is giving to these corporations were supposed to create a resurgence in the economy.

But the greed of the corporate elite has caused a situation where the nation is enraged and the economy is continuously dropping.

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Greed at it’s Worst

You can see the actions of corporate greed in the actions of companies like AIG.

Instead of spending the money they received from the government on projects to help the company and in turn help their workers, they gave hundreds of millions in bonuses to their executives.

Those were the same executives, that put the company in the situation that it is in.

The Worldcom collapse should have opened the eyes of the corporate elite, and kept them on the straight and narrow, instead they saw what happened and are repeating it today.

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