Finance paper Assignment Example | Topics and Well Written Essays - 750 words - 1

pay paper - Assignment ExampleOn June 25, 2002, one of the largest telecommunications company, WorldCom announced that its revenues in first quarter has been enlarged by over $3.8 billion. This announcement came as surprise to the investors in financial markets. The company filed bankruptcy on July 21, 2002. Prior to the announcement, the share price of the company soared as high as $64.50/share in mid-90s which came down to less than $2/share. Similar to case of Enron, the retirement benefits and savings plan of WorldCom heavily suffered as by end of 2000 the company had 32 percent of $642.3 million of retirement funds in bring of stock options.Immediately after the emergence of the scandals, Bush Administration announced that will disqualify WorldCom prepare all existing Federal Government contracts. Further, the House Committee on Financial Services on with Senate Committee on Housing, Banking, and Urban Affairs investigated the cases related to recent method of accounting s candals of WorldCom and Enron. In response to these listening SOX (Sarbanes-Oxley Act) was enacted on July 30, 2002. The act recommended establishment of Public Company Accounting Oversight Board that develops standard accounting for audit and increases corporate social responsibility.The mortgage meltdown has been believed to actually begin with flare of US admit bubble in 2001 that sharply increased to maximum in 2005. The bubble is an economic condition that occurs in local or global real estate markets where the valuation of house properties reaches unrealistic and unsustainable levels.The research has erect that many economists believed that US housing bubble was mainly caused from historically low interest rates. After the burst of dot-com bubble in 2000 and then consequently following recession, FED cut short bourn interest rates to from 6.5 percent to 1 percent.The US subprime borrowing