Rus News Journal

Criminal business - reading matter

Having chosen from The Washington Post, Forbes and Vanity Fair the brightest publications concerning a new attractive genre - real stories of crimes because of business, an observer of magazine The New Yorker James Surovetski has created an entertaining collection: portraits of the fallen leaders and loud echoes of their fall.

Enron, Worldcom, Adelphia, ImClone, Tyco, Martha Stewart, Arthur Andersen and many other companies have during the last years received the share of negative responses in a press. Idea, a red thread passing through all these stories: men and women have managed to reach the top, having constructed the multimilliard corporations practically of anything, and then and have destroyed their scandalous behaviour.

James Surovetski asserts that similar plunder of corporate America greedy CEO is “ Failure of all system in the same degree in which it is a failure of separate persons “. The first part of the book - “ Vizionery, profiteers and swindlers: CEO and games in which they play “ - the original gallery of portraits of managers of the highest rank, whose abusings have very much cost much both to the companies, and their shareholders. With colourful details it is told, how the world`s largest companies rolled down in abyss of troubles from - that the general directors who have wallowed in swindle vainly tried to constrain impracticable promises. Two histories are devoted WorldCom, Berni Ebbersa which have failed because of inability CEO to supervise over the huge company collected by it in a pursuit for all new acquisitions.

the Second part of the book - “ Who watches for watchmen? “ investigates the corruption facts on Uoll - strit and “ grey “ schemes of accounting which have led to falling of such companies, as Arthur Andersen. Investment banks have not protected investors from the companies which have ceased to be reliable. Instead of giving impartial advice and to represent interests of investors, bankers approved investments in doubtful corporate stratagems. In the conditions of the scale conflict of interests existing systems of accounting have ceased to constrain a top - managers, and actually helped them to deceive shareholders and investors. One of authors of Noam Shejber considers that mechanisms which should provide accounting self-regulation, do not work in general.

In last part of the book - “ What was not and how it to correct? “ wider sight at a problem of corporate corruption is presented. Here those tendencies under which action all these financial troubles became possible are analyzed. Digging in a dirt of corporate scandals, authors search for ways of returning capitalist (read: Market) economy on a healthy way when it not only enriches separate people, but also benefits a society. Along with stimulation of vigilance of investors and revaluation of use of options in compensatory packages CEO authors offer reforms at legislative level, and also specify, in what direction Uoll - strit and all corporate America should change.

Still recently to make the book devoted exclusively to crimes and abusings because of business, happened for a year, would be a difficult problem. However 2002 was rich on the publications devoted to corporate scandals and frauds so to James Surovetski was from what to choose. Having united under one cover numerous publications about crimes because of business, he has managed to transform the dry facts, difficult schemes and intracorporate hearings into the fascinating and useful book.

*Οεπεβξδ the review prepared Soundview Executive Book Summaries (www. summary. com; one of leaders web - resources for a top - management).

Best Business Crime Writing of the Year
Surowiecki J.
Random House, 2002
the Cover/ 253 with.