Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Magazine

Table: Collateral Damage


Whatever the outcome of the trial, the Justice Dept.'s indictment of Arthur Andersen has devastating implications

ANDERSEN'S DEMISE

No major professional-services firm has ever survived criminal indictment. The vast majority of Andersen's 85,000 workers in the U.S. and overseas are innocent bystanders. Now, the livelihoods of many of them are at risk.

ACCOUNTING REFORMS

A remade Andersen, along the lines of former Fed Chairman Paul Volcker's plan, would have set a new standard for the industry. Now, rivals will feel far less pressure to adopt Volcker's reforms.

LESS FOR VICTIMS

Andersen or an acquirer could have set aside hundreds of millions of dollars for Enron shareholders and ex-staffers who lost billions of dollars in retirement savings. Now, there may be little, if anything, for such victims.

CHAOS FOR CLIENTS

Andersen's 2,300 clients, which include 17% of U.S. public companies, must worry about switching firms. Finding a new auditor with the expertise to deal with complex, unfamiliar financial issues could prove disruptive.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus