Cover -- Half Title -- Title Page -- Copyright Page -- Table of Contents -- Preface -- Acknowledgments -- Introduction -- Photographs follow page 302 -- I. The Stock Market Bubble and Enron -- 1. The Stock Market Bubble -- Financial Markets -- The Market Boom -- Raising All Boats -- Run-Up in IPO Prices -- Structured Finance -- Collateralized Debt Obligations -- New Instruments -- Commodities Futures Modernization -- Traditional Markets -- Electronic Communications Networks -- Broker-Dealers -- Merger Activity -- Fraud and Abuses -- Fraud Schemes -- Ponzi Schemes -- Electronic Fraud -- Pump and Dump Schemes -- Other Problems -- Executive Compensation -- Expensing Options -- Attacks on the Markets -- The First Attack -- The Market Reacts -- The Fed Reverses Course -- Economic Decline -- The Damage Is Done -- Deficits and International Problems -- Prelude to September 11 -- The 9/11 Attack -- Restarting Wall Street -- Coping With Terror -- 2. The Enron Corp. -- A Company Is Born -- Creating a Name -- Enron's Management -- Jeffrey Skilling -- Andrew Fastow -- Enron Values -- Pipeline Operations -- Deregulation -- Trading Operations -- Mark-to-Market -- Wind Farms -- Foreign Operations -- Foreign Problems -- Enron Growth -- Enron Online -- Electricity Market -- Broadband -- Merchant Investments -- Financial Results -- Fancy Finance -- Halcyon Days -- An Icon -- Special Purpose Entities -- Securitizing the Balance Sheet -- Cactus and JEDI -- Beneath the Mask -- Enron Fails -- The Death Spiral -- Sherron Watkins -- Accounting Disclosures -- LJM -- New Power Company -- Implosion -- Chewco -- Whitewing -- Influence Fails -- Death Throes -- Bankruptcy -- The Powers Report -- Media Circus -- Congressional Hearings -- 3. The Enron Scandal -- Enron Finance -- The SPEs -- Debt and Equity -- Nikita, Backbone, and Others -- Blockbuster.

Business Model and Disclosure -- Executive Bonuses and Stock Sales -- Employee Losses -- Lockdown -- Other 401(k) Problems -- Prosecution of Enron Executives -- Other Abuses -- Andrew Fastow -- Extorting a Guilty Plea -- Lea Fastow -- Other Defendants -- Kenneth Lay -- Jeffrey Skilling -- Bank Involvement -- Prepaid Forward Transactions -- The Prepays -- The Sureties -- Citigroup -- Liability of Financial Institutions -- Merrill Lynch -- Other Institutions -- California Trading Scandals -- California Deregulates -- Flawed System -- Enron Games the Market -- Crimes and Investigations -- Round-Trip Trades -- II. Full Disclosure and the Accountants -- 4. Full Disclosure -- Full Disclosure Background -- Disclosure History -- The Panic of 1907 -- Federal Actions -- Blue-Sky Laws -- The Stock Market Crash of 1929 -- Franklin D. Roosevelt -- Laying the Groundwork for Full Disclosure -- The Securities Act of 1933 -- The Securities Exchange Act of 1934 -- The Accountants as Gatekeepers -- Disclosure Requirements -- FASB -- Certification -- Early Accounting History -- Accounting in Great Britain -- British Accountants Move to America -- Homegrown Accounting -- Licensing Accountants -- Accountants' Liability -- Accounting Shortcomings -- Accounting Problems Spread -- Flaws in Full Disclosure -- Accounting Reform Efforts -- The Metcalf Report -- The Cohen Committee -- The Treadway Commission -- Financial Scandals Embroil the Accountants -- S&L Crisis -- Other Audit Failures -- Liabilities Mount -- The Independence Controversy -- Other Consulting Issues -- Accountants as Policemen -- The LLPs -- 5. Arthur Andersen and Other Scandals -- Arthur Andersen & Co. -- Background -- Early Years -- Andersen Audit Problems -- Andersen's Problems Mount -- Accenture -- Enron Erupts -- The Indictment of Arthur Andersen -- The Trial of Arthur Andersen -- Conviction.

Full Disclosure Fails -- SEC Role -- Accrual Versus Cash Accounting -- Secret Reserves -- Cookie Jar Reserves -- Channel Stuffing -- Statement of Cash Flows -- Pro Forma Results -- Rite Aid -- Computer Associates -- Xerox -- Critical Path and Others -- Still More Problems -- Round Trips -- Kmart -- The Tyco Scandal -- The Growing of Tyco -- Tyco Business -- Tyco's Problems Emerge -- Tyco's Problems Grow -- The Scandal Begins -- The Scandal Broadens -- Kozlowski's Indictment -- Restructuring -- The Trial -- Belnick's Trial -- 6. Fiduciary Duties and Corporate Governance Principles -- Corporate Governance -- Joint Stock Companies -- Early Corporate Governance Concerns -- Charter Wars -- General Incorporation Laws -- Modern Corporate Law -- Delaware and the Model Business Act -- The Board of Directors -- Outside Directors -- More Board Reforms -- Corporate Officers -- Shareholder Responsibilities -- Shareholder Rights -- Shareholder Voting -- Proxy Votes -- Proxy Fights -- SEC Proxy Regulation -- Fiduciary Duties -- Trustees -- The Business Judgment Rule -- Fiduciary Duty of Care -- Delaware Duty of Care -- The Fiduciary Duty of Loyalty -- Executive Compensation -- Close Corporations -- New Business Structures -- More Fiduciary Duties -- Fiduciary Duties of Controlling Shareholders -- Derivative Suits -- Fiduciary Duties Redux -- Back to Delaware -- Delaware Excesses -- For Whom Does Management Manage? -- Social Responsibility -- The Contractarians -- III. Full Disclosure Fails -- 7. Telecoms and WorldCom -- Telecommunications -- Meltdown -- Nortel -- Lucent -- Qwest -- Other Telecom Troubles -- Global Crossing -- Accounting Manipulations -- Bankruptcy -- Accounting Failures -- Reorganization -- Adelphia -- Internal Investigation -- Criminal Charges -- WorldCom -- The Company -- MCI -- WorldCom Accounting -- Bernard Ebbers -- Scott Sullivan -- Free Fall.

Internal Investigations -- Corporate Monitor -- Breeden's World -- Like Enron -- Litigation -- Criminal and Other Charges -- Ebbers's Indictment -- More Problems -- Accounting Problems in the Entertainment Industry and Elsewhere -- AOL Time Warner -- Goodwill -- Cooking the Books -- Accounting Problems Expand -- Vivendi -- Vivendi Problems -- HealthSouth -- Freddie Mac and Fannie Mae -- Lord Black -- Grocery Store Accounting -- 8. Analysts and Insider Trading Scandals -- The Martha Stewart Case -- History of Insider Trading -- SEC Creates a Crime -- The Supreme Court Responds -- Tippers and Tippees -- Insider Trading Scandals -- Insider Trading Legislation -- More Insider Trading Issues -- Insider Trading Continues -- ImClone -- Martha Stewart -- Martha Stewart's Crime -- The Stewart Circus Begins -- The Government's Case -- Aftermath -- Analysts' Scandals -- The Role of the Analyst -- Supervising the Analyst -- Market Solution -- Regulation FD -- Stock Touts -- Conflicts Grow -- Citigroup -- IPO Abuses -- Frank Quattrone -- Analysts' Settlement -- Congressional Hearings -- Mutual Fund Scandals -- Some History -- Investment Company Act of 1940 -- Mutual Funds -- Scandals and Abuses -- Mutual Fund Investment -- Market Timing -- Competition -- Spitzer's Charges -- The Problem Spreads -- More Disclosures -- Other Mutual Fund Issues -- Variable Annuities -- One More Media Event -- Hedge Funds -- 9. More Scandals and Reform -- Sarbanes-Oxley -- Arthur Levitt -- A New Chairman Arrives -- Election Issues -- Sarbanes-Oxley Is Enacted -- PCAOB -- More Regulation -- Attack of the Law Professors -- Disciplinary Proceedings -- ABA Response -- S&L Problems -- Legislation -- Role of the Rating Agency -- Some History -- Expansion of the Rating Agency's Role -- Sarbanes-Oxley Is No Panacea -- More Costs -- Executive Compensation -- Options Again -- The List Grows.

More Audit Failures -- Travel and Taxes -- Executive Issues -- More Fraud -- Pump and Dump Schemes -- Ponzi Schemes -- Other Scandals -- Fraud Abroad -- Scandal at the New York Stock Exchange -- Richard Grasso -- NYSE Problems -- Spitzer Again -- IV. Recovery and Reform -- 10. Market Recovery -- The Economy -- Demographic Changes and Finance -- Economic Conditions -- Raising Capital -- Infectious Greed -- Mixed Signals -- Japanese Operations -- Banking and Insurance -- Reparations for Slavery -- Stock Market Reaction -- The New Year-2003 -- Taxes -- Trading Places -- More on the Market -- Retirement Concerns -- Social Security -- Housing Market and Millionaires -- Financial Services -- Financing Resumes -- Banking -- Credit Cards -- Banking Consolidation -- Banking Problems -- Money -- The Year 2004 -- The Recovery Strengthens -- Market Activities -- Politics and the Economy -- Wealth -- Big Business -- Quarterly Results -- More Growth -- More Fraud -- Full Disclosure Continues to Fail -- Another Enron? -- Market Development -- Enron Continues -- More Problems -- 11. Reforming the Reforms -- The Myths of Full Disclosure -- Reforms and Power -- Full Disclosure -- Myth Revealed -- Accountants as Bloodhounds -- Auditor Liability -- Accountants Work for Management -- The Perfect Storm -- Pre-Full Disclosure Finance -- Another Myth -- Still Another Myth -- Attacks on Business -- The SEC Fails -- Fraud Before the SEC -- The American Ice Company -- Other Pre-SEC Scandals -- On the SEC's Watch -- Accounting Scandals New and Old -- Prosecutions -- Attorney General Wolf Packs -- Private Securities Litigation -- PSLRA -- Pension Funds as Managers -- Calpers Governance -- Repealing the Federal Securities Laws -- The Securities Laws -- Manipulation -- Mulheren's Prosecution -- CFTC -- Market Discipline -- Disclosure in a Free Market -- Commodity Model.

Insider Trading.