The new CEO of bankrupt crypto exchange FTX also helped clean up one of corporate America’s biggest collapses 20 years ago: Enron. History isn't repeating, per se, but it rhymes.
: “The smartest guys in the room. Not just financial error but — certainly from the reports — whiffs of fraud," he said. "Vast explosion of wealth that nobody quite understands where it comes from.”The Enron bankruptcy not only helped transform, for a time, the way Americans viewed public companies and the stock market but also led to the passage of the Sarbanes-Oxley Act in 2002, a law that tightened up accounting rules for public companies.
Those tighter rules made it harder for companies to go public, leading to fewer IPOs in the ensuing years and pushing companies to seek more capital from the private markets .The penalties that Enron executives and its accounting firm Arthur Andersen faced put them both out of business and destroyed thousands of jobs, leading to a notion in the U.S. that overly harsh penalties against corporations could hurtPublic sentiment and regulations.
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