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CMS's CEO Steps Down Amid 'Round-Trip' Probe
Wall Street Journal (paid subscribers only) ^
| May 28, 2002
| Chip Cummins
Posted on 05/28/2002 3:14:49 AM PDT by snopercod
Edited on 04/22/2004 11:46:32 PM PDT by Jim Robinson.
[history]
CMS Energy Corp. said its longtime chief executive stepped down, following disclosures that the energy concern's trading business had conducted large-scale transactions that artificially boosted its trading volumes and revenue.
The Dearborn, Mich., company said Friday that William T. McCormick Jr., who had led the company since 1985, resigned. The company said its board had elected Kenneth Whipple, a retired Ford Motor Co. executive, to succeed him as chairman and chief executive as it looks for a permanent replacement.
(Excerpt) Read more at online.wsj.com ...
TOPICS: Business/Economy; Crime/Corruption; Extended News; News/Current Events; US: California; US: Texas
KEYWORDS: arthuranderson; calpowercrisis; enron
No time to comment this AM...
1
posted on
05/28/2002 3:14:49 AM PDT
by
snopercod
To: Robert357;Dog Gone;Ernest_at_the_Beach
flag
2
posted on
05/28/2002 3:15:36 AM PDT
by
snopercod
To: snopercod
Artificially pumping up volume to cover declining revenue for a quarter in hopes that things will turn around, and then getting company officials to spin on the head of a pin with financial talking heads...well it's all part of the grand illusion. It looks like economic terrorist mastermind, Arthur Andersen's tentacles extended everywhere, with willing CEO's acting as cells in the field.
3
posted on
05/28/2002 3:41:31 AM PDT
by
PGalt
To: snopercod
CMS said it would reissue its financial statements for 2000 and 2001 to eliminate revenue reported from the trades. I suspect that the outside big5 sorry big 4 auditor directed the restatement of the financial books. I also suspect that if A Anderson had not tanked because it looked the other way CMS's CEO might still be directing things.
4
posted on
05/28/2002 5:54:38 AM PDT
by
Robert357
To: snopercod
Again, I'll point out that this practice isn't as bad as it sounds. It shouldn't be permitted, but the ONLY affect it had was to make the company look like it was trading more electricity than it really was.
It's as if a real estate agent sold her house to her brother who sold it back at the same price every day all year. Then the agent can brag that she sold hundreds of houses last year. The fact that she got no commission and had no expenses on the sham transactions is a "minor detail," LOL.
5
posted on
05/28/2002 6:06:34 AM PDT
by
Dog Gone
To: Dog Gone
But it gives the public a bad perception which they can be "instructed to see" by skillful politicians using the art of Spin!
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