WorldCom Shock Expected to Cause Stock Market Plunge

CNSNews.com ^ | June 26, 2002 | Susan Jones

[Stand Watch Listen]

(CNSNews.com) - "Shocked" reaction from Worldcom management; shock and anger from investors; and all those shock waves expected to roil today's stock market opening. Blame it all on the latest revelation of "accounting irregularities." WorldCom Inc. - the nation's second largest long-distance telephone company - announced that it improperly accounted for almost $4 billion in expenses, and it has asked the Securities and Exchange Commission to investigate. The company has fired its chief financial officer. "Our senior management team is shocked by these discoveries," said John Sidgmore, the new CEO of WorldCom. He's been on the job for two months, but he previously served as the company's vice chairman. WorldCom said it would restate earnings for 2001 and for the first quarter of 2002 to show losses, and many analysts predict the company will file for bankruptcy. In a statement, the SEC said, "The WorldCom disclosures confirm that accounting improprieties of unprecedented magnitude have been committed in the public markets."

[G.Mason]

I'm shocked....really shocked!

[kennyo]

Round up the usual suspects;make that twice the number of usual suspects

[Gladwin]

Send in Keyser Soze to clean things up.