Wednesday, January 10, 2007

The current accounting and corporate scandals are the results of the overlawyerized legal system

Dear Citizen, August 2002

Government causes corporate scandals.Yet lawyer congresspeople and their followers in the media and bureaucracy are crying for more regulations for reform sake so they can obtain more revenue and power. The current accounting scandals have their origin in jibberish and numerous government rules.The corporate bankruptcies were not caused by how books were kept. The real scandal is SEC rules permitted the creative accounting which enabled companies to delay public recognition of losses for several quarters.Executives used this borrowed time to sell stock and award themselves bonuses.

New rules will contribute to future scandals.Previous reforms tied executive compensation to short-run stock price and SEC loopholed rules replaced accounting principles.They were designed (when the U.S. had a fifth of today's attorney numbers) to give accurate financial reports.It became later possible to comply with interpretive rules and still mislead investors through financial dissembling.

These are symptoms of a promiscuous legal system in which little is set in concrete.The root cause of this decay is the legal profession's unconstitutional control of government .The great irony is attorneys will receive huge sums hourly for focused time in bankruptcy proceedings, prosecutions,and subsequent mergers/acquistions and sell-offs due to the meltdown.Attorneys have received to date one billion dollars in "fees" for the bankruptcy of Enron. They have legally looted Enron more than all its crooked executives combined.


Very Truly Yours,
Harsha Sankar
908 Valley Ridge Road
Covington,Virginia24426

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