After Feng Yu released the map bomb, Nasdaq's stock fell even faster, and many people were checking to see which blue-chip company Feng Yu was talking about that had falsified its accounts.
At this time, Enron's executives began to panic. Others didn't know which company Feng Yu was talking about, but they knew it all.
These executives, at this time, used the company's internal information to speculate on their company's stocks, thus making crazy profits. Some executives even hesitate to borrow money to trade in stocks because they are so profitable.
Enron's chief financial officer also secretly set up an investment company with his friends, using the hundreds of millions of dollars raised to speculate on Enron's stock. Anyway, they were guaranteed to make a profit.
Those uninformed investors who bought Enron stock had to pay for these mistakes.
At this time, they were still rejoicing that Enron's affairs would not be discovered. So many people had not discovered it. How could Feng Yu discover it
Their company, Enron, has been selected as the most innovative company by Fortune magazine for several consecutive years. This year, it was named one of the 100 best employers in the United States. Looking at the luxurious offices decorated by the company, many people are envious. .
Under these beautiful appearances, who would know that our company has financial problems? Fortune magazine doesn't know about it, so why should Feng Yu know
He is definitely not talking about us, maybe it is Microsoft. After all, Feng Yu is a former director and shareholder of Microsoft. If Feng Yu hadn't discovered Microsoft's financial fraud, why would he have been kicked out of the board of directors
Well, that’s definitely the case!
…
The reporters couldn't interview Feng Yu, so Jack had an idea and called to make an appointment again, hoping to get an exclusive interview, even if it was just a phone interview.
To his surprise, Feng Yu actually agreed!
The TV station immediately began to promote the incident and said that it would play the interview recording immediately after the interview ended. At the same time, we started selling reprint rights to major media to make a profit.
"Hello, Mr. Feng, I'm Jack, do you remember me?"
"Of course I remember, it hasn't been long since the last interview, right?" Feng Yu said with a smile.
"It is really an honor for me to be remembered by one of the world's top richest people and one of the most talented investors. Mr. Feng, today's interview is mainly to ask about the company's financial performance. Last time you said that among blue chip stocks, Is it right to fake it?”
Jack was shouting in his mind, answer yes quickly, answer quickly.
"That's right."
Jack suppressed the excitement in his heart and continued to ask: "Then can I ask, which company is it?"
"Of course, it's Enron." Feng Yu replied.
He has ordered people to short-sell Enron's stock, and now that Enron's stock is falling, it is in his interest. Moreover, Enron's stock price plummeted, which will cause investors to distrust the entire U.S. stock market. This problem occurs in blue-chip stocks, let alone other companies.
Once a crisis of trust occurs, it is not easy to resolve.
The TV station executives on the other end of the phone were all dumbfounded. Which company? Enron? How can this be!
Enron's executives claimed yesterday that Enron's stock price would double and would bring generous returns to investors. Why did Feng Yu say today that Enron was the company that committed financial fraud
"Mr. Feng, do you have any evidence for saying that?" Jack's voice was trembling.
"Do any of you understand finance? Do you know Benford's Law? That is to say, from a bunch of real-life data, the probability of a number starting with 1 appearing is about 30%, and the probability of a number starting with 2 appearing The probability is about 17.6%, and the probability of a number starting with 3 is about 12.5%... The financial data released by Enron obviously does not conform to this law, so their financial The data must be falsified!"
Jack and other TV station executives looked at each other, confused. What is Feng talking about? Benford's Law? They have no idea what the probability issue is.
The station director was still wise and immediately called the chief financial officer of the station and asked him to explain whether this Benford's Law was reliable. But if they report it and it becomes a joke, then they will have to bear the wrath of Enron!
"Okay, I have something else to do. Let's end this interview."
After Feng Yu hung up the phone, the leaders of the TV station gathered around the CFO. The CFO nodded. Of course he had heard of Benford's Law, but this doesn't seem to be evidence, right
So they consulted some professional financial personnel and auditing companies, and then they learned that Benford's Law has not been widely adopted, but it is indeed an effective auditing method. If the data is modified, it is very likely to be detected.
How could the TV station broadcast the interview live after the interview? It was just talk. While they were contacting other media to sell broadcast and reprint rights, they were also preparing to record and produce a program around this phone call.
Of course, if you insert some ads during the period, you can earn more.
…
"Feng Yu said that Enron is the company he said was responsible for financial fraud!"
"Enron Company's financial fraud, Feng Yu said there is evidence!"
"Enron's financials do not comply with Benford's Law, and this is proof!"
…
Feng Yu once again occupied the front pages of many newspapers, and his recorded phone interview was once again broadcast by many media, letting more people know about it.
Some people believe it, but most people still don’t believe it. Many people don’t even know about this so-called Benford’s Law. Is there really any probability problem with this data
Just what Feng Yu said was certainly not enough to convince the public. After all, Feng Yu was not a professional financial person. But Feng Yu also invited two famous professors from the Harvard University Business School in the United States to give a written statement proving that Enron's financial statements did not comply with Benford's Law and must be fraudulent!
After the articles of these two professors were published, they were quickly reprinted by many media. The two of them guaranteed with their own personalities and God that what they said was true. Enron had indeed committed financial fraud!
This suddenly caused an uproar.
As a blue-chip stock, Enron's stock began to fall instantly. All investors began to sell Enron's stock, including Enron's executives.
They know the authenticity of this news very well. Once it is investigated, the facts will never be concealed.
Also panicked were Citibank, Bank of America, etc. They had frequent financial dealings with Enron. Were they really not clear about Enron's financial problems
…
Having a cold is so damn uncomfortable, I feel enervated and lethargic~~
(End of chapter)