The WorldCom Scandal - The Full Story | Lies, Expenses, and Accounting | History in the Dark

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  • Опубліковано 24 чер 2024
  • The fall of WorldCom resulted in the largest bankruptcy in American history at that time, just a year after Enron which held that title. WorldCom's bankruptcy was oddly similar in terms of what the company was trying to do: inflate their stock price. Though their method for doing so was different and much simpler.
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КОМЕНТАРІ • 33

  • @MN-zi6hb
    @MN-zi6hb 17 днів тому +12

    Credit to the Audit team for holding their ground to get to the truth.

  • @TheGs4_4449
    @TheGs4_4449 17 днів тому +9

    I’d never in my life expect too hear Darkness say “that’s pretty sus”, nor I’d expect him to have a family guy clip/meme in his video to use as an example
    I love it

    • @ALCO-C855-fan
      @ALCO-C855-fan 17 днів тому +3

      Yep. Also 3.8 billion DOLLARS?!?!?!
      You could as well restore all Y6b's with that!!!

    • @TheGs4_4449
      @TheGs4_4449 17 днів тому +2

      @@ALCO-C855-fan Yep!

    • @ALCO-C855-fan
      @ALCO-C855-fan 17 днів тому +3

      @@TheGs4_4449 Aren't you that S1 guy from DA?

    • @TheGs4_4449
      @TheGs4_4449 17 днів тому +2

      @@ALCO-C855-fan …you mean the one on r/trainmemes? Yes

    • @ALCO-C855-fan
      @ALCO-C855-fan 16 днів тому +3

      @@TheGs4_4449 I mean don't I know you from DeviantArt?

  • @Billblom
    @Billblom 17 днів тому +10

    And you can't miss the rail connection with one of the biggies: Sprint. Formed when Southern Pacific's signal system had excess capacity due to use of Fiber, rather than old style copper.... It was named "Sprint" to imply Fast, and folk Southern Pacifc into the name.....

    • @alexhajnal107
      @alexhajnal107 17 днів тому +2

      The name was originally an acronym for Southern Pacific Railroad Internal Networking Telephony.
      Edit: The name was selected via a contest when the subsidiary was shifting its focus from internal railroad operations to the commercial market and decided a rebrand was in order.

    • @Billblom
      @Billblom 17 днів тому +4

      @@alexhajnal107 Yup. and implied fast... after all the competition was all on Microwave for long lines. The big problem for Sprint: since it was under their track, it only was really available near the ROW for the first several years. Having it as an alternate Long Distance backbone was great competition for AT&T

  • @alexhajnal107
    @alexhajnal107 17 днів тому +8

    Yes, quite impressive, the fraud, the determined investigator, and the video.
    On a related note, you might be interested in looking in to Nick Leeson and the downfall of Barings Bank.

  • @ALCO-C855-fan
    @ALCO-C855-fan 17 днів тому +5

    Founded in 1985. Like ENRON. What a curse...

  • @michaelsullivan2361
    @michaelsullivan2361 17 днів тому +3

    You should do an analysis of Global Crossing & Gary Winnick.
    I had the displeasure of being a cog in that machine.

  • @ALCO-C855-fan
    @ALCO-C855-fan 17 днів тому +3

    3.8 billion DOLLARS?!?!?!
    You could as well restore all Y6b's with that!!!

  • @dcooper1535
    @dcooper1535 14 днів тому +1

    Castle Bank & Trust in the Bahamas was the classic offshore bank account scam, losing many people - including noteworthy celebrities - a lot of money.

  • @alhasanbeitelmal6218
    @alhasanbeitelmal6218 18 днів тому +3

    Impressive

  • @andrewbowen4544
    @andrewbowen4544 17 днів тому +3

    Darkness you've done Penn Central, Enron, Blockbuster now WorldCom what about PanAm

  • @robertwilloughby8050
    @robertwilloughby8050 16 днів тому

    The Vehicle & General collapse is interesting. This is just a slow, sad, not really anyone's fault, retreat from greatness, from their glory days in the mid 60's to their collapse in 1972. Oh, and it's another insurance company. Yeah, there was a bit of a problem with UK insurance from about 1960 to 1975....😅
    Edit - Someone (thank you for this, it's a great simile!) compared business crashes to the worst railway engines.
    This is the British Rail Class 07 of business failures.

  • @manicmechanic448
    @manicmechanic448 17 днів тому +1

    The math didn't math.

  • @pkat
    @pkat 17 днів тому +2

    Nice! But this barely makes the top 10 business frauds in US history. How about
    FTX
    Theranos
    Ivan Boesky
    Bernie Madoff
    Wells Fargo

    • @JamesAllmond
      @JamesAllmond 17 днів тому +4

      This was before all those thieves (except may be Madoff who was just s con man) and the reason for SOX laws...
      that were supposed to prevent those thieves and eventually caught them...and has made life miserable for anyone in IT or Accounting working for large companies in the US...

    • @michaelmoses8745
      @michaelmoses8745 16 днів тому +1

      The guy will probably get there eventually. I shudder to think about understanding all the documents in the bankruptcy. There's quite a lot of them.

  • @ALCO-C855-fan
    @ALCO-C855-fan 17 днів тому +2

    Darkness, who would you personally say is worse? ENRON ir Worldcom?

    • @HistoryintheDark
      @HistoryintheDark  17 днів тому +4

      Worldcom had more money involved, but Enron had been corrupt for longer so... Pick your poison.

    • @ALCO-C855-fan
      @ALCO-C855-fan 17 днів тому +3

      @@HistoryintheDark I think they're equally terrible. Both in a different thing. If Worldcom is the BALDWIN RP 210, ENRON is the British Rail class 21. That's how bad they are.

    • @dcooper1535
      @dcooper1535 14 днів тому +2

      Deregulation of utilities really led to a mess there.

    • @ALCO-C855-fan
      @ALCO-C855-fan 14 днів тому +2

      @@dcooper1535 And the upper hands becoming scammers.

    • @ALCO-C855-fan
      @ALCO-C855-fan 14 днів тому +2

      @@HistoryintheDark Good word. They're both poison. The Baldwin RP 210 and Beitish Rail class 21 of the stock market.