Game Changer

Enron was a game changer in the business world in 2001. It changed the way companies are regulated by the SEC and how they keep their books due to SOX being passed shortly after. In this case what happened to Enron is looked at by the majority as a bad moment in business world; the biggest bankruptcy to date. Sometimes being a game changer though is a good thing. Without the collapse of Enron other companies shady accounting practices would never have come to light and in turn could have caused greater financial turmoil than Enron did. Sometimes the bad needs to be brought to light to see some good that could come from the situation. The collapse of Lehman again was a game changer that needed to occur so other companies could realize their faults and so the government could step in. Although this again was looked at as a financial tragedy and was one of the sparks of the Great Recession this essentially needed to happen so other financial services firm could realize that they had serious leveraging issues. Although it is hard to point out good things that have come from this recession it is easy to say that companies have realized their faults, the government has stepped in to curb the outrageous profits of the “too big to fail” banks and individuals in general have put their spending and financial decisions under a microscope.

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One Response to Game Changer

  1. MDHarbin says:

    As the business world continues to advance with new innovative ideas, the regulators will continue to struggle to monitor the legality of business activities of game changers because of the failure of imagination. Enron was based on energy sector innovation and the cutting edge of accounting practices, but eventually failed when the companies imaginations became unrealizable. Karl Weick says, “imagination gives form to unknown things” and it is nearly impossible to predict the future, but maybe in the next few years the benefits of this recession will be more obvious.

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