Friday, February 01, 2002

Enron proves that any corporation's financial statements audited by Arthur Andersen are worthless as a guide to the financial status of the corporation. Any institutional investor who invested in the shares of a corporation audited by Arthur Andersen would be investing in a corporation with, in effect, unaudited financial statements. Any investment or pension fund manager with a fiduciary duty to invest prudently would leave himself open to a massive lawsuit if he was stupid enough to invest in such a corporation. This fact alone should signal the end of Arthur Andersen.