A Look at the Week in WorldCom

Worldcom shocked Wall Street this week with a revelation of accounting fraud that resulted in a huge overstatement of profits. TheStreet.com writers and RealMoney columnists dissected the event and its effect on the financial markets and beyond.

Big Three Telcos Will Gain From WorldCom's Loss

James Cramer

A bankrupt company that could disappear doesn't have much to offer customers.

Why WorldCom Didn't Cause a Collapse

Paul Kedrosky

The market's reaction was spot on: While the alleged fraud is dumb, it isn't all that smelly.

An Angry Public Takes Revenge

James Cramer

Fed-up with managed earnings, investors are relieving their frustrations indiscriminately.

WorldCom Not End of World

Aaron Task

The markets looked primed for a washout, but once again, those expecting disaster were disappointed.

EBITDA Not Spelling It Out for Investors

Herb Greenberg

Too many companies confuse the formula with cash flow.

Massaged Earnings Make for Market Mayhem

Herb Greenberg

WorldCom provides the latest example of why we need standards for earnings reports.

Hold the Phones

James Cramer

Verizon, BellSouth and SBC merit a look in this WorldCom frenzy.

WorldCom: Don't Call It a Collapse, Just a Crisis

Cody Willard

This fraud, while awful no matter how you slice it, highlights the problem with our focus on EBITDA.

WorldCom Bondholders Are Sunk Too

James Cramer

Those looking for a nice play in the telco's bonds are in for a nasty surprise.

WorldCom Executives Are Subpoenaed

TSC Staff

Two House panels open probes into the debacle.

Lightbridge Warns of Second-Quarter Shortfall on WorldCom Woes

Michael Dunn

The company said it will miss estimates and cut jobs because of WorldCom exposure.

The New Scarlet Letters: EBITDA

Kenneth Li

Sectors like cable and media that generally use the metric feel investors' wrath.

Small Investors Hold Their Noses but Won't Abandon Stocks

K.C. Swanson

Corporate corruption is turning them off, but they don't see a better alternative.

WorldCom's Legacy May Be a Chernobyl for Investors

Aaron Task

The fallout from WorldCom is likely to poison those holding its debt.

Losers Great and Small in WorldCom's Wake

Matthew Goldstein

Banks, bondholders, investors and employees will all be worse off.

Sifting for Gold in the WorldCom Silt

Tim Arango

Telecom may never be the same after the fall of a titan.

WorldCom Fraud Centered on Connection Costs

TSC Staff

The company's ousted CFO defended the practice to the end.

WorldCom's Watchdogs Were Asleep

Adam Feuerstein

Investors will be asking what the directors were doing during a $3.8 billion accounting fraud.

Fund Managers Don't Let Massive Fraud Get Them Down

Beverly Goodman

WorldCom's $3.8 billion debacle means just another tricky day for these veterans.

Timing of Downgrade Is Latest Grubman Howler

Diane Hess

It was probably just coincidence, but the Salomon analyst manages to stay in the limelight.

Anatomy of an Accounting Gimmick

Rebecca Byrne

The WorldCom case show how EBITDA can be used to cover up reality.

Banks Battered by Potential WorldCom Exposure

Matthew Goldstein

Investors worry lenders will be left holding the bag if the telco files for bankruptcy.

Some Think It's the Tip of the WorldCom Iceberg

Tim Arango

But then again, it probably won't matter too much to shareholders.

WorldCom Woes Ripple Into Networkers

Kenneth Li

Some argue the reaction is out of line with the telco's importance as a customer.

Where Will the WorldCom Damage End?

Jim Seymour

Seymour fields questions on who else gets hurt, who stands to profit, and how deep the corruption goes.

WorldCom Won't Be the Last Scandal

Herb Greenberg

The bombshell is the latest blow to confidence. But there will be opportunities in the blowoff.

WorldCom Tilts Toward Abyss

TSC Staff

The company inflated an accounting measure of cash flow by $3.8 billion over the last five quarters.

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