Market Currents
More details on Caterpillar (CAT): The company says the long-running accounting scheme was run...
-
Friday, January 18, 8:15 PM ETMore details on Caterpillar (CAT): The company says the long-running accounting scheme was run by several senior managers, and was deliberate and well coordinated. It involved inflating profits at a unit of ERA Mining Machinery Ltd., a mining equipment company in China that it purchased last year. CAT paid ERA as much as $734M last June. It's removed those involved and installed a new leadership team there. Responsibilities for Siwei's manufacturing operations have been moved to CAT's China operations division, while its sales and support team will report to its global mining general manager for China and Korea.
Other date
Latest Global Articles
This news story has 32 comments:
Shocking, simply shocking.................
And HP's due diligence was lacking?
CAT could be in a real nice sweet spot here. In my opinion, they are a very nice long-term hold and after the shoe drops they will be an attractive short term trade too. I think stock investors should take advantage.
Just my .02
By the way @ThomsViewPoint, you actually have a degree in finance and spew comments out like "shut CAT down"? Really? Geeez, glad you aren't running the economy, we'd all be out of work.
i assume there were many reasons why they pursued this deal.
In the end it could be a big benefit as it solidly establishes how they conduct themselves.
CLOSE 'EM DOWN!!!!
Stuff happens. Like it or not, CAT makes the best heavy machinery in the world. You don't just ignore that fact because you get burned on a stock holding. Therefore, get over it and use it to your advantage to make a few bucks. Short term hurt will most likely equal some nice long term earnings if you buy on this dip.
Shut up! You are ruining my fun.
I am using the hyperventilation rhetoric used on the banking world on a manufacturer to show the hypocrisy and idiocy of most of the rhetoric.
Having said that I would bet big dollars that CAT is bribing people because that is what it takes in Asia. And there is likely lawsuits coming out of this stupid move.
On the other hand if the stock tanks it will likely be a good time to pick it up like I did to JPM after the Whale trade.
OK fun is over. I enjoyed my time hanging with the OWS crowd and being a nut case for a few comments.
Believe what your told? Watch what you believe!! CAT did it more than once, buying cooked books for position. Unscrupulous actions with publicly held companies can have unintended consequences for the stock holder!! Best consider alternatives to CAT?
You should know better.
It's the #1 lying-culture in the World
cn ambassador Huntsman was elected to the CAT Board in 2012.
http://reut.rs/SZKe8e
Caterpillar writes off most of China deal after fraud
Dirty under the table transactions. Big beneficiary of the stimulus package paid for by American taxpayer.
Chinese equities...urrh...I have not and I won't touched it with a 10-foot pole. For those who have, it is like moth flocking to fire. Good luck!
For all we know this could be a good thing for CAT.... no position...
Of course, in this instance, it should be no surprise to anyone that the investment banker (for CAT) was Citigroup, one of the "investment advisers" for Simei was Blackstone, all American companies.
This disaster isn't the first, and sadly, won't be the last.
Citi and Blackstone; thanks for adding a comical note to this story.
Otherwise this is a cover story for a company-wide failure
that is WAAAAAY bigger than this "isolated incident."
Take a stress tab and quit hyperventilating. People here know much more than you can grasp and at this point there is a bit of fun being had here at CAT's expense. Although CAT put themselves in this position so no sympathy from me.
CAT did receive stimulus money indirectly so take off your rose colored glasses unless you work for CAT PR then you are doing your job.