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Off-balance sheet financing.
Banks made all these mistakes without anyone knowing, partly because so much of what they were doing was "off balance sheet" financing.
On Tuesday, July 23rd, it was alleged that both banks understood that the off-balance sheet financing vehicles which they helped Enron set up were used to mislead investors, according to evidence presented to a hearing held by a US Senate committee investigating the collapse of the Houston-based energy-trading company.
In the meantime, investors should make sure that companies using off balance sheet financing conform to a few simple rules.
And for adding off balance sheet financing vehicles that are partly to blame for sinking the ship.
After the offering, Amazon will have $2.1 billion in outstanding debt, not including securitized, off the balance sheet financing.
Similar(51)
"Companies like off-balance-sheet financing".
Including off-balance-sheet financing, it is more like 10%.
Enron hired Andy to arrange off-balance-sheet financing.
(See, for example, lockdown and off-balance-sheet financing).
In itself, off-balance-sheet financing is no vice.
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