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12 of the Most Infamous Bankruptcies

businesspundit.com — Some companies fail by honest error. Far more interesting, however, are the stories of companies that were driven into bankruptcy maliciously, through fraud, corruption, or scandal. Here are 12 of the most infamous such bankruptcies.

Who dugg this? Made popular Jul 15, 2009

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  • lovemorgul, on 07/15/2009, -1/+9Pretty bad when a finance company goes broke.
  • pathouston22, on 07/15/2009, -0/+3They also stole WaMu in the fact that the shareholders got NOTHING for their stocks. Shareholders are part owners. One of the biggest heists in the history of the world.
  • darkened, on 07/15/2009, -2/+5Lehman brothers bankruptcy was a result of the REST of wall street creating debt objects full of garbage and then treating them as AAA rated bond paper with collusion from the ratings agencies. This resulted in Lehman Brothers underwriting Credit Default Swaps at GROSSLY OVERVALUED levels. When the underlying objects all tanked, Lehman brothers couldn't cover the losses due to the misrepresentation. This is the exact same story as AIG except they were bailed out (and rightfully so, which Lehman Brothers should have been also.)

    Basically Lehman Brothers and AIG were victims of the largest orchestrated (psuedo) insurance fraud scheme ever created. Yet nothing is done to the people that committed unparalleled levels of fraud. Even Madoff's Ponzi scheme was only the to the tune of 50 billion dollars, this scheme committed against Lehman Brothers, AIG and the rest of the USA & World were along the lines of TRILLIONS UPON TRILLIONS of dollars.
  • pitchblack16, on 07/15/2009, -1/+4Enron and Madoff two bankruptcies that will likely never be forgotten.
  • TexanRudeBoy, on 07/15/2009, -0/+2Technically you could add a host of others who's only difference was they were lucky enough to be recipients of our money.
  • snoobies, on 07/15/2009, -0/+1I thought they were going to post some bankruptcies from at least the 1970s. bummer.
  • kd1s, on 07/15/2009, -0/+1My father got hit pretty hard on the Madoff thing, losing about half a million so far. It's bad. They should have just publicly executed Madoff.
  • mikek814, on 07/15/2009, -0/+1100 year old company, those are the people who used say that they know market inside and out. BS
  • Rotzooi, on 07/15/2009, -0/+1from sfrench:

    It's a bug. We are working on it.

    Until we get a fix pushed, the shorturls should continue to 301 to the destination, so you won't be getting a diggbar unless you have it enabled in your user preferences.
  • acitodg, on 07/15/2009, -0/+1I agree. It is a ridiculous situation. I know JPM/FDIC are being sued, but it is crazy that it had to come to that for shareholders to get recovery (if they get it).
  • acitodg, on 07/15/2009, -1/+1I like how no one mentions how JPM pretty much stole WaMu for 1.9 billion dollars. WaMu has been shown to be well capitalized at seizure. TARP was passed (conveniently) a few days after they were seized. They would have been fine with TARP funds.

    I found this site(http://www.wamustory.com/) which offers info if anyone is interested in learning more.
  • engsoc, on 07/15/2009, -2/+2Where is MC Hammer on this list? Talk about infamous bankruptcies... you simply can't touch that.
  • sterntastic223, on 07/15/2009, -2/+1My favorite Bankruptcy story is that both Ford motors and Heinz had to file for Bankruptcy protection early on. Doubt Madoff will end up being a ketchup maven, but there's hope for some of these companies.
  • harrisbradley, on 07/15/2009, -2/+1I thought the chrysler bankruptcy of 1979 was a better candidate for the list then some of these.
  • graminal, on 07/15/2009, -1/+0Did Tyco ever actually go bankrupt? As far as I know, they did not.
  • steelersfan7roe, on 07/15/2009, -3/+1HAHA
  • Rotzooi, on 07/15/2009, -5/+3Not clicking the link. ***** the digg.com URL shortener. I want to switch it off - something that was possible to do until a day ago. HATEHATEHATE
  • RealmDown, on 07/15/2009, -8/+2I'd look, but I don't trust a http://digg.com/"***** SHORTCUT URL"

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