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Enron's Fastow and the Rise of Mark-to-Market Accounting
Enron's CFO Andrew Fastow led a manipulative scheme using his sub-corporation LSM and mark-to-market accounting to inflate the company's market cap to $70 billion by August 2000, making it the seventh largest publicly traded company in the world at the time. Mark-to-market accounting is a narrow purpose entity intended to rate the financial health of companies based on future earnings rather than current worth.