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Deceit and Betrayal at WorldCom

Wiley,

15 min read
10 take-aways
Text available

What's inside?

Bernie Ebbers rode WorldCom from a small regional company to huge success to a major international business disaster.

Editorial Rating

7

Qualities

  • Innovative

Recommendation

This account by Lynne W. Jeters, a Mississippi business journalist, is readable though somewhat disorganized. You will come away with a better sense of the environment of good old boy networking that allowed Bernie Ebbers, a country motel operator, to become CEO of one of the hottest, most corrupt companies America ever produced. WorldCom, even more than Enron, epitomizes the greed, blindness and folly that afflicted the U.S. stock markets in the 1990s. The book needed a stronger editorial hand, but getAbstract.com on the whole finds it is a useful, illuminating addition to the sagas of Wall Street scandals.

Summary

The WorldCom Timeline

1941 — Bernard J. "Bernie" Ebbers is born into a poor but devout family in Edmonton, Alberta, Canada. His father, John Ebbers, travels North America selling tires and hardware. He moves the family to California when Bernie is about to enter second grade. After four years, the family moves to New Mexico; four years later, they return to Edmonton. At 6'4", Ebbers becomes a high school basketball player. After graduation, he drifts in and out of the University of Alberta and Calvin College in Michigan. He follows a friend to Mississippi College, which gives him a basketball scholarship. But local hoodlums cut his Achilles tendon with a bottle, ending his athletic career. The community arranges a scholarship fund.

1967 — WorldCom's future CEO graduates with a bachelor's degree in physical education and becomes a high school basketball coach. He buys a Columbia, Mississippi, motel and profitably rents rooms to oilfield roughnecks. Ebbers doubles the motel's value in only five years and persuades some devout Christian friends to invest in other motels with him. They form the Master Corporation and purchase the 65-room Jones Motel in Collins...

About the Author

Lynne W. Jeter has been the primary WorldCom reporter for the only statewide business magazine in Mississippi, the Mississippi Business Journal. She also reports for the Clarion-Ledger, Mississippi’s largest daily newspaper. She was named SBA Small Business Journalist of the year for Mississippi in 1999.


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