This isn’t my area of expertise, but this sounds like confusing cause for effect. I think these companies dissolving would be a consequence of an economic collapse or a bellwether of an economic collapse, but not a cause of one.
this post was submitted on 26 Feb 2025
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Do you think the government would bail out the Big Four or let them dissolve?
They’re all based out of London, and I don’t know how defaults work there. Given their importance and political pull, if they were US-based I imagine they’d get restructured rather than liquidated. Apparently Arthur Anderson hollowed itself despite the possibility of restructuring?
I think it was because Arthur Andersen was also involved in WorldCom, apart from Enron which took him to the grave.
If you have two accounting and auditing scandals, it is better to dissolve than to recover.
You assume the companies would not use their political influence to get governments to bail them out of debt.
Do you think companies will ask governments to bail out the Big Four?
I don't think companies want to revive or rescue the Big Four after the accounting scandals. They prefer to stay as far away from that problem as possible.
No, the big 4 will use their own army of lobbyists to convince governments to bail them out.
Well, if that's the case, I can't imagine how much money they're going to give to get the government to bail them out.