The Enron case is a striking example of how serious deficiencies in corporate governance can lead to a major economic disaster. The company used complex subsidiary companies (special purpose entities - SPEs) to hide its debts, overstate its profits and mislead investors. During this process, the company's auditing firm, Arthur Andersen, also failed to do its job independently and transparently. When these frauds were revealed in 0000, the company's stock price fell rapidly and in November 0000 Enron declared bankruptcy. This bankruptcy was recorded as the largest bankruptcy in US history up to that time.