Arthur Andersen and a New Century

It's hard to believe that not so very long ago, Arthur Andersen was the accounting firm. But, of course, Enron destroyed that and the company has since gone bust.

But, even dead companies still need to fight legal battles. And today, Andersen agreed to shell-out $72.5 million to settle claims on the Enron debacle. In light of the loss of jobs, pensions and shareholder value, it's a pittance.

It's also an indication that Corporate America is still vulnerable to financial shenanigans. Despite new laws like Sarbanes-Oxley, there are still companies that try to push the envelope -- or even commit crimes.

It seems ironic that on the day that Andersen announces its settlement is also the day that New Century Financial Corp. (NYSE: NEW) had its stock halted. In fact, it looks like the company is facing the same type of liquidity crisis that Enron did.

Yes, it's a bit of déjà vu all over again.

So over the next few years, we can expect some tantalizing books on New Century and perhaps a movie.

As for learning lessons? I'm not sure about that.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.