Reply #7: Read the interview.

[Eddie Haskell]

The fraud was part of the formula.

"Control fraud is when the person who controls a seemingly legitimate entity, uses it as a weapon to fraud. In the financial sphere, the weapon of choice is accounting. So here are the four ingredients of the recipe that produce a sure thing of record accounting income.

1.Grow like crazy
2.Make preposterously bad loans but at a premium yield.
3.Have extreme leverage. That means you have a ton on debt.
4.Put aside only ridiculously low allowances for future loan losses.

You do those four things, you are mathematically guaranteed to report record, albeit fictional, profits in the short term. You are also guaranteed with modern executive compensation, to make the Senior Executives wealthy, and you are guaranteed, because after all, if you think about those four ingredients, they are the perfect recipe as well for maximizing real losses."