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Enron – The Smartest Guys In The Room

As the company was growing as a leader the annual income crossed a $100 billion by leaving a mark to be the seventh largest company under the Fortune 500. According to the CBC news the company share was always as high as a $90 per share. Later 2001 was the year where the company started to show off a downfall by decreasing its share to a $1 from a $90 which lead the company to file a bankruptcy in December 2001 and was seen one of the huge bankruptcy in the history and not a surprise it also marked as a big failure in audit. .
             The company was henceforth put into serious scrutinize by the Unites States Justice department, shareholders, public and the SEC professionals. As a result it was found that the company was hiding its loss year after year from its shareholders in order to hold the company healthy and wealthy. It was clearly known that the managers have nearly gambled with their shareholders money. In November 2002, Andrew Fastow the chief financial adviser of the company was charged for fraud, money laundering and conspiracy and was sentenced to 10 years prison with a fine of $23.8 million. Kenneth Lay was also convicted for the wire and security fraud (Thomas 2002). Also on the other hand the company was forced to sell its assets due to bankruptcy and many employees lost their job and the 401-k savings. Such a downfall of a leading company not only caused a billion dollar loss for the investors but also collapsed the electricity trading markets and the accounting scandal which very effectively made people to loss confidence in the corporate integrity. .
             Findings.
             It was understood that Jeffery Skilling head in his own way of thoughts and ideas which put the entire company down. Though he convinced that he didn't do a crime he was on and off about the facts the balance sheet partnerships that was going behind. On the other hand Kenneth Lay also claims that he was also little bit aware about the balance sheet partnership but thought they were legal because they were signed duly by the attorneys and accountants.


Essays Related to Enron – The Smartest Guys In The Room

1. Enron

The fall of Enron has forced many businesses to rethink their strategies on reporting their finances. ... The Enron executives knew this, but continued anyway because those deals would make them money, even though they would hurt Enron overall. ... Another issue at Enron was the reporting of finances correctly. ... A final problem was the lack of information given to the lower employees of Enron. ... During the stock plunge, Enron executives ordered a freeze on employees selling stocks. ...

  • Word Count: 855
  • Approx Pages: 3

2. Enron

The Enron scandal was the largest corporate financial scandal ever when it emerged. ... Enron was on the verge of selling itself to Dynegy for $8 billion. ... Withdrawing their offer on Enron probably saved Dynegy as well. ... The bankruptcy of Enron led to many subpoenas amongst executives of Enron, Arthur Anderson (Enron's accounting firm and the largest in America), and further investigations into the paper shredding incident and how this happened in the first place. ... Anderson did mislead investors in their reports of Enron's finances. ...

  • Word Count: 1040
  • Approx Pages: 4
  • Grade Level: Undergraduate

3. Enron

Over sixty percent of the 401K was made up of Enron stocks. ... THE COLLAPSE OF ENRON On November 29,2001 the Wall Street Journal ran an article"Running On Empty"-Enron Faces Collapse. ... It is also reported that Enron didn't pay federal income tax for five to six years.Some say Enron triggered K-Mart's bankruptcy. Enron has filed for Chapter 11 bankruptcy. ... People in Enron Forst let us discuss the major players at Enron.Kenneth Lay was Enron Corporate Chairman and chief executive. ...

  • Word Count: 1748
  • Approx Pages: 7
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4. The Fall of Enron

The Fall of Enron The History Enron began as a pipeline company in Houston in 1985. ... The Business of Enron Enron became a giant middleman that worked like a hybrid of traditional exchanges. ... Over time, Enron began to design increasingly varied and complex contracts. ... The Failure of Enron As its services became more complex and its stock soared, Enron created a constellation of partnerships that allowed manages to shift debt off the books. ... Clifford Baxter, (former Enron Vice Chairman) was one of 29 former and current Enron executives and board members names as defendants in f...

  • Word Count: 797
  • Approx Pages: 3
  • Grade Level: Undergraduate

5. Enron

Another issue arising from the Enron case is the clarity of roles and responsibilities of directors. ... Enron was such an example. ... The ultimate failure of Enron may be the lack of "management ethics". ... These people maintained an illusion of Enron's financial health. If Andersen had blown the whistle on Enron's financial transactions, Enron may have been forced to keep its debt from spiraling out of control. ...

  • Word Count: 1015
  • Approx Pages: 4
  • Grade Level: Undergraduate

6. Enron

The most notorious example of current times is the Enron Scandal. ... Enron had at one time enjoyed enormous success. ... Enron's mission statement emphasizes integrity, fairness and openness. ... Integrity was a main point in Enron's mission statement. ... The Enron scandal has lead many question the morals and ethics of the firm. ...

  • Word Count: 1381
  • Approx Pages: 6
  • Grade Level: Undergraduate

7. Enron Scandal

Enron used a "floor-offset" arrangement to reduce its pension expense. ... Enron had ties to Chewco Investments LP and JEDI. They were classified as independent entities on Enron's financial statements. ... These were deliberate acts to improve Enron's financial statements. ... Especially when it's on such a large scale as this Enron case. ...

  • Word Count: 1087
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8. Enron

In just a little over 15 years, Enron grew into one of the US's largest companies. ... As predicted, the review went over favorably for Enron. On August 14th, 2001, Jeff Skilling resigned from Enron as its chief executive of Enron and Kenneth Lay retook the position as chief executive. ... With Enron's employees trying to pull out, Enron put a block on their employees selling their stock from within their pension schemes. ... On December 2nd, 2001 Enron filed bankruptcy. ...

  • Word Count: 1211
  • Approx Pages: 5
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9. Why Did Enron Collapse

Enron's strategic intent was to become the blue-chip energy and communication company of the 21st century through its business efforts in four core areas: Enron Wholesale Services, Enron Broadband Services, Enron Energy Services, and Enron Transportation Services. ... Tom Fowler of the Houston Chronicle Enron reported the following example about how an Enron employee profited from the misstating of finances; "The partnerships called LJM1 and LJM2, which were formed using Enron equity and outside capital as a way to hedge against the risks involved in some of the company's new lines ...

  • Word Count: 1277
  • Approx Pages: 5
  • Has Bibliography
  • Grade Level: Undergraduate

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