Enron is a large, complex corporation that made a killing selling electricity. Much like many big corporations, Enron had it's good side and a bad side. In the year of 2002, the bad side of Enron was revealed to the nation. Enron filed for the largest bankruptcy in American history. Enron was one of the largest energy providers in the U.S. and assumed to be doing just fine, but they are now filed for bankruptcy and leaving many people confused about what happened. .
Enron was a Texas based company. It was formed in 1985, out of the junk-bond merger of two old-line natural gas companies. These companies were known as Houston Natural Gas and Omaha InterNorth. The deal integrated several pipeline systems to create the first nationwide natural gas pipeline system. Ken Lay, who had been the chief executive officer of Houston Natural Gas, was named chairman and chief executive officer of the company we now known as Enron. In 1994, Enron made its first electricity trade, beginning what would turn out to be one of the company's biggest profit centers for the next few years. It took just over 15 years for Enron to turn itself into one of the world's largest energy traders. Enron had at one time enjoyed numerous successes.
In December of 2001, Enron Corporation became one of the largest bankruptcies in U.S. history, due to the numerous charges and admissions of fraudulent practices. Not only did this bring about the downfall of the Enron Corporation alone, but the scandal also shook America's already declining stock markets. .
Business Issues:.
It is not a big surprise to see e-commerce companies fall after only weeks, months, or even a few years of being in business. However when you see a true steadfast company filing for a Chapter 11 Bankruptcy it can lead people to be mystified. People lost millions of dollars due to the drop in stock and were in disbelief. Where did the catastrophe start? Who is responsible for the collapse of a multi-million dollar a year company? There were many unethical business practices, accounting was done poorly, and there were corrupt top executives and managers.
