What Went Wrong at Enron: Everyones Guide to the Largest Bankruptcy in U.S. History by Peter C. FusaroAn easy answer guide to the difficult questions surrounding Enron
What Went Wrong at Enron explains the critical steps, transactions, and events that led to the demise of a company that was once considered one of the most innovative corporations in the United States. Energy risk management expert Peter Fusaro gets inside Enron and provides a coherent account of the who, why, where, and when of this corporate debacle, without sacrificing the complexity of what has happened. Enron has been front-page news for months, but confusion still remains about what actually happened. What Went Wrong at Enron is written for readers who find themselves wondering what exactly is an energy trading company, what was the sequence of events that caused the largest corporate bankruptcy in U.S. history, and what does this all mean for me.
Enron Fast Facts
Enron brings to mind the collapse of the seventh largest company in the United States of America and the largest bankruptcy seen by the country till date. Billions of dollars were lost and thousands of jobs were mislaid. Following this debacle, the US authorities have analyzed the situation and have attempted at undoing the wrong in a variety of ways. We will summarize the efforts made by the US authorities in rectifying the discrepancies in the regulations of business practices in corporate America. Finally we will take a closer look at the involvement of the board of directors of public companies to comply with corporate governance procedures after the debacle of Enron. Enron managed to hide millions in dollars in debt and losses through unlawful accounting practices.
Panelists included Kirk O. Edited excerpts from their conversation appear below:. Manuel Velasquez: What went wrong at Enron? In ethics, explanations tend to fall into three categories: personal, organizational, and systemic. Personal explanations look for the causes of evil in the character of the individuals who were involved. Did this happen, for example, because the people involved were vicious? Were they greedy?
CNN Here's a look at Enron, an energy trading company that collapsed after a massive accounting fraud scheme was revealed. Its bankruptcy filing was the largest in American history at the time. Chat with us in Facebook Messenger. Find out what's happening in the world as it unfolds. Sherron Watkins, the Enron vice president who first called her company's finances into question, listens to a question following her keynote address to the Women's Economic Club luncheon March 26, , in Dearborn, Michigan. Facts: Enron was ranked as America's fifth largest company by Fortune magazine in , despite its bankruptcy filing.
As began, energy Trader Enron Corp. In less than a year, Enron had gone from being considered one of the most innovative companies of the late 20th century to being deemed a byword for corruption and mismanagement. In its first few years, the new company was simply a natural gas provider, but by it had begun trading natural gas commodities, and in it began trading electricity. The company introduced a number of revolutionary changes to energy trading, abetted by the changing nature of the energy markets, which were being deregulated in the s and thus opening the door for new power traders and suppliers. Enron tailored electricity and natural gas contracts to reflect the cost of delivery to a specific destination—creating in essence, for the first time, a nationwide and ultimately global energy-trading network. By the late s, Enron had begun shuffling much of its debt obligations into offshore partnerships—many created by Chief Financial Officer Andrew Fastow.
Robert Bradley Jr. He witnessed the flawed management, the bad decisions and the situational ethics that wrecked the company that once climbed to No. Enron collapsed and filed for bankruptcy in , throwing Bradley and thousands of other employees out of work and turning the once valuable stock options into worthless pieces of paper. Several former Enron executives were sent to prison for their roles in the fraud. Lay died before he was sentenced. Bradley recently spoke with the Chronicle. Edited excerpts follow.