Taking A Look At Enron

Submitted By johnjedi123

Words: 335

Pages: 2

Open Document

Enron
Enron was one of America’s biggest companies. They were a natural gas pipeline company. They had a lot of money in stocks and were doing very well by increasing by 50%. Then it had got worse from hidden deals that the company was doing behind the scenes. This had caused the company to fall to bankruptcy. Witch at the end collapsed the business. Maybe, then, it was the Lord’s work Enron was doing as it pushed electricity deregulation through the 1990s, and transformed itself from a gas pipeline company into an energy trader designed to provide choices and maximize profits in the freewheeling aftermath. After all, what better sign of the Almighty’s favor could there be than Lay’s compensation for the year of Our Deregulated Lord 2000: $141.6 million, a full 184 percent increase over 1999. Blessed indeed are the market makers! “We’re on the side of angels,” the company’s former CEO Jeff Skilling told Business Week a little while ago. “In every business we’ve been in, we’re the good guys.”
Fortunately for the rest of us, though, Enron didn’t inherit the earth. The company may have promised to deliver greater “transparency” to energy markets, but upon inspection its own affairs turned out to be a tangled mess of lies, nepotism and exaggeration that included the overstatement of profits by some $586 million — a revelation that caused panic among investors and a catastrophic collapse for the mighty

How Did Such A Powerful Company Fall From Grace And Self-Imploded To Bankruptcy?

of natural gas pipelines in the United States and leaders of the energy deregulation (Chatterjee,2001). Enron was one of the most powerful and wealthy companies in the world towards the end of the companies legacy (Chatterjee,2001).How did such a powerful company fall from grace and self-imploded to bankruptcy? The start of Enron all came together with the merger of two companies in 1985(CBCnews). The two companies that took part in the merger were Houston Natural Gas and Omaha-based…

Words 673 - Pages 3

Enron and Enron Finance Corp Essay

practices can cause lasting damage to a company and initiate a ripple effect of change throughout all of corporate America. Laws and regulations were slow to keep pace with innovations in derivatives trading that constituted the main source of Enron’s income. Because of this, unethical traders and accountants at Enron were able to take advantage of this lack of understanding and oversight to hide deficiencies in the company’s balance sheet. As a result, the company imploded, causing thousands to lose…

Words 672 - Pages 3

enron's case Essay

case on business ethics. Enron formed after the merger of Internorth Incorporated and Houston Natural Gas in 1985. On January 1, 1987, as part of the merger agreement, Ken Lay became the new CEO. In 1990, Ken Lay hired Jeffrey Skilling from McKinsey and Company as the Head of Enron Finance. By 1995, Enron had become the largest independent natural gas company in the United States. In 1997, Skilling became president and Chief Operating Officer at Enron. Ken Lay’s goal was for Enron to have the same…

Words 953 - Pages 4

Financial Analysis Paper

The financial landscape during and after Enron Enron appeared to be a company on the rise in the 1990’s and into the new century. However, in 2001, the world was shocked by the demise of Enron, a multibillion dollar corporation that had thousands of employees and people that had affiliations with the company including The White House itself. Because of the financial chaos and destroyed lives and reputations this catastrophe left in its path, questions arose concerning how exactly it happened, why…

Words 550 - Pages 3

enron case Essay

the most innovative US company from 1996 to 2001 by Fortune magazine, (including topping the ‘quality of management’ category in 2000), and yet in December 2001, filed for protection under Chapter 11 provisions. An enormously influential cast of competitive, ambitious players had a role, but to keep this exercise manageable, only the 4 key players will be referred to by name: Kenneth L. Lay, who was appointed chairman and chief executive in November 1985 of minor company that was to take the…

Words 3776 - Pages 16

Enron and Purpose Entities Enron Essay

leaving the Department of the Interior in 1974, he began working in the Oil and Gas industry. During this period, he lobbied aggressively for deregulation of the industry. He also fostered connections and relationships with many politicians including both George Bush Sr. and George W. Bush. In 1984 he was hired as the CEO of Houston Natural Gas. Houston Natural Gas merged with InterNorth in 1985 and in 1986 the company changed its name to Enron. In 1987, it was discovered that 2 executives from Valhalla…

Words 2204 - Pages 9

Enron Research Paper

that had affiliations with the company including The White House itself. Because of the financial chaos and destroyed lives and reputations this catastrophe left in its path, questions arose concerning how exactly it happened, why it occurred, and who was behind it. It is essential to understand how this multibillion dollar corporation rose to power and later imploded. Enron itself was born as the result of Houston’s Natural Gas and InterNorth, a gas based pipeline company from Nebraska in 1985. In the…

Words 2221 - Pages 9

The Smartest Guys In The Room By Bethany Mclean And Peter Elkind

Corporation was an American energy, commodities and service company based in Houston, Texas. Before its bankruptcy in December 2, 2001, Enron employed more than 20,000 employees and was one of world’s major electricity, natural gas, communications and pulp and paper company with claimed revenues of nearly $111 Billion during the year 2000. In 1985 Kenneth Lay (the founder of Enron Corporation) merged the natural gas pipeline companies of Houston Natural gas and Internorth to form Enron. Enron was named by the…

Words 3308 - Pages 14

Enron Case Study

began in 1985 as an interstate pipeline company through the merger of Houston Natural Gas and Omaha-based InterNorth. Kenneth Lay, the former chief executive officer of Houston Natural Gas, became CEO, and the next year won the post of chairman. The firm's business model evolved to focus on two related themes: • the acquisition and operation of power plants and electric distribution companies, and • Trading operations in which Enron created markets for trading gas and electricity and financial securities…

Words 1766 - Pages 8

Corporate Fraud Essay

or illegal means to misrepresent information about a firm’s financial health constitutes fraud. In legal language, "corporate fraud" means a violation of state or federal law or rules relating to fraud committed by a corporation, limited liability company, or registered limited liability partnership or an officer, director, or partner of those entities while acting in a representative capacity.”1 There is always increasing pressure on the CEO and the board to increase the income and today such pressures…

Words 3216 - Pages 13