I saw it as well as all I accepted was which Enron was hidden income from
California by branch off the energy source as well as observant which their investments were profiting when they unequivocally were not.
I’m I scold as well as can someone promulgate it? I know Skilling left prior to it fell as well as pleaded which it was in great conditions when he left it. What happened to Lay?
SO WHAT DID HAPPEN IN ENRON: THE SMARTEST GUYS IN THE ROOM?
Previous post: IS INVESTING ON A HOUSE WITH MY FATHER A GOOD IDEA?
Next post: THE EASTERNBLOCK DEAD WEIGHT FOR EU OR INVESTMENT???????
{ 1 comment… read it below or add one }
Enron (its management) had created invoices to its subsidiaries the sale of electricity which actually did not happen, ficticious sales. By booking these invoices, Enron appeared a very profitable company. Unsuspecting investors were buying up stocks of Enron, and the management allowed themselves huge salaries and bonuses. When the house of cards began to fray, the management sold their Enron shares before the whole thing blew up on their faces, but wrote internal memos prohibiting employees from selling Enron shares for 3 more months so that they could get rid of all of their shares. Since their shareholdings were so big, they could not liquidate in one big sweep.
When some internal people who knew of wrong doings blew whistle on the management, Skilling, Lay and other senior managers have been indicted. Skilling made a deal with Fed’s for lighter sentences for his crime by testify against other executives of Enron. He is in jail serving his time now but lighter term. Ken Lay was convicted and sentenced to 25 years in prison, but before he could serve, he died of heart attach. Lay and Skilling had pocketed close to 1/2 billion dollars each from these illegal acts. Not only they stole the money from the company, they stole from its employees and shareholders. I know personally several employees of Enron who lost most of their retirement money since they had their entire retirement money invested in Enron like in employees stock purchase plan. Some of these people were not the original Enron employees but the employees of acquired company such as Houston Energy Corp.
Greed of these executives are rampant in view of what’s happened at Bear Sterns, Lelhman Brothers, Washington Mutual, AIG and alike. GM and Ford are about to go under unless US government bails them out with our tax dollars. Some of these failed companies executives got “golden parachute”, severance pay of more than $20 million each for doing such a bad job bringing the company to bankdruptsy. Dick Fuld of Lehman Brothers made $450 million bonuses and a golden parachute while all of his employees are standing in line at umemployment office. Something is very wrong with this picture, wouldn’t you agree?