Enron stock market

Author: ssattellitte Date: 10.06.2017

The Fall of Enron Collapse Felt from Workers' Homes to Halls of Government. Former Enron chairman Kenneth Lay declines to testify before a Capitol Hill panel.

Senators criticize Enron's financial dealings and scold the firm's leaders for their reluctance to cooperate with Congress. NPR's Emily Harris reports. Part I What Went Wrong at Enron?

NPR : Fall of Enron

Part II Throughout the late s, Enron was almost universally considered one of the country's most innovative companies -- a new-economy maverick that forsook musty, old industries with their cumbersome hard assets in favor of the freewheeling world of e-commerce. The company continued to build power plants and operate gas lines, but it became better known for its unique trading businesses.

enron stock market

Besides buying and selling gas and electricity futures, it created whole new markets for such oddball "commodities" as broadcast time for advertisers, weather futures, and Internet bandwidth. Enron's fall is one of the worst business failures in American history. Copyright Reuters Limited. The Enron story was perfect for the dotcom-driven stock market boom of the '90s.

With its roots in the utility business, the company enjoyed a solid reputation for old-economy stability. But unlike other energy companies that didn't "get it," Enron thrust itself headlong onto the Internet.

enron stock market

The business press ate it up; so did Wall Street, sending the stock into the stratosphere. All that came crashing down starting last October, when the company admitted that it had misstated its income and that its equity value was a couple of billion dollars less than its balance sheet said.

Enron scandal - Wikipedia

The company, it was revealed, had made about a dozen "partnerships" with companies it had created, and it used those partnerships to hide huge debts and heavy losses on its trading businesses. At the same time, Arthur Andersen, the company that audited Enron's books, at best neglected to recognize the company's problems.

At worst, investigators now say, the auditor was complicit in perpetrating one of the biggest frauds in corporate history. Thousands of people were thrown out of work, and thousands of investors -- including most of the company's employees -- lost billions of dollars as Enron's shares shrank to penny-stock levels. Throughout January, revelations poured forth from Enron: It quickly became clear that the sudden collapse of the country's seventh-largest company was going to have implications not only for business, but for politics and policy as well: Enron and its officers were among the biggest donors to U.

William Lerach an attorney suing Enron, talks to reporters outside the Federal building in Downtown Houston on Jan. Critics say that deregulation of the energy business created the environment for Enron to fall. Chairman and CEO Kenneth Lay was apparently invited to take part in Vice President Dick Cheney's task force on energy policy, which met behind closed doors.

To top it off, Enron executives, particularly Lay, are chummy with many in the administration, including President Bush himself, who refers to his friend Lay as "Kenny boy.

Some observers predict the case will result in jail terms.

The Rise and Fall of Enron

Others say that at the least, new regulations will have to be imposed both on the accounting business and on the energy industry. Though all the details of company' s collapse may not be known for months -- and its full ramifications may not be clear for years -- observers predict the fall of Enron will be known for decades to come as one of America's greatest business debacles. Browse more NPR stories on Enron.

enron stock market

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