Enron
Enron: The Fall from Grace/ The World’s Biggest Fraud
Outline
A. Enron’s History B. Overview of Enron’s Operations 1. Wholesale Services 2. Energy Services 3. Global Services C. Enron’s Timeline D. Enron’s Role in The Energy Crisis in California E. The Fall of Enron F. Why Enron Fell from Grace? G. The Crash of Enron 1. Key Management at Enron 2. Enron’s Auditor 3. Credit Rating Agencies 4. Investment Banks 5. Links with The Government (Bush Administration) 6. The Link of Enron with The British Front 7. The Victim: Employees & Pension Fund Holders H. Investigators & Regulators Involved 1. Capital Market Regulatory Authorities 2. Judicial & Legislative Entities I. Lessons Learned J. Proposed Reforms to Avoid Future Enronitis K. What Could be Done to Avoid Such Enron-like Crises in Emerging Markets Such as Egypt? 1. In Relation to The Exchange (CASE) 2. In Relation to The Regulator (CMA) 3. In Relation to Auditing & Accounting Practices 4. In Relation to Investors 5. In Relation to Board of Directors & Management
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A. Enron’s History Enron, a Houston-based energy firm founded by Kenneth Lay, transformed itself over its sixteen years lifespan from an obscure gas pipeline concern to the world’s largest energy-trading company (both off and online). Enron has become an interstate and intrastate natural gas pipeline company with approximately 37,000 miles of pipe. Enron was largely credited by creating market trading in energy, allowing energy to be traded in the same way as other commodities such as oil. Enron was long viewed as the star of the stock market. It experienced a meteoric rise and ranked 22nd in the Fortune’s 100 best companies list in America in 2000. The company had offices around the world including Australia, Japan, South America and Europe. Furthermore, Enron established itself in the UK, as the first foreign company, to begin construction of a power plant, after the electric industry in the UK was privatized. B. Overview of Enron’s Operations Enron
Outline
A. Enron’s History B. Overview of Enron’s Operations 1. Wholesale Services 2. Energy Services 3. Global Services C. Enron’s Timeline D. Enron’s Role in The Energy Crisis in California E. The Fall of Enron F. Why Enron Fell from Grace? G. The Crash of Enron 1. Key Management at Enron 2. Enron’s Auditor 3. Credit Rating Agencies 4. Investment Banks 5. Links with The Government (Bush Administration) 6. The Link of Enron with The British Front 7. The Victim: Employees & Pension Fund Holders H. Investigators & Regulators Involved 1. Capital Market Regulatory Authorities 2. Judicial & Legislative Entities I. Lessons Learned J. Proposed Reforms to Avoid Future Enronitis K. What Could be Done to Avoid Such Enron-like Crises in Emerging Markets Such as Egypt? 1. In Relation to The Exchange (CASE) 2. In Relation to The Regulator (CMA) 3. In Relation to Auditing & Accounting Practices 4. In Relation to Investors 5. In Relation to Board of Directors & Management
2
A. Enron’s History Enron, a Houston-based energy firm founded by Kenneth Lay, transformed itself over its sixteen years lifespan from an obscure gas pipeline concern to the world’s largest energy-trading company (both off and online). Enron has become an interstate and intrastate natural gas pipeline company with approximately 37,000 miles of pipe. Enron was largely credited by creating market trading in energy, allowing energy to be traded in the same way as other commodities such as oil. Enron was long viewed as the star of the stock market. It experienced a meteoric rise and ranked 22nd in the Fortune’s 100 best companies list in America in 2000. The company had offices around the world including Australia, Japan, South America and Europe. Furthermore, Enron established itself in the UK, as the first foreign company, to begin construction of a power plant, after the electric industry in the UK was privatized. B. Overview of Enron’s Operations Enron