What Happened in Enron
What happened in Enron and Arthur Andersen?
United States ' seventh largest company Enron, with the slogan "Ask Why" was admired for its innovation, but it all ended up in bankruptcy and criminal matters.
The company filed for bankruptcy in December 2001. This was one of the world 's biggest corporate scandals in history. USA 's seventh largest firm had in over sixteen years increased its assets from 10 billion to 70 billion U.S. dollars, and was by the stock market analysts from Wall Street hailed as the new economy model.
Five years in a row, readers of Fortune magazine appointed Enron as 'The most innovative company in America '. The company 's director and founder (in 1985) was Kenneth Lay, who was the future business idol. In his holidays, he played golf with former President Clinton - while he made Enron the largest contributor to George W. Bush 's career as Texas governor, and not least as U.S. president.
As a former employee of the now defunct U.S. federal energy commission, Acting Deputy Minister of Energy compared the Interior and economist for the Pentagon during the Vietnam War had Lay conditions for developing its business in light of a political concept: aggressive 'deregulation ', the removal of all regulatory and legal obstacles for privatization and monopoly profits.
Enron was dealing with natural gas. As oil prices fell during the '80s, and natural gas (which had flourished in the wake of the oil crisis) was again threatened by falling oil prices, Lay found out that 'deregulation ' was the answer. Large customers would no longer be bound by agreements with local, often public energy facilities, but could buy directly from producers, which in turn should have access to the pipe and conduit systems.
Public monopolies were broken. Lay went directly to the Federal Energy Regulatory Commission (FERC) and got the rules repealed.
The result was more volatile energy prices. Now, Lay got his most 'innovative ' idea: to make
United States ' seventh largest company Enron, with the slogan "Ask Why" was admired for its innovation, but it all ended up in bankruptcy and criminal matters.
The company filed for bankruptcy in December 2001. This was one of the world 's biggest corporate scandals in history. USA 's seventh largest firm had in over sixteen years increased its assets from 10 billion to 70 billion U.S. dollars, and was by the stock market analysts from Wall Street hailed as the new economy model.
Five years in a row, readers of Fortune magazine appointed Enron as 'The most innovative company in America '. The company 's director and founder (in 1985) was Kenneth Lay, who was the future business idol. In his holidays, he played golf with former President Clinton - while he made Enron the largest contributor to George W. Bush 's career as Texas governor, and not least as U.S. president.
As a former employee of the now defunct U.S. federal energy commission, Acting Deputy Minister of Energy compared the Interior and economist for the Pentagon during the Vietnam War had Lay conditions for developing its business in light of a political concept: aggressive 'deregulation ', the removal of all regulatory and legal obstacles for privatization and monopoly profits.
Enron was dealing with natural gas. As oil prices fell during the '80s, and natural gas (which had flourished in the wake of the oil crisis) was again threatened by falling oil prices, Lay found out that 'deregulation ' was the answer. Large customers would no longer be bound by agreements with local, often public energy facilities, but could buy directly from producers, which in turn should have access to the pipe and conduit systems.
Public monopolies were broken. Lay went directly to the Federal Energy Regulatory Commission (FERC) and got the rules repealed.
The result was more volatile energy prices. Now, Lay got his most 'innovative ' idea: to make
Bibliography: Movies Gibney, A. (Director). (2006). Enron: The Smartest Guys In The Room. Jigsaw Productions. Books Smith, C. / Lenssen, G.. (1992). Mainstreaming Corporate Responsibility. John Wiley & Sons. McLead, B. (2004). The Smartest Guys In The Room: The Amazing Rise and Scandalous Fall of Enron. Portfolio Trade. Swartz, M. (2003). Power Failure: The Inside Story of the Collapse of Enron. Doubleday. * Internet Enron. Retrieved October 2, 2009, from http://en.wikipedia.org/wiki/Enron.