NationMaster - Encyclopedia: Enron scandal

The Enron scandal was a financial scandal that was revealed in late 2001. After a series of revelations involving irregular accounting procedures bordering on fraud, perpetrated throughout the 1990s, involving Enron and its accounting firm Arthur Andersen, it stood at the verge of undergoing the largest bankruptcy in history by mid-November 2001. A white knight rescue attempt by a similar, smaller energy company, Dynegy, was not viable. Enron filed for bankruptcy on December 2, 2001. Image File history File links Enron_Logo. ... â€œOmahaâ€ redirects here. ... Houston redirects here. ... Kenneth Lee Ken Lay (April 15, 1942 â€“ July 5, 2006) was an American businessman, best known for his role in the widely-reported corruption scandal that led to the downfall of Enron Corporation. ... Jeffrey Keith Jeff Skilling (born November 25, 1953) was the CEO of Enron Corporation in 2001. ... Andrew Stuart Fastow (born 22 December 1961) was the chief financial officer of Enron Corporation until the U.S. Securities and Exchange Commission opened an investigation into his conduct in 2001. ... Rebecca Mark-Jusbasche was famous as the head of the Enron International division of Enron. ... For the tax agency in Ireland of the same name, see Revenue Commissioners. ... This article is about work. ... Look up slogan in Wiktionary, the free dictionary. ... A website (alternatively, Web site or web site) is a collection of Web pages, images, videos or other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN. A Web page is a document, typically written in HTML... Enron Creditors Recovery Corporation (formerly Enron Corporation) (former NYSE ticker symbol: ENE) was an American energy company based in Houston, Texas. ... For the U.S. Supreme Court case commonly known as Arthur Andersen, see Arthur Andersen LLP v. ... In business, a white knight may be a corporation, a private company, or a person that intends to help another firm. ... Dynegy is a large operator of power plants and a player in the natural gas liquids business, based in Houston, Texas. ... Notice of closure stuck on the door of a computer store the day after its parent company, Granville Technology Group Ltd, declared bankruptcy (strictly, put into administrationâ€”see text) in the United Kingdom. ...

As the scandal was revealed, Enron shares dropped from over US$90.00 to just pennies. As Enron had been considered a blue chip stock, this was an unprecedented and disastrous event in the financial world. Enron's plunge occurred after it was revealed that much of its profits and revenue were the result of deals with special purpose entities (limited partnerships which it controlled). The result was that many of Enron's debts and the losses that it suffered were not reported in its financial statements. A blue chip stock is the stock of a well-established company having stable earnings and no extensive liabilities. ... A special purpose entity (SPE) (sometimes, especially in Europe, special purpose vehicle) is a body corporate (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives, primarily to isolate financial risk, usually bankruptcy but sometimes a specific taxation or regulatory... A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners (GPs), there are one or more limited partners (LPs). ... Historical financial statement Financial statements (or financial reports) are formal records of a business financial activities. ...

In addition, the scandal caused the dissolution of Arthur Andersen, which at the time was one of the world's top five accounting firms. For the U.S. Supreme Court case commonly known as Arthur Andersen, see Arthur Andersen LLP v. ...

Background

In the early 1990s the Congress of the United States of America passed legislation deregulating the sale of electricity. It had done the same for natural gas some years earlier. The resulting energy markets made it possible for companies like Enron to thrive, while the resultant price volatility was often bemoaned by producers and local governments.^[2] Strong lobbying on the part of Enron and others, however, kept the system in place.^[3]^[4] By the late 1990s Enron's stock was trading for $80-90 per share, and few seemed to concern themselves with the opacity of the company's financial disclosures. Deregulation is the process by which governments remove, reduce, or simplify restrictions on business and individuals in order to (in theory) encourage the efficient operation of markets. ... For other uses, see Natural gas (disambiguation). ... Volatility most frequently refers to the standard deviation of the change in value of a financial instrument with a specific time horizon. ... This article is about the political effort. ...

In mid July 2001, Enron reported earnings of $50.1 billion, almost triple year-to-date, beating analysts' estimates by 3 cents a share.^[5] Despite this, Enron's profit margin had stayed at a modest average of about 2.1%, and its share price had dropped by over 30% since the same quarter of 2000.^[6] Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ...

However, concerns were mounting. Enron had recently faced several serious operational challenges, namely logistical difficulties in running a new broadband communications trading unit, constructing the Dabhol Power project, a large power plant in India, and criticism of the company for the role it allegedly had played in the power crisis of California in 2000-2001. Dabhol Power Plant The Dabhol Power Company was a company based in India and was made to manage and operate the Dabhol Power Plant. ... A power station (also power plant) is a facility for the generation of electric power. ... The California electricity crisis (also known as the Western Energy Crisis) of 2000 and 2001 resulted from the gaming of a partially deregulated California energy system by energy companies such as Enron and Reliant Energy. ...

Timeline of Enron's downfall

On August 14, 2001, Jeffrey Skilling, the chief executive of Enron, a former energy consultant at McKinsey & Company who joined Enron in 1990, announced he was resigning his position after only six months. Jeffrey Keith Jeff Skilling (born November 25, 1953) was the CEO of Enron Corporation in 2001. ... Chief Executive may refer to: Chief Executive of Hong Kong Chief Executive of Macau Chief Executive Officer This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... McKinsey & Company is a privately owned management consulting firm that focuses on solving issues of concern to senior management in large corporations and organizations. ...

"[T]he reasons for leaving the business are personal," said Skilling at the time, "but I'd just as soon keep that private."^[7] Observers noted that in the months leading up to his exit, Skilling had sold at minimum 450,000 shares of Enron at a value of around $33 million (though he still owned over a million shares at the date of his departure).^[8] Nevertheless, Kenneth Lay, the chairman at Enron, reassured analysts by affirming that there was "[a]bsolutely no accounting issue, no trading issue, no reserve issue, no previously unknown problem issues" prompting the departure. He further assured stunned market watchers that there would be "no change in the performance or outlook of the company going forward" from Skilling's departure.^[9] Lay announced he himself would re-assume the position of chief executive.

The next day, however, Skilling admitted that a very significant reason for his departure was Enron's faltering price in the stock market.^[10] The columnist Paul Krugman, writing in the NY Times, asserted that Enron was an illustration of the consequences that occur from the deregulation and commodification of things such as energy.^[11] A few days later, in a letter to the editor, Kenneth Lay defended Enron and the philosophy behind the company: Paul Krugman Paul Robin Krugman (born February 28, 1953) is an American economist. ...

Investors begin to worry

By the end of August of 2001, his company's stock still falling, Lay named Greg Whalley, 39, president and chief operating officer of Enron Wholesale Services and Mark Frevert, 46, who was previously Mr. Whalley's superior at Enron Wholesale, to positions in the chairman's office. Some observers suggested that Enron's investors were in significant need of reassurance, not least because the company's business was difficult to understand (even "indecipherable"^[14]) and difficult to properly express in a financial statement.^[15] "[I]t's really hard for analysts to determine where [Enron] are making money in a given quarter and where they are losing money," said one analyst.^[16] Lay accepted that Enron's business was very complex, but asserted that analysts would "never get all the information they want" to satisfy their curiosity. He also explained that the complexity of the business was due largely to tax strategies and position-hedging.^[17]

Lay's efforts seemed to meet with limited success; by September 9, 2001, one prominent hedge fund manager noted that "[Enron] stock is trading under a cloud."^[18] The sudden departure of Skilling combined with the opacity of Enron's accounting books made proper assessment difficult for Wall Street. In addition, the company admitted to repeatedly using "related-party transactions," which some feared could be too-easily used to transfer losses that might otherwise appear on Enron's own balance sheet. A particularly troubling aspect of this technique is that several of the "related-party" entities were or had been controlled by Enron's CFO, Andrew Fastow.^[19]

After the September 11, 2001 attacks, media attention shifted away from the company and its troubles; a little less than a month later Enron announced its intention to begin the process of shearing its lower-margin assets in favor of its core businesses of gas and electricity trading. This move included selling Portland General Electric to another Oregon utility, Northwest Natural Gas, for about $1.9 billion in cash and stock, and possibly selling its 65% stake in the Dabhol project in India.^[20] A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11â€”pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly... Portland General Electric (PGE) is an investor-owned electrical utility that distributes electricity to customers in parts of Portland, Oregon, as well as parts of Multnomah, Clackamas, Marion, Yamhill, Washington, and Polk counties - half of the inhabitants of Oregon. ... NW Natural (NYSE: NWN) is a publicly traded utility headquartered in Portland, Oregon, United States. ...

The crisis begins to unravel

Then, a few days later, on October 17, 2001, Enron announced that its third-quarter results were negative due to one-time charges of over $1 billion. Enron management claimed the losses were mostly due to investment losses, along with charges such as about $180 million in money spent restructuring the company's troubled broadband trading unit. "After a thorough review of our businesses, we have decided to take these charges to clear away issues that have clouded the performance and earnings potential of our core energy businesses," said Kenneth Lay in a statement.^[21] Some analysts were unnerved. "What's next?," asked David Fleischer at Goldman Sachs, an analyst called previously 'one of the company's strongest supporters' ^[22] asserting that the Enron "[m]anagement... lost credibility and have to reprove themselves. They need to convince investors these earnings are real, that the company is for real and that growth will be realized".^[23] The Goldman Sachs Group, Inc. ...

Additionally Enron asserted that the broadband unit alone was worth $35 billion, a claim also mistrusted. "I don't think anyone knows what the broadband operation is worth," said Todd Shipman, an analyst at Standard & Poor's.^[24] Publications Standard & Poors publishes a weekly (48 times a year) stock market analysis newsletter called The Outlook, which is issued both in print and online to subscribers. ...

On October 22, 2001, the share price of Enron fell to $20.65, down $5.40 in one day, following the Securities and Exchange Commission's announcement that it was investigating several suspicious deals struck by Enron, pronouncing "some of the most opaque transactions with insiders ever seen".^[25] Attempting to explain the billion dollar charge and calm investors, Enron's disclosures spoke of "share settled costless collar arrangements," "derivative instruments which eliminated the contingent nature of existing restricted forward contracts," and strategies that served "to hedge certain merchant investments and other assets." Such puzzling phraseology left many analysts feeling ignorant about just how Enron ran its business.^[26] The Securities and Exchange Commission, commonly referred to as the SEC, is the United States governing body which has primary responsibility for overseeing the regulation of the securities industry. ...

In addition, despite the crisis of confidence felt by many observers and Enron investors, the company refused to elaborate on its unusual investment and accounting practices. Jeffrey Skilling, while still in his capacity as CEO, went as far as to use an expletive against a participant in a conference call who was insistent that Enron release balance sheet numbers along with earnings.^[27]

Regarding the SEC investigation, chairman and CEO Lay said, "We will cooperate fully with the S.E.C. and look forward to the opportunity to put any concern about these transactions to rest."^[28]

"There is an appearance that you are hiding something"

Concerns about Enron's liquidity prompted Lay to participate in a conference call on Oct. 23, in which he attempted to reassure investors that the company's cash resources were ample and no further "one-time charges" loomed. Secondly, Lay adamantly insisted there were no improprieties regarding Enron's transactions with partnerships run by Andrew Fastow. Lay emphasized his support for Fastow.^[29] David Fleischer, the analyst at Goldman, was again skeptical, telling Lay and Fastow, "There is an appearance that you are hiding something." Nevertheless, Fleischer persisted in recommending the stock, arguing that he didn't "think accountants and auditors would have allowed total shenanigans."^[30] Lay also attempted to reassure the conferees by stressing that all of Enron's financial and accounting manoeuvres had been scrutinized by their auditor, Arthur Andersen. After several questioners pressed the issue, Lay stated Enron management would "look into providing" more detailed statements for the end of better understanding the company's relationship with the special entities as those run by Fastow.^[31] Market liquidity is a business or economics term that refers to the ability to quickly buy or sell a particular item without causing a significant movement in the price. ... A conference call is a telephone call in which the calling party wishes to have more than one called party listen in to the audio portion of the call. ...

Two days later, on October 25, 2001, despite his reassurances days earlier, Kenneth Lay removed Andrew Fastow from his position. Enron's stock was now trading at $16.41, having lost half its value in a little over a week. "In my continued discussions with the financial community, it became clear to me that restoring investor confidence would require us to replace Andy as C.F.O.," said Lay in the statement announcing Fastow's exit.^[32] However, with Skilling and Fastow now both departed, some analysts feared that shedding light on the company's practices would be made all the more difficult.^[33] Andrew Stuart Fastow (born 22 December 1961) was the chief financial officer of Enron Corporation until the U.S. Securities and Exchange Commission opened an investigation into his conduct in 2001. ...

On October 27 the company began buying back all its commercial paper, valued at around $3.3 billion, in an effort to keep investors from fearing about Enron's supply of cash. Enron financed the re-purchase by depleting its lines of credit at several banks. While the company's debt rating was still considered investment-grade, its bonds were trading at levels slightly below, making future sales problematic.^[34] Commercial paper is a money market security issued by large banks and corporations. ... A line of credit is a type of credit in which a bank undertakes to provide credit to a client during a predefined period. ... Debt Rating is an indication of the risk involved in the purchase of an asset. ... A bond is considered investment grade or IG if its credit rating is BBB- or higher by Standard & Poors or Baa3 or higher by Moodys or BBB(low) or higher by DBRS. Generally they are bonds that are judged by the rating agency as likely enough to meet... Look up bond in Wiktionary, the free dictionary. ...

As October 2001 came to a close, serious concerns were being raised by some observers regarding Enron's possible manipulation of accepted accounting rules; however, some claimed analysis was impossible based on the incomplete information provided by Enron.^[35]

Some now openly feared that Enron was the new Long-Term Capital Management, the hedge fund whose collapse in 1998 threatened systemic failure in the international financial markets. Enron's tremendous presence worried some about the consequences of Enron's possible collapse.^[36] Enron executives were tight-lipped, accepting questions in written form only.^[37] Long Term Capital Management (LTCM) was a hedge fund founded in 1994 by John Meriwether (the former vice-chairman and head of bond trading at Salomon Brothers). ...

Credit rating danger

The central short-term danger to Enron's survival at the end of October 2001 seemed to be its credit rating. It was reported at the time that Moody's and Fitch Investors Service, two of the three biggest credit-rating agencies, had slated Enron for review for possible downgrade.^[38] Such a downgrade would force Enron to issue millions of shares of stock to cover loans it had guaranteed, a move that would dilute the value of existing stock further.

Additionally, all manner of companies began reviewing their existing contracts with Enron, especially in the long term, in the event that Enron's rating were rated below investment grade, a possible hindrance in future transactions.^[39]

Analysts and observers continued their chorus of complaints regarding Enron's difficulty or impossibility of properly assessing a company whose financial statements were so mysterious. Some feared that no one at Enron apart from Skilling and Fastow could completely explain years of mysterious transactions. "You're getting way over my head," said Ken Lay in late August 2001 in response to detailed questions about Enron's business, a reaction that worried analysts.^[40]

On October 29, 2001, responding to growing concerns that Enron might in the short-term have insufficient cash on hand, the news spread that Enron was seeking a further $1-2 billion in financing from the banks.^[41]

The next day, as feared, Moody's lowered Enron's credit rating, or senior unsecured long-term debt ratings, to Baa2, two levels above so-called junk status, from Baa1. Standard & Poor's also lowered their rating to BBB+, the equivalent of Moody's rating. Moody's also warned that it might downgrade Enron's commercial paper rating, the consequence of which might be preventing the company from finding the further financing it sought to keep solvent.^[42] Moodys Corporation (NYSE: MCO) is the holding company for Moodys Investors Service which performs financial research and analysis on commercial and government entities. ... High yield debt (non-investment grade or junk bond) is a business term referring to a corporate debt instrument, usually a bond, that has a higher yield (compared to investment grade debt) because of a high perceived credit risk (default risk). ...

November began with the disclosure that the SEC was now pursuing a formal investigation, prompted by questions related to Enron's dealings with "related parties". Enron's board also announced that it would commission a special committee to investigate the transactions, headed by William C. Powers, the dean of the University of Texas law school. "We welcome this request" to cooperate with the SEC, said Kenneth Lay in a statement.^[43] The next day, an editorial in the New York Times called for an "aggressive" investigation into the matter.^[44] William C. Powers William Charles Powers Jr. ... The University of Texas System comprises fifteen educational institutions in Texas, of which nine are general academic universities, and six are health institutions. ...

On November 2, 2001 Enron succeeded in securing an additional $1 billion in financing, but the news was not universally admired in that the debt was secured with the company's valuable Northern Natural Gas and Transwestern Pipeline.^[45]

Enron seeks help

A few days into November 2001 it became known that the Enron management had been aggressively pursuing new investment or an outright buyout.^[46] The efforts were reported to have been largely unsuccessful. Investor Warren Buffett was approached, but declined.^[47] Other overtures were made to prominent buyout firms such as Clayton, Dubilier & Rice, the Blackstone Group, and Kohlberg Kravis Roberts, all apparently fruitless efforts.^[48] Warren Edward Buffett (b. ... Clayton, Dubilier, and Rice is a private investment firm that has ownership stakes in Brakes (a major European food supplier), Remington Arms, The Hertz Corporation, and Culligan (a provider of water treatment products), amongst other companies. ... The Blackstone Group is a private investment and advisory firm founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman. ... Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City-based private equity firm that focuses primarily on late-stage leveraged buyouts. ...

Sources claimed that Enron was planning to explain its business practices more fully within the coming days, as a confidence-building gesture.^[49] Enron's stock was now trading at around $7, as investors worried that the company would not be able to find a buyer.

After it received a wide spectrum of rejections, Enron management apparently found a buyer when the board of Dynegy, another energy trader based in Houston, TX, voted late at night on November 7 to acquire Enron "at a fire-sale price"^[50] or about $8 billion in stock. Chevron Texaco, which at the time owned about a quarter of Dynegy, agreed to provide Enron with $2.5 billion in cash, specifically $1 billion up front and the rest when the deal was completed. Dynegy would also be required to assume nearly $13 billion of debt, plus any other debt hitherto occulted by the Enron management's secretive business practices^[51], possibly as much as $10 billion in "hidden" debt.^[52] Dynegy and Enron confirmed their deal on November 8, 2001. Dynegy is a large operator of power plants and a player in the natural gas liquids business, based in Houston, Texas. ... Houston redirects here. ...

Commentators remarked on the different corporate cultures between Dynegy and Enron, and on the "straight-talking" personality of the CEO of Dynegy, Charles Watson.^[53] Some wondered if Enron's troubles hadn't simply been the result of innocent accounting errors.^[54] By November, Enron was asserting that the billion-plus "one-time charges" disclosed in October should in reality have been $200 million, with the rest of the amount simply corrections of dormant accounting mistakes.^[55] Many feared other "mistakes" and restatements might yet be revealed.^[56] Charles Chuck Watson was the founder of The Natural Gas Clearinghouse. ...

November 9, 2001 brought with it another major correction of Enron's earnings with a reduction of $591 million over the stated revenue of years 1997-2000. The charges were said to come largely from two special purpose partnerships, called "Jedi" and "Chewco". The corrections resulted in the virtual elimination of profit for fiscal year 1997, with significant reductions every other year. Nevertheless Dynegy was reported to have not lost interest in purchasing Enron despite this disclosure.^[57] Both companies were said to be anxious to receive an official assessment of the proposed sale from Moody's and S&P (considered by some a "do or die"^[58] deal for Enron) presumably to understand the effect on Dynegy and Enron's credit rating the completion of any buyout transaction. In addition, concerns were raised regarding antitrust regulatory hurdles leading to possible divestiture, along with what to some observers were the radically different corporate cultures of Enron and Dynegy.^[59] Divestment (divestiture) is a term in finance and economics. ...

Nevertheless both companies pushed aggressively for the deal, and some observers were hopeful; Charles Watson was praised for his vision in attempting to create the biggest presence on the energy market in one fell swoop.^[60] "We feel [Enron] is a very solid company with plenty of capacity to withstand whatever happens the next few months," said Watson at the time.^[61] One analyst called the deal "a whopper [...] a very good deal financially, certainly should be a good deal strategically, and provides some immediate balance-sheet backstop for Enron."^[62]

Credit issues were becoming more critical, however. Around the time the buyout was made public, Moody's and S&P both lowered Enron's rating to just one notch above junk status. Were the company's rating to fall below investment-grade, its ability to trade might be severely limited subsequent to a curtailment or elimination of its credit lines with competitors.^[63] In a conference call, S&P affirmed that, were Enron not to be taken over, S&P would cut its rating cut to low BB or high B, ratings "not even at the high end of junk".^[64] Furthermore many traders had limited their doing business with Enron, or stopped altogether, fearing more bad news. But Watson again attempted to re-assure, affirming during a presentation to investors in New York that there was "nothing wrong with Enron's business."^[65] He also acknowledged that remunerative steps (in the form of more stock options) would have to be taken to redress the animosity of many Enron employees for management after it was revealed that Lay and other top officials had sold hundreds of millions of dollars worth of stock in the months leading up to the crisis.^[66] The situation was not helped by the disclosure that Kenneth Lay, his "reputation in tatters"^[67], stood to receive a payment of $60 million as a change-of-control fee subsequent to the Dynegy acquisition, and this while many Enron employees had seen their retirement accounts, which were largely based on Enron stock, decimated as the price fell 90% in a year. "We had some married couples who both worked who lost as much as $800,000 or $900,000," said an official at a company owned by Enron. "It pretty much wiped out every employee's savings plan."^[68] Main article: Option A stock option is a specific type of option that uses the stock itself as an underlying instrument to determine the options pay-off (and therefore its value). ...

Watson assured investors that the true nature of Enron's business had been made clear to him: "We have comfort there is not another shoe to drop. If there is no shoe, this is a phenomenally good transaction," he said at the time.^[69] Watson further asserted that Enron's energy trading part alone was worth the price Dynegy was paying for the whole company.^[70]

Other shoes drop

By mid-November, Enron announced it planned to sell about $8 billion worth of underperforming assets, along with a general plan to reduce its scale for the sake of financial stability.^[71]

On November 19, 2001 Enron disclosed to the public further evidence of its critical state of affairs, most pressingly that the company was facing debt repayment obligations in the range of $9 billion by the end of 2002. Such debts were "vastly in excess" of its available cash.^[72] Also, the success of measures to preserve its solvency were not guaranteed, specifically as regarded asset sales and debt refinancing. "An adverse outcome with respect to any of these matters would likely have a material adverse impact on Enron's ability to continue as a going concern," said Enron in a statement.^[73]

Two days later, on November 21, Wall Street was expressing serious doubts that Dynegy would proceed with its deal at all, or would seek to radically renegotiate. Enron's stock price fell $2 to about $7. Furthermore Enron revealed in a 10Q filing that almost all the money it had recently borrowed for purposes including buying its commercial paper, or about $5 billion, had been exhausted in just 50 days. Analysts were unnerved at the revelation, especially since Dynegy was reported to also have been unaware of Enron's rate of cash use.^[74] Form 10-Q is an SEC filing that must be filed quarterly with the US Securities and Exchange Commission. ...

In order to walk away from the proposed buyout, Dynegy would need to legally demonstrate a "material change" in the circumstances of the transaction; as late as November 22, sources close to Dynegy were skeptical that the latest revelations constituted sufficient grounds.^[75]

The SEC announced it had filed civil fraud complaints against Arthur Andersen, Enron's auditor.^[76] A few days later, sources claimed Enron and Dynegy were now actively renegotiating the terms of their arrangement.^[77] Dynegy now demanded Enron agree to be bought for $4 billion rather than the previous $8 billion. Observers were reporting difficulties in ascertaining whether or which of Enron's operations, if any, were profitable. Reports described an en masse shift of business to Enron's competitors for the sake of risk exposure reduction. Finally, a new report from Moody's made Wall Street nervous.^[78]

The deal falls apart

On November 28, 2001, Enron's two worst outcomes came true. Dynegy Inc. unilaterally disengaged from the proposed acquisition of the company and Enron's credit rating fell to junk status. The company, having very little cash with which to run its business, let alone satisfy enormous debts, imploded. Its stock price fell to $0.61 at the end of the day's trading. "Enron is now shorthand for the perfect financial storm," wrote one editorial observer.^[79]

Systemic consequences were felt, as Enron's creditors and other energy trading companies suffered the loss of several percentage points. Some analysts felt Enron's failure highlighted the risks of the post-September 11 economy, and encouraged traders to lock in profits where they could.^[80]

The question now became determining the total exposure of the markets and other traders to Enron's failure. Early figures put the number at $18.7 billion. "We don't really know who is out there exposed to Enron's credit," said one adviser. "I'm telling my clients to prepare for the worst."^[81]

Enron was estimated to have about $23 billion in liabilities, both debt outstanding and guaranteed loans. Citigroup and JP Morgan Chase in particular appeared to have significant amounts to lose with Enron's fall. Additionally, many of Enron's major assets were pledged to lenders in order to secure loans, throwing into doubt what if anything unsecured creditors and eventually stockholders might receive in bankruptcy proceedings.^[82] Citigroup Inc. ... J.P. Morgan Chase & Co. ...

Enron's European operations filed for bankruptcy on November 30, 2001, and it sought Chapter 11 protection in the U.S. two days later on December 2. At the time, it was the biggest bankruptcy in U.S. history, and it cost 4,000 employees their jobs.^[83]^[84] is the 334th day of the year (335th in leap years) in the Gregorian calendar. ... Year 2001 (MMI) was a common year starting on Monday (link displays the 2001 Gregorian calendar). ... Chapter 11 of the Bankruptcy Code governs the process of reorganization under the bankruptcy laws of the United States. ... is the 336th day of the year (337th in leap years) in the Gregorian calendar. ... Notice of closure stuck on the door of a computer store the day after its parent company, Granville Technology Group Ltd, declared bankruptcy (strictly, put into administrationâ€”see text) in the United Kingdom. ...

Aftermath

Kenneth Lay, the former Chairman of the Board and Chief Executive Officer and Jeffrey Skilling, former Chief Executive Officer and Chief Operating Officer, went on trial for their part in the Enron scandal in January 2006. The 53-count, 65-page indictment covers a broad range of financial crimes, including bank fraud, making false statements to banks and auditors, securities fraud, wire fraud, money laundering, conspiracy and insider trading. U.S. District Judge Sim Lake had previously denied motions by the defendants to hold separate trials and to move the case out of Houston, where the defendants argued the negative publicity surrounding Enron's demise would make it impossible to get a fair trial. Image File history File links Ken_lay_enron. ... Image File history File links Ken_lay_enron. ... Kenneth Lee Ken Lay (April 15, 1942 â€“ July 5, 2006) was an American businessman, best known for his role in the widely-reported corruption scandal that led to the downfall of Enron Corporation. ... Image File history File links Skilling_enron. ... Image File history File links Skilling_enron. ... Jeffrey Keith Jeff Skilling (born November 25, 1953) was the CEO of Enron Corporation in 2001. ... Kenneth Lee Ken Lay (April 15, 1942 â€“ July 5, 2006) was an American businessman, best known for his role in the widely-reported corruption scandal that led to the downfall of Enron Corporation. ... Jeffrey Keith Jeff Skilling (born November 25, 1953) was the CEO of Enron Corporation in 2001. ... In legal parlance, a trial is an event in which parties to a dispute present information (in the form of evidence) in a formal setting, usually a court, before a judge, jury, or other designated finder of fact, in order to achieve a resolution to their dispute. ... In the common law legal system, an indictment (IPA: ) is a formal accusation of having committed a criminal offense. ... Bank fraud is a federal crime in many countries, defined as planning to obtain property or money from any federally insured financial institution. ... For a discussion of the legal actions for securities fraud in the United States under the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated thereunder, see the Wiki entry for the Private Securities Litigation Reform Act. ... Wire fraud is a legal concept in the United States Code which provides for enhanced penalty of any criminally fraudulent activity if it is determined that the activity involved electronic communications of any sort, at any phase of the event. ... Money laundering is the practice of engaging in financial transactions in order to conceal the identity, source and destination of the money in question. ... A United States federal judge is a judge appointed by the President of the United States and confirmed by the United States Senate in accordance with Article III of the United States Constitution. ...

Mr. Lay pleaded not guilty to the eleven criminal charges. Lay stated that he was misled by those around him. At the time of his death the U.S. Securities and Exchange Commission (SEC) had been seeking more than $90 million from Lay in addition to civil fines. The U.S. Securities and Exchange Commission, commonly referred to as the SEC, is the United States governing body which has primary responsibility for overseeing the regulation of the securities industry. ...

The case surrounding Mrs. Linda Lay is a difficult one. Mrs. Lay sold roughly 500,000 shares of Enron ten minutes to thirty minutes before the information that Enron was collapsing went public on November 28, 2001. This was information that Enron executives had known for over a year. is the 332nd day of the year (333rd in leap years) in the Gregorian calendar. ... Year 2001 (MMI) was a common year starting on Monday (link displays the 2001 Gregorian calendar). ...

Former managing director of investor relations for Enron Paula Rieker pleaded guilty in federal court to a criminal insider trading charge. The one felony charge against Rieker carries a maximum penalty of ten years in prison and a $1 million fine. Rieker agreed never again to serve as an officer or director of a public company. If a federal court approves the settlement, Rieker will pay the SEC $499,333, the profit from the sale of 18,380 shares of Enron stock. Rieker has been a valuable witness for the government as she prepared earnings releases and conference calls with Enron analysts. Investor relations is a set of activities which relate to the ways in which a company discloses information required for regulatory compliance and good investment judgment to bond and/or shareholders and the wider financial markets. ... Map of the boundaries of the United States Courts of Appeals and United States District Courts The United States district courts are the general trial courts of the United States federal court system. ... For the record label, see Felony Records The term felony is a term used in common law systems for very serious crimes, whereas misdemeanors are considered to be less serious offenses. ...

On December 28, 2005, former CAO Richard Causey pleaded guilty to securities fraud. He will have to serve 7 years in prison and pay $1.25 million to the U.S. Government. Causey has the possibility of only serving 5 years in prison if he cooperates and testifies with Lay and Skilling. is the 362nd day of the year (363rd in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... CAO is the bizspeak acronym for Chief Accounting Officer. ... Richard Causey graduated from the University of Texas with a Masters degree in business and a bachelors degree in accounting. ...

On January 13, 2006 lobbyist William "Art" Roberts pleaded guilty to impersonating Senate staff members during the investigation. Roberts was hired by a German bank in June 2004 to get a letter from a Senate subcommittee stating the bank had done their due diligence investigating the Enron collapse, as part of the bank's defense in a suit filed against it by a London bank. ^[85] is the 13th day of the year in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... Due diligence is a term used for a number of concepts involving either the performance of an investigation of a business or person, or the performance of an act with a certain standard of care. ...

Lay and Skilling were indicted for securities and wire fraud in July 2004, leading to a highly-publicized trial in which Lay was convicted on all six counts and Skilling on 19 of 28 counts on May 25, 2006. On July 5, 2006, Lay died at age 64 while vacationing in Aspen, Colorado, after suffering a heart attack on July 4. Skilling was convicted and sentenced to 24 years, 4 months in a federal prison on October 23, 2006. As well as his sentence of 24 years, 4 months, he was ordered to restore the Enron pension fund with $26 million out-of-pocket. It is expected that he will appeal. Kenneth Lay Jeffrey Skilling The trial of Kenneth Lay, former chairman and CEO of Enron, and Jeffrey Skilling, former CEO and COO, was presided over by federal district court Judge Sim Lake in 2006 in response to the Enron scandal. ... is the 145th day of the year (146th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 186th day of the year (187th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... Out-of-pocket expenses are direct outlays of cash which are not reimbursed. ...

Former Enron executive Paula Rieker has been charged with criminal insider trading. Rieker obtained 18,380 Enron shares for $15.51 a share. She sold that stock for $49.77 a share in July 2001, a week before the public was told what she already knew about the $102 million loss.

Enron's bankruptcy took the form of a liquidation, rather than a restructuring, as initially expected, and even announced on the company's website. Assets considered "non-core", such as Enron's energy and bandwidth trading businesses, the Enron Wind energy unit, and the IT consulting businesses, were divested. Also including in the divestiture process were oil field services company Mariner Energy (in which Enron held a 98% controlling interest) and INSELA, a Venezuelan gas valve and electrical equipment manufacturer in which Enron held 50%. Also sold outright were Enron's paper and forest products companies in the U.S. and Canada, consisting of Garden State Paper Company, Papiers Stadacona, and St. Aurelie Timberlands.

Enron's sole electric utility in the United States, Portland General Electric, was spun off as an independent company in 2006, with its shares disbursed to creditors. Portland General Electric (PGE) is an investor-owned electrical utility that distributes electricity to customers in parts of Portland, Oregon, as well as parts of Multnomah, Clackamas, Marion, Yamhill, Washington, and Polk counties - half of the inhabitants of Oregon. ...

The remainder of Enron's operations were reorganized under two major subsidiaries formed in 2003: CrossCountry Energy, consisting of Enron's domestic gas pipeline interests; and Prisma Energy International, formed from most of Enron's global electricity generation and distribution businesses, formerly referred to as "Enron International". CrossCountry Energy was sold to CCE Holdings, a joint venture of Southern Union and a unit of General Electric, in 2004. The spin-off of Portland General Electric in 2005 left Prisma Energy as Enron's last major business asset. Prisma Energy itself was ultimately sold to Ashmore Energy International in 2006, leaving Enron Corp. as a non-trading "shell" company, now in the final stage of its bankruptcy liquidation. Between the initial proposal of the reorganization plan in 2002, and the formal creation of Prisma Energy International and CrossCountry Energy in 2003, the two proposed companies were referred to within Enron as "InternationalCo" and "PipeCo" respectively. Prisma Energy International Inc. ... â€œGEâ€ redirects here. ...

To reflect its new status as a largely asset-less shell existing solely to manage final payouts to creditors, Enron changed its legal, corporate name to "Enron Creditors Recovery Corporation", d/b/a Enron Corporation, in early 2007.

Perhaps one of Enron's few remaining assets is DealBench, an online transaction and divestiture service, once part of the now defunct EnronOnline. The front page of EnronOnline EnronOnline was considered by many to be the first very successful e-commerce website. ...

Fallout

The long-term trials and implications of Enron's collapse are somewhat unclear, but there is considerable political fallout both in the U.S. and in the UK relating to the money Enron gave to political figures (around US$7 million since 1990). During Clinton's eight years in office, the company and Lay contributed about $900,000 to the Democratic Party. In 1999 and 2000, the company gave $362,000 in soft-money donations to Democrats. Since 1996, between 72% and 94% of yearly American contributions went to the Republican Party, including heavy contributions to George W. Bush's presidential campaign. William Jefferson Bill Clinton (born William Jefferson Blythe III[1] on August 19, 1946) was the 42nd President of the United States, serving from 1993 to 2001. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas Politics Portal Further information: Politics of the United States#Organization of American political parties The Democratic... GOP redirects here. ... George Walker Bush (born July 6, 1946) is the forty-third and current President of the United States of America, originally inaugurated on January 20, 2001. ...

Fallout from the scandal quickly extended beyond Enron and all those formerly associated with it. The trial of Arthur Andersen LLP on charges of obstruction of justice related to Enron helped to expose accounting fraud at WorldCom. The subsequent bankruptcy of that telecommunications firm quickly set off a wave of other accounting scandals. This wave engulfed many companies, exposing high-level corruption, accounting errors, and insider trading. Though at the time of its collapse, Enron was the largest bankruptcy in history, this has been eclipsed by the collapse of WorldCom. For the U.S. Supreme Court case commonly known as Arthur Andersen, see Arthur Andersen LLP v. ... Modern Obstruction of Justice, in a common law state, refers to the crime of offering interference of any sort to the work of police, investigators, regulatory agencies, prosecutors, or other (usually government) officials. ... For a time, WorldCom (WCOM) was the United States second largest long distance phone company (AT&T was the largest). ... Accounting scandals, or corporate accounting scandals are political and business scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations. ... Insider trading is the trading of a corporations stock or other securities (e. ... For a time, WorldCom (WCOM) was the United States second largest long distance phone company (AT&T was the largest). ...

Former Enron CFO Andrew Fastow, the mastermind behind Enron's complex network of offshore partnerships and questionable accounting practices, was indicted on November 1, 2002, by a federal grand jury in Houston on 78 counts including fraud, money laundering, and conspiracy. He and his wife Lea Fastow, former assistant treasurer, accepted a plea agreement on January 14, 2004. Andrew Fastow will serve a ten-year prison sentence and forfeit US $23.8 million, while Lea Fastow will serve a five-month prison sentence and a year of supervised release, including five months of house arrest; in return, both will provide testimony against other Enron corporate officers. Andrew Stuart Fastow (born 22 December 1961) was the chief financial officer of Enron Corporation until the U.S. Securities and Exchange Commission opened an investigation into his conduct in 2001. ... Offshore may refer to oil and natural gas production at sea; see oil platform. ... In the common law legal system, an indictment (IPA: ) is a formal accusation of having committed a criminal offense. ... is the 305th day of the year (306th in leap years) in the Gregorian calendar. ... Also see: 2002 (number). ... In the American common law legal system, a grand jury is a type of jury which determines if there is enough evidence for a trial. ... Money laundering is the practice of engaging in financial transactions in order to conceal the identity, source and destination of the money in question. ... In the criminal law conspiracy is an agreement between two or more people to break the law at some time in the future. ... Lea Weingarten Fastow (born December 1961) is the wife of disgraced former Enron executive and convicted felon Andrew Fastow, and the second former Enron executive to go to prison after the company collapsed due to fraud in December 2001. ... A plea agreement or plea bargain is an agreement in a criminal case in which a prosecutor and a defendant arrange to settle the case against the defendant. ... is the 14th day of the year in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ...

Ben Glisan Jr., a former Enron treasurer, was the first man to be sent to prison in the Enron scandal. He pleaded guilty to one count of conspiracy to commit security and wire fraud. Enron Corporation Enron Corporation is an energy trading and communications company based in Houston, Texas that employed around 21,000 people in mid_2001 (before bankruptcy). ... Look up Treasurer in Wiktionary, the free dictionary. ... In the criminal law, a conspiracy is an agreement between natural persons to break the law at some time in the future, and, in some cases, with at least one overt act in furtherance of that agreement. ... Wire fraud is a legal concept in the United States Code which provides for enhanced penalty of any criminally fraudulent activity if it is determined that the activity involved electronic communications of any sort, at any phase of the event. ...

John Forney, a former energy trader who invented various strategies such as the "Death Star," was indicted in December 2002, on 11 counts of conspiracy and wire fraud. His trial was scheduled for October 12, 2004. His supervisors, Timothy Belden and Jeffrey Richter, have both pled guilty to conspiring to commit wire fraud and currently are aiding prosecutors in investigating this scandal. The Death Star strategy was the name Enron gave to their practice of shuffling energy around the California power grid to receive payments from the state for relieving congestion. ... Wire fraud is a legal concept in the United States Code which provides for enhanced penalty of any criminally fraudulent activity if it is determined that the activity involved electronic communications of any sort, at any phase of the event. ... is the 285th day of the year (286th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... Timothy Norris Belden (born circa 1967) is the former head of trading in Enron Energy Services and considered the mastermind of Enrons scheme to drive up Californias energy prices. ... Jeffrey Richter is a co-founder of Wintellect, a training, debugging, and consulting firm dedicated to helping companies build better software, faster. ...

Jeffrey Skilling was arrested on February 11, 2004, by the FBI. Kenneth Lay was indicted by a federal grand jury on July 7, 2004 for his involvement in the scandal. He pleaded not guilty on July 9. Jeffrey Keith Jeff Skilling (born November 25, 1953) was the CEO of Enron Corporation in 2001. ... is the 42nd day of the year in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... F.B.I. and FBI redirect here. ... Kenneth Lee Ken Lay (April 15, 1942 â€“ July 5, 2006) was an American businessman, best known for his role in the widely-reported corruption scandal that led to the downfall of Enron Corporation. ... In the American common law legal system, a grand jury is a type of jury which determines if there is enough evidence for a trial. ... is the 188th day of the year (189th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ...

On May 25, 2006, the jury in the Lay and Skilling trial returned its verdicts. Skilling was convicted of 19 of 28 counts of securities fraud and wire fraud and acquitted on the remaining nine, including charges of insider trading. He was sentenced to 24 years, 4 months in prison. Lay was convicted of all six counts of securities and wire fraud for which he had been tried, and he faced a total sentence of up to 45 years in prison. ^[86] Lay died on July 5, 2006, before sentencing was scheduled. On July 12, 2006, a potential Enron witness scheduled to be extradicted to the US, Neil Coulbeck, was found dead in a park in north-east London.[1] The US case alleges that Coulbeck and others conspired with former Enron CFO Andrew Fastow.[2] All told, sixteen people pleaded guilty for crimes committed at the company, and five others, including four former Merrill Lynch employees, were found guilty at trial. Eight former Enron executives testified, the star witness being Fastow, against Lay and Skilling, his former bosses. ^[87] Another was Kenneth Rice, the former chief of Enron Corp.'s high-speed Internet unit, who cooperated and whose testimony helped convict Skilling and Lay. In June 2007, he received a 27 month sentence.^[88] is the 145th day of the year (146th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... Lead judge is Sim Lake. ... Securities are tradeable interests representing financial value. ... Wire fraud is a legal concept in the United States Code which provides for enhanced penalty of any criminally fraudulent activity if it is determined that the activity involved electronic communications of any sort, at any phase of the event. ... Insider trading is the trading of a corporations stock or other securities (e. ... is the 186th day of the year (187th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 193rd day of the year (194th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... Neil Coulbeck (b. ... Andrew Stuart Fastow (born 22 December 1961) was the chief financial officer of Enron Corporation until the U.S. Securities and Exchange Commission opened an investigation into his conduct in 2001. ... Merrill Lynch & Co. ...

Pensions

Thousands of Enron employees and investors lost all their savings, children's college funds, and pensions when Enron collapsed. A lawsuit on the behalf of a group of Enron's shareholders has been filed against Enron executives and directors. This lawsuit accuses twenty-nine of these executives and directors of insider trading and misleading the public.

Because the 401(k) plan is a defined contribution plan, there was no PBGC insurance and employees lost the money they invested in Enron stock. They could only sue those considered a fiduciary for breach of their duty of care based on ERISA Section 404. The 401(k) plan is a type of employer-sponsored retirement plan in the United States and some other countries, named after a section of the U.S. Internal Revenue Code. ...

The Pension Benefit Guaranty Corporation is attempting to cover some and possibly all of this.^{[citation needed]} The Pension Benefit Guaranty Corporation (or PBGC) is an independent agency of the United States government created by the Employee Retirement Income Security Act of 1974 (ERISA) to encourage the continuation and maintenance of voluntary private pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance...

Arthur Andersen

On June 15, 2002, Arthur Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron. Since the U.S. Securities and Exchange Commission does not allow convicted felons to audit public companies, the firm agreed to surrender its licenses and its right to practice before the SEC on August 31. On May 31, 2005, the Supreme Court of the United States unanimously overturned Andersen's conviction due to flaws in the jury instructions. Despite this ruling, it is highly unlikely Andersen will ever return as a viable business. The firm lost nearly all of its clients when it was indicted, and there are over 100 civil suits pending against the firm related to its audits of Enron and other companies. It began winding down its American operations after the indictment. From a high of 28,000 employees in the U.S. and 85,000 worldwide, the firm is now down to around 200 based primarily in Chicago. Most of their attention is on handling the lawsuits. is the 166th day of the year (167th in leap years) in the Gregorian calendar. ... Also see: 2002 (number). ... For the U.S. Supreme Court case commonly known as Arthur Andersen, see Arthur Andersen LLP v. ... The U.S. Securities and Exchange Commission, commonly referred to as the SEC, is the United States governing body which has primary responsibility for overseeing the regulation of the securities industry. ... is the 243rd day of the year (244th in leap years) in the Gregorian calendar. ... is the 151st day of the year (152nd in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas US Government Portal The Supreme Court of the United States (sometimes colloquially referred to by the...

Andersen was one of the "Big Five" large international accounting firms. Its demise left only four big international accounting firms (the Big Four accounting firms as now called). This concentration of the industry is still causing difficulty for large corporations that need to use more than one accounting firm for auditing and non-auditing services. In addition, the pricing of accounting services is less elastic as large corporations feel that they must use a Big Four firm. The Big 4, sometimes written as the Big Four, is a group of international accountancy and professional services firms that handles the vast majority of audits for publicly traded companies as well as many private companies. ...

Societal and legal impacts

Enron's collapse also contributed to the creation of the U.S. Sarbanes-Oxley Act (SOX), signed into law on July 30, 2002. It is considered the most significant change to federal securities laws since FDR's New Deal in the 1930s. Other countries have also adopted new corporate governance legislations. This law provides stronger penalties for fraud and, among other things, requires public companies to avoid making loans to management, to report more information to the public, to maintain stronger independence from their auditors, and most controversially, to report on and have audited, their financial internal control procedures. However, certain provisions in the legislation are currently under review in Congress. Before the signing ceremony of the Sarbanes-Oxley Act, President George Bush meets with Senator Paul Sarbanes, Secretary of Labor Elaine Chao and other dignitaries in the Blue Room at the White House on July 30, 2002. ... is the 211th day of the year (212th in leap years) in the Gregorian calendar. ... Also see: 2002 (number). ... There are seven federal statutes that regulate federal securities transactions: Securities Act of 1933 Securities Exchange Act of 1934 Public Utility Holding Company Act of 1935 Trust Indenture Act of 1939 Investment Company Act of 1940 Investment Advisers Act of 1940 Securities Investor Protection Act of 1970 Categories: Stub | United... FDR redirects here. ... The New Deal was the title President Franklin D. Roosevelt gave to the series of programs he initiated between 1933 and 1938 with the goal of providing relief, recovery, and reform (3 Rs) to the people and economy of the United States during the Great Depression. ... Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way in which a corporation is directed, administered or controlled. ...

Securities law historian Joel S. Seligman was quoted in The Washington Post saying, "[t]his was the most important corporate scandal of our lifetimes. It was one of the immediate causes of the Sarbanes-Oxley Act, the governance reforms of the New York Stock Exchange and NASD, and the most consequential reorientation of corporate behavior in living memory." [3] The Washington Post is the largest newspaper in Washington, D.C.. It is also one of the citys oldest papers, having been founded in 1877. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... NASD executive office on K Street in downtown Washington, D.C. NASD, Inc. ...

In California, widespread public anger over the power crisis and its financial impact on the state were a major factor contributing to the recall of Governor Gray Davis and the election of Arnold Schwarzenegger. Joseph Graham Davis Jr. ... Arnold Alois Schwarzenegger (German pronunciation IPA: ) (born July 30, 1947) is an Austrian-born American bodybuilder, actor, and politician, currently serving as the 38th Governor of the U.S. state of California. ...

Class action lawsuit

On April 8, 2002, Lerach Coughlin Stoia Geller Rudman & Robbins, LLP attorneys led by William Lerach filed a consolidated class action lawsuit against Enron Corp. in the U.S. District Court in Houston. On behalf of its clients, Lerach Coughlin seeks relief for purchasers of Enron publicly traded equity and debt securities between October 19, 1998 and November 27, 2001. William S. Lerach (Bill Lerach) is widely recognized as one of the leading securities lawyers in the United States. ...

Lerach Coughlin attorneys moved swiftly to freeze over $1.1 billion in illicit insider trading proceeds. Lerach Coughlin attorneys and investigators interviewed more than 100 witnesses concerning the numerous organizations within Enron, including over 3,000 related entities and partnerships. Lerach Coughlin attorneys sought expedited discovery from both Enron and Enron's auditor, Andersen. Just 24 hours after Andersen revealed it destroyed an untold number of relevant documents concerning the Enron fraud, the attorneys went back to court seeking to preserve all evidence. Lerach Coughlin attorneys' factual investigation also uncovered Enron's extensive document destruction at its Houston headquarters.

The U.S. District Court in Houston has denied a number of motions to dismiss the litigation. The parties are currently engaged in discovery and motion practice; depositions began in the summer of 2004.

Lead Plaintiff, The U.C. Regents, has reached settlements with Lehman Brothers, Bank of America, the Outside Directors, Citigroup, JP Morgan Chase and CIBC totaling over $7 billion for investors. Those settlements are subject to approval by the Court.

Trials

Court membership Case opinions Laws applied 18 U.S.C. Â§ 1512(b)(2)(A) and (B) (2000 version which has since been modified by Congress) Arthur Andersen LLP v. ... The NatWest Three, also known as the Enron Three, are three United Kingdom businessmenâ€”Giles Darby, David Bermingham and Gary Mulgrewâ€”who were extradited to the United States on July 13, 2006 on charges relating[1] to a transaction with Enron Corporation in 2000 when they were working for the... The Classic NatWest logo National Westminster Bank Plc, trading as NatWest, is a commercial bank in the United Kingdom, part of the Royal Bank of Scotland Group. ... Extradition is the official process by which one nation or state requests and obtains from another nation or state the surrender of a suspected or convicted criminal. ... For other uses of terms redirecting here, see US (disambiguation), USA (disambiguation), and United States (disambiguation) Motto In God We Trust(since 1956) (From Many, One; Latin, traditional) Anthem The Star-Spangled Banner Capital Washington, D.C. Largest city New York City National language English (de facto)1 Demonym American... Lead judge is Sim Lake. ...

Trivia

Minute Maid Park (formerly Enron Field and Astros Field) is a baseball stadium in Houston, Texas, that opened in 2000 to house the Houston Astros. ... Houston redirects here. ... Major league affiliations National League (1962â€“present) Central Division (1994â€“present) Current uniform Retired Numbers 5, 24, 25, 32, 33, 34, 40, 42, 49 Name Houston Astros (1965â€“present) Houston Colt . ... Major league affiliations National League (1962â€“present) Central Division (1994â€“present) Current uniform Retired Numbers 5, 24, 25, 32, 33, 34, 40, 42, 49 Name Houston Astros (1965â€“present) Houston Colt . ... Minute Maid Park (formerly Enron Field and Astros Field) is a baseball stadium in Houston, Texas, that opened in 2000 to house the Houston Astros. ... Anatomy of Greed is a book by Brian Cruver detailing the Enron scandal from the authorâ€™s perspective as an employee who worked for the energy giant. ... Brian Dennehy (born July 9, 1938) is a two-time Tony Award-winning American actor who has appeared in movies, on television, and performed in live theater. ... The Wall Street Journal (WSJ) is an international daily newspaper published by Dow Jones & Company in New York City, New York, USA, with Asian and European editions, and a worldwide daily circulation of more than 2 million as of 2006, with 931,000 paying online subscribers. ... Liars poker is a bar game that combines statistical reasoning with bluffing, and is played with the eight-digit serial number on a dollar bill. ... Bonfire of the Vanities refers to an event on 7 February 1497 when followers of the priest Girolamo Savonarola collected and publicly burned thousands of objects in Florence, Italy, on the Shrove Tuesday festival. ... Barbarians at the Gate: The Fall of RJR Nabisco (ISBN 0060161728) is a book by Bryan Burrough and John Helyar, about the leveraged buyout (LBO) of RJR Nabisco. ... Bethany McLean in the movie Enron: The Smartest Guys in the Room. Bethany McLean (born 1971) is a senior editor and business writer for Fortune magazine and is best known as the co-author, with Fortune colleague Peter Elkind, of Enron: The Smartest Guys in the Room, exposing the corrupt... The 78th Academy Awards, honoring the best in film for 2005, were held on March 5, 2006 at the Kodak Theatre in Hollywood, California. ... The Academy Award for Documentary Feature is one of the most prestigious awards for documentary films. ... Federal Energy Regulatory Commission (FERC): The U.S. federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, oil pipeline rates, and gas pipeline certification. ... For other uses, see Playboy (disambiguation). ... Leonardo Wilhelm DiCaprio (born November 11, 1974[1]) is a three-time Academy Award-nominated and Golden Globe Award-winning American actor who garnered world wide fame for his role as Jack Dawson in Titanic. ... Conspiracy of Fools is a book by Kurt Eichenwald detailing the Enron scandal. ...

See also

Timeline of the Enron scandal: // CFO Andrew Fastow begins committing crimes by creating off-book entities for personal enrichment [1] Andrew Fastow creates Chewco in an effort to hide debt and inflate profits but Chewco doesnt meet requirements to keep it off Enrons balance sheet. ...

Enron companies

The front page of EnronOnline EnronOnline was considered by many to be the first very successful e-commerce website. ... Azurix Corp. ... Dabhol Power Plant The Dabhol Power Company was a company based in India and was made to manage and operate the Dabhol Power Plant. ... Enron International Enron International formerly Enron Development was the business unit of Enron responsible for developing power plants and power projects internationaly. ... LJM which stands for Leah, Jeffery, Michael (Andy Fastows wife and children) was a company created in 1998 by Enron s financial wizard, Andrew Fastow to buy poorly performing Enron stock. ...

Enron fallout

Court membership Case opinions Laws applied 18 U.S.C. Â§ 1512(b)(2)(A) and (B) (2000 version which has since been modified by Congress) Arthur Andersen LLP v. ... The California electricity crisis (also known as the Western Energy Crisis) of 2000 and 2001 resulted from the gaming of a partially deregulated California energy system by energy companies such as Enron and Reliant Energy. ... Conspiracy of Fools is a book by Kurt Eichenwald detailing the Enron scandal. ... The Enron Three are 3 United Kingdom businessmanâ€”Giles Darby, David Bermingham and Gary Mulgrewâ€”who are facing extradition to the United States on charges relating to the collapse of the Enron Corporation in 2001. ... J. Clifford Baxter in an undated publicity photo John Clifford Baxter (September 27, 1958 â€“ January 25, 2002) was a former Enron Corporation executive who resigned in May 2001. ...

Corporation-related

Corporate abuse refers to incidents that involve unethical behavior on behalf of a corporation; a case of corporate abuse may be a scandal, fraud, or negligence toward the corporations employees and/or the local community. ... In criminology, corporate crime refers to crimes committed either by a corporation (i. ... Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way in which a corporation is directed, administered or controlled. ... Creative accounting and earnings management are euphemisms referring to accounting practices that may or may not follow the letter of the rules of standard accounting practices but certainly deviate from the spirit of those rules. ... In economics, mark to market is the act of assigning a value to a position held in a tradeable financial instrument based on the current market price for that instrument. ... A vitality curve is a leadership construct, assigning credit with certain proportions of the production to proportions of a producing population. ... The following is a list of notable business failures, known either for marking the end of a well-known brand, for criminal proceedings associated with their demise (often fraud or other corporate crime), or for causing significant financial problems (or suffering from them). ...

References

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^ "Enron net rose 40% in quarter." The New York Times (July 13, 2001 pC12(L) col 4 (6 col): C12(L).
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^ Oppel, Richard A., Jr, and Alex Berenson. "Enron's chief executive quits after only 6 months in job.(Jeffrey Skilling)." The New York Times (August 15, 2001 s0 pC1(N) pC1(L) col 2 (25 col): C1(L)
^ Krugman, Paul. "Enron goes overboard.(Jeffrey Skilling leaves Enron to Kenneth Lay who plans to transform the company)(Column)." The New York Times (August 17, 2001 pA21(N) pA19(L) col 6 (18 col): A19(L).
^ Krugman, Paul. "Enron goes overboard.(Jeffrey Skilling leaves Enron to Kenneth Lay who plans to transform the company)(Column)." The New York Times (August 17, 2001 pA21(N) pA19(L) col 6 (18 col): A19(L).
^ Lay, Ken. "Defending free markets.(response to August 17, 2001 article)(Letter to the Editor)." The New York Times (August 22, 2001 pA22(N) pA18(L) col 4 (4 col): A18(L).
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^ Berenson, Alex. "A self-inflicted wound aggravates angst over Enron.(Statistical Data Included)." The New York Times (Sept 9, 2001 pBU1(N) pBU1(L) col 1 (15 col): BU1(L).
^ Oppel, Richard A., Jr. "Two are promoted as Enron seeks executive stability." The New York Times (August 29, 2001 pC2(N) pC2(L) col 1 (35 col): C2(L).
^ Oppel, Richard A., Jr. "Two are promoted as Enron seeks executive stability." The New York Times (August 29, 2001 pC2(N) pC2(L) col 1 (35 col): C2(L).
^ Oppel, Richard A., Jr. "Two are promoted as Enron seeks executive stability." The New York Times (August 29, 2001 pC2(N) pC2(L) col 1 (35 col): C2(L).
^ Berenson, Alex. "A self-inflicted wound aggravates angst over Enron.(Statistical Data Included)." The New York Times (Sept 9, 2001 pBU1(N) pBU1(L) col 1 (15 col): BU1(L).
^ Berenson, Alex. "A self-inflicted wound aggravates angst over Enron.(Statistical Data Included)." The New York Times (Sept 9, 2001 pBU1(N) pBU1(L) col 1 (15 col): BU1(L).
^ "Enron reaches a deal to sell Oregon utility for $1.9 billion.(Portland General Electric to Northwest Natural Gas)." The New York Times (Oct 6, 2001 pC4(N) pC4(L) col 5 (8 col): C4(L).
^ Gilpin, Kenneth N. "Enron reports $1 billion in charges and a loss." The New York Times (Oct 17, 2001 pC5(N) pC5(L) col 1 (13 col): C5(L).
^ Norris, Floyd. "Enron tries to dismiss finance doubts.(chief brushes off conflict-or-interest doubts)". The New York Times (Oct 24, 2001 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Gilpin, Kenneth N. "Enron reports $1 billion in charges and a loss". The New York Times (Oct 17, 2001 pC5(N) pC5(L) col 1 (13 col): C5(L).
^ Gilpin, Kenneth N. "Enron reports $1 billion in charges and a loss." The New York Times (Oct 17, 2001 pC5(N) pC5(L) col 1 (13 col): C5(L).
^ Norris, Floyd. "Where did the value go at Enron. (sharp drop in stock price)." The New York Times (Oct 23, 2001 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Norris, Floyd. "Where did the value go at Enron. (sharp drop in stock price)." The New York Times (Oct 23, 2001 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Norris, Floyd. "Where did the value go at Enron. (sharp drop in stock price)." The New York Times (Oct 23, 2001 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Norris, Floyd. "Where did the value go at Enron. (sharp drop in stock price)." The New York Times (Oct 23, 2001 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Norris, Floyd. "Enron tries to dismiss finance doubts.(chief brushes off conflict-or-interest doubts)." The New York Times (Oct 24, 2001 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Norris, Floyd. "Enron tries to dismiss finance doubts.(chief brushes off conflict-or-interest doubts)." The New York Times (Oct 24, 2001 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Norris, Floyd. "Enron tries to dismiss finance doubts.(chief brushes off conflict-or-interest doubts)." The New York Times (Oct 24, 2001 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Norris, Floyd. "Enron ousts finance chief as S.E.C. looks at dealings." The New York Times (Oct 25, 2001 pC2(N) pC2(L) col 5 (30 col): C2(L).
^ Norris, Floyd. "Enron ousts finance chief as S.E.C. looks at dealings." The New York Times (Oct 25, 2001 pC2(N) pC2(L) col 5 (30 col): C2(L).
^ Norris, Floyd. "Enron taps all its credit lines to buy back $3.3 billion of debt." The New York Times (Oct 27, 2001 pC2(N) pC2(L) col 5 (7 col): C2(L).
^ Norris, Floyd. "Plumbing mystery of deals by Enron. (questions and answers).(Interview)." The New York Times (Oct 28, 2001 pBU13(N) pBU13(L) col 6 (18 col): BU13(L).
^ Berenson, Alex, and Richard A. Oppel Jr. "Once-mighty Enron strains under scrutiny." The New York Times (Oct 28, 2001 pBU1(N) pBU1(L) col 2 (25 col): BU1(L).
^ Berenson, Alex, and Richard A. Oppel Jr. "Once-mighty Enron strains under scrutiny." The New York Times (Oct 28, 2001 pBU1(N) pBU1(L) col 2 (25 col): BU1(L).
^ Berenson, Alex, and Richard A. Oppel Jr. "Once-mighty Enron strains under scrutiny." The New York Times (Oct 28, 2001 pBU1(N) pBU1(L) col 2 (25 col): BU1(L).
^ Berenson, Alex, and Richard A. Oppel Jr. "Once-mighty Enron strains under scrutiny." The New York Times (Oct 28, 2001 pBU1(N) pBU1(L) col 2 (25 col): BU1(L).
^ Berenson, Alex, and Richard A. Oppel Jr. "Once-mighty Enron strains under scrutiny." The New York Times (Oct 28, 2001 pBU1(N) pBU1(L) col 2 (25 col): BU1(L).
^ Oppel, Richard A., Jr. "Enron seeks additional financing.($1 to $2 billion)(National Pages)." The New York Times (Oct 29, 2001 pA8(N) pA9(L) col 6 (15 col): A9(L).
^ "Enron credit rating is cut, and its share price suffers; concern increases on borrowing capacity.(Moody's Investors Service lowers credit rating)." The New York Times (Oct 30, 2001 pC2(N) pC2(L) col 5 (10 col): C2(L).
^ Berenson, Alex. "S.E.C. opens investigation into Enron; a company fails to explain dealings." The New York Times (Nov 1, 2001 pC4(N) pC4(L) col 6 (13 col): C4(L).
^ "The rise and fall of Enron.(Editorial)." The New York Times (Nov 2, 2001 pA20(N) pA24(L) col 1 (12 col): A24(L).
^ Oppel, Richard A., Jr. "Enron's shares fall and debt rating is cut." The New York Times (Nov 2, 2001 pC11(N) pC11(L) col 1 (16 col): C11(L).
^ Oppel, Richard A., Jr, and Andrew Ross Sorkin. "Enron looks for investors, but finds them skittish; concern grows on energy trader's future." The New York Times (Nov 7, 2001 pC2(N) pC2(L) col 5 (20 col): C2(L).
^ Oppel, Richard A., Jr, and Andrew Ross Sorkin. "Enron looks for investors, but finds them skittish; concern grows on energy trader's future." The New York Times (Nov 7, 2001 pC2(N) pC2(L) col 5 (20 col): C2(L).
^ Oppel, Richard A., Jr, and Andrew Ross Sorkin. "Enron looks for investors, but finds them skittish; concern grows on energy trader's future." The New York Times (Nov 7, 2001 pC2(N) pC2(L) col 5 (20 col): C2(L).
^ Oppel, Richard A., Jr, and Andrew Ross Sorkin. "Enron looks for investors, but finds them skittish; concern grows on energy trader's future." The New York Times (Nov 7, 2001 pC2(N) pC2(L) col 5 (20 col): C2(L).
^ Oppel, Richard A., Jr, and Andrew Ross Sorkin. "Dynegy is said to be near to acquiring Enron for $8 billion." The New York Times (Nov 8, 2001 s0 pC1(N) pC1(L) col 2 (25 col): C1(L).
^ Oppel, Richard A., Jr, and Andrew Ross Sorkin. "Dynegy is said to be near to acquiring Enron for $8 billion." The New York Times (Nov 8, 2001 s0 pC1(N) pC1(L) col 2 (25 col): C1(L).
^ Berenson, Alex, and Andrew Ross Sorkin. "Rival to buy enron, top energy trader, after financial fall.(Dynegy)(Statistical Data Included)." The New York Times (Nov 10, 2001 pA1(N) pA1(L) col 2 (50 col): A1(L).
^ Banerjee, Neela. "Surest steps, not the swiftest, are propelling Dynegy past Enron." The New York Times (Nov 9, 2001 pC5(N) pC5(L) col 1 (14 col): C5(L).
^ Norris, Floyd. "Does Enron trust its new numbers? It doesn't act like it.(Statistical Data Included)." The New York Times (Nov 9, 2001 pC1(N) pC1(L) col 2 (10 col): C1(L).
^ Oppel, Richard A., Jr, and Andrew Ross Sorkin. "Enron admits to overstating profits by about $600 million.(over last 5 years)." The New York Times (Nov 9, 2001 pC1(N) pC1(L) col 2 (35 col): C1(L).
^ Berenson, Alex, and Richard A. Oppel Jr. "Dynegy's rushed gamble on Enron carries some big risks." The New York Times (Nov 12, 2001 pC1(N) pC1(L) col 2 (35 col): C1(L).
^ Oppel, Richard A., Jr, and Andrew Ross Sorkin. "Enron admits to overstating profits by about $600 million.(over last 5 years)." The New York Times (Nov 9, 2001 pC1(N) pC1(L) col 2 (35 col): C1(L).
^ Oppel, Richard A., Jr, and Andrew Ross Sorkin. "Enron admits to overstating profits by about $600 million.(over last 5 years)." The New York Times (Nov 9, 2001 pC1(N) pC1(L) col 2 (35 col): C1(L).
^ Berenson, Alex, and Andrew Ross Sorkin. "Rival to buy enron, top energy trader, after financial fall.(Dynegy)(Statistical Data Included)." The New York Times (Nov 10, 2001 pA1(N) pA1(L) col 2 (50 col): A1(L).
^ Berenson, Alex, and Richard A. Oppel Jr. "Dynegy's rushed gamble on Enron carries some big risks." The New York Times (Nov 12, 2001 pC1(N) pC1(L) col 2 (35 col): C1(L).
^ Berenson, Alex, and Richard A. Oppel Jr. "Dynegy's rushed gamble on Enron carries some big risks." The New York Times (Nov 12, 2001 pC1(N) pC1(L) col 2 (35 col): C1(L).
^ Berenson, Alex. "Suitor for Enron receives approval from Wall St.(Dynegy Inc.)." The New York Times (Nov 13, 2001 pC11(N) pC13(L) col 1 (10 col): C13(L).
^ Berenson, Alex, and Richard A. Oppel Jr. "Dynegy's rushed gamble on Enron carries some big risks." The New York Times (Nov 12, 2001 pC1(N) pC1(L) col 2 (35 col): C1(L).
^ Norris, Floyd. "Gas pipeline is prominent as Dynegy seeks Enron." The New York Times (Nov 13, 2001 s0 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Berenson, Alex. "Suitor for Enron receives approval from Wall St.(Dynegy Inc.)." The New York Times (Nov 13, 2001 pC11(N) pC13(L) col 1 (10 col): C13(L).
^ Berenson, Alex. "Suitor for Enron receives approval from Wall St.(Dynegy Inc.)." The New York Times (Nov 13, 2001 pC11(N) pC13(L) col 1 (10 col): C13(L).
^ Oppel, Richard A., Jr, and Floyd Norris. "Enron chief will give up severance.(Kenneth L. Lay to give up $60.6 million in severance to show he will not profit from merger with Dynegy Inc.)." The New York Times (Nov 14, 2001 pC1(N) pC1(L) col 5 (35 col): C1(L).
^ Oppel, Richard A., Jr. "Employees' retirement plan is a victim as Enron tumbles." The New York Times (Nov 22, 2001 s0 pA1(N) pA1(L) col 2 (35 col): A1(L).
^ Norris, Floyd. "Gas pipeline is prominent as Dynegy seeks Enron." The New York Times (Nov 13, 2001 s0 pC1(N) pC1(L) col 5 (25 col): C1(L).
^ Norris, Floyd. "Did Ken Lay understand what was happening at Enron?." The New York Times (Nov 16, 2001 pC1(N) pC1(L) col 2 (15 col): C1(L). New York Times and New York Post (2000-present).
^ Oppel, Richard A., Jr. "Enron will sell some assets in hope of raising billions; shrinking to try to bolster shaky finances." The New York Times (Nov 15, 2001 pC3(N) pC3(L) col 5 (20 col): C3(L).
^ Oppel, Richard A., Jr, and Floyd Norris. "In new filing, Enron reports debt squeeze.(belated third-quarter results filing with Securities and Exchange Commission)." The New York Times (Nov 20, 2001 pC1(N) pC1(L) col 2 (25 col): C1(L).
^ Oppel, Richard A., Jr, and Floyd Norris. "In new filing, Enron reports debt squeeze.(belated third-quarter results filing with Securities and Exchange Commission)." The New York Times (Nov 20, 2001 pC1(N) pC1(L) col 2 (25 col): C1(L).
^ Oppel, Richard A., Jr. "Enron's growing financial crisis raises doubts about merger deal." The New York Times (Nov 21, 2001 s0 pA1(N) pA1(L) col 1 (20 col): A1(L).
^ Sorkin, Andrew Ross, and Riva D. Atlas. "Risks Too Great To Let Trader Just Die.(Business/Financial Desk)." The New York Times (Nov 22, 2001 pC1(L) col 02 (25 col): C1(L).
^ Norris, Floyd. "From Sunbeam to Enron, Andersen's reputation suffers.(Arthur Andersen accounting firm)(Column)." The New York Times (Nov 23, 2001 pC1(N) pC1(L) col 2 (10 col): C1(L).
^ Oppel, Richard A., Jr. "Trying to restore confidence in Enron to salvage a merger. (with Dynegy)." The New York Times (Nov 28, 2001 pC1(N) pC1(L) col 2 (25 col): C1(L).
^ Oppel, Richard A., Jr. "Trying to restore confidence in Enron to salvage a merger. (with Dynegy)." The New York Times (Nov 28, 2001 pC1(N) pC1(L) col 2 (25 col): C1(L).
^ "An implosion on Wall Street. (the collapse of Enron Corp.).(Editorial)." The New York Times (Nov 29, 2001 pA30(N) pA34(L) col 1 (11 col): A34(L).
^ "Investors pull back as Enron drags down key indexes; doubts are raised about the strength of the recent rally.(Statistical Data Included)." The New York Times (Nov 29, 2001 pC8(N) pC10(L) col 1 (10 col): C10(L).
^ Henriques, Diana B. "Market that deals in risks faces a novel one; a jolt to the freewheeling trading of energy contracts.(Enron's Collapse)(Statistical Data Included)." The New York Times (Nov 29, 2001 pC7(N) pC7(L) col 1 (20 col): C7(L).
^ Glater, Jonathan D. "A bankruptcy filing might be the best remaining choice.(Enron's Collapse)(Statistical Data Included)." The New York Times (Nov 29, 2001 pC6(N) pC6(L) col 1 (20 col): C6(L).
^ Lay and Skilling's day of reckoning. CNN. May 25, 2006. Last accessed November 22, 2006.
^ The 15 Largest Bankruptcies 1980 - Present. BankruptcyData.com, Last accessed November 22, 2006.
^ http://www.bloomberg.com/apps/news?pid=10000103&sid=aKHHN.3en36I&refer=us
^ http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-05-25T180046Z_01_N25441446_RTRUKOC_0_US-ENRON-TRIAL.xml
^ Shaheen Pasha; Jessica Seid. "Lay and Skilling's day of reckoning: Enron ex-CEO and founder convicted on fraud and conspiracy charges; sentencing slated for September", CNNMoney.com, May 25, 2006.
^ John Porretto. "Ex-Enron broadband head sentenced", AP, June 18, 2007.
^ Enron Workers Reveal More, CBS News, June 27, 2002. Last accessed January 2007.
^ Playboy: Women of Enron, IMDb. Last accessed January 2007.

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