Beruflich Dokumente
Kultur Dokumente
http://money.cnn.com/ne
ws/specials/enron/
Categories of Information
you must know
1. History of Enron and Andersen
2. Key Players in Scandal
3. How investors were scammed
Types of white-collar crime
4. How scandal was discovered
5. Verdicts in Court
6. Effects on the financial industry:
New legislation
What was Enron?
Enron (former NYSE ticker symbol:
ENE)
world's leading electricity, natural gas,
and energy company
based in Houston, Texas,
21,000 employees in over 30 countries
stated revenues of more than $100
billion in the 1990s
The Smartest Guys in the
Room - California and Traders
http://www.youtube.com/watch?v=dvLZBv8HsO4&feature=related
What was Arthur Andersen
Accounting?
one of the Big Five accounting
firms for public and private
companies around the world
over $9 billion in sales during
2001.
85,000 employees working in 84
countries
Who were some of Enron’s
clients?
Teeside
Bahia Las Minas
Puerto Quetzal Power Project
PQP LLC
Empresa Energetica Corinto
EcoElectrica
Puerto Plata Power Project
Modesto Maranzana Power Plant
Cuiaba Integrated Project
Nowa Sarznya Power Plant
And many more…
Key Events
2.)Jeffrey Skilling
President of Enron, heading Enron's
North American operations.
Key people
3.)Andrew Fastow
CFO: from May 1998 until October 2001.
Fastow, who was promoted to CFO in his
mid-thirties, earned accolades for
diminishing Enron's debt and
restructuring the company's finances to
allow Enron to diversify its business.
Created false business partnerships with
fictional companies throughout the world
in order to hide debt
Key people
2. “Andersen”
consisted of Arthur Andersen LLP and Andersen
Worldwide S.C.
3. Law Firms
Vinsin & Elkins, Kirkland & Ellis
4. Investment Banks
J.P. Morgan & Chase, CitiGroup,
Bank of America, etc.
Involvement of the Banks
Banks lent Enron money often without
collateral
Banks “were pivotal players in the mysterious
offshore partnerships that ultimately brought
Enron down
“Citigroup and J.P. Morgan served as lead
manager on more than $20 billion in
syndicated bank loans to Enron”
WITHOUT asking why they needed the $$
The Verdicts…
http://www.youtube.com/watch?
v=di2XVJljadA&NR=1&feature=f
vwp
What happened to Kenneth Lay?
http://www.nytimes.com/learning
/teachers/featured_articles/2002
0117thursday.html