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Jeff Skilling and the Enron debacle...



April 04, 2013 – Comments (1)

Justice  is   indeed  dumb and  blind.

Not  to  rehash  the  accounting  scandal  that  forced  Arthur  Anderson to  dissolve  and  for  ten's of  thousands  of  employees  to  lose  their  jobs and  life savings.

Now  remarkably  they  are  talking  about  releasing this scum  of  the earth...

Something about  that  the  twenty  four  year sentence  was  too harsh ?  wtf ?

I remember  at  the time,  talks  of  my  supervisor mentioning how  we  we're  all lucky to have  jobs,  given how  suddenly  20k  people  had  suddenly  just  lost  their  jobs.

As was later discovered, many of Enron's recorded assets and profits were inflated or even wholly fraudulent and nonexistent. One example of fraudulent records was during 1999 when Enron promised to repay Merrill Lynch & Co.'s investment with interest in order to show profit on its books. Debts and losses were put into entities formed "offshore" that were not included in the company's financial statements, and other sophisticated and arcane financial transactions between Enron and related companies were used to eliminate unprofitable entities from the company's books.

Its most valuable asset and the largest source of honest income, the 1930s-era Northern Natural Gas company, was eventually purchased by a group of Omaha investors, who relocated its headquarters back to Omaha; it is now a unit of Warren Buffett's MidAmerican Energy Holdings Corp. NNG was established as collateral for a $2.5 billion capital infusion by Dynegy Corporation when Dynegy was planning to buy Enron. When Dynegy examined Enron's financial records carefully, they repudiated the deal and dismissed their CEO, Chuck Watson. The new chairman and CEO, the late Daniel Dienstbier, had been president of NNG and an Enron executive at one time and was forced out of Enron by Ken Lay. Dienstbier was an acquaintance of Warren Buffett. NNG continues to be profitable now.

Former management and corporate governance

Central Management

Kenneth Lay: Chairman, and Chief executive officer

Jeffrey Skilling: President, Chief operating officer, and CEO (February–August 2001)

Andrew Fastow: Chief financial officer

Rick Causey: Chief accounting officer

Rebecca Mark-Jusbasche: CEO of Enron International and Azurix

Lou Pai: CEO of Enron Energy Services

Forrest Hoglund: CEO of Enron Oil and Gas

Richard Gallagher: Head of Enron Wholesale Global International Group

Kenneth "Ken" Rice: CEO of Enron Wholesale and Enron Broadband Services

J. Clifford Baxter: CEO of Enron North America

Sherron Watkins: Head of Enron Global Finance

Jim Derrick: Enron General Counsel

Mark Koenig: Head of Enron Investor Relations

Joan Foley: Head of Enron Human Resources

Richard Kinder: President and COO of Enron (1990-December 1996); co-founder of Kinder Morgan

Greg Whally: President and COO of Enron (August 2001– Bankruptcy)

Jeff McMahon: CFO of Enron (October 2001-Bankruptcy)

Board of Directors

Robert A. Belfer: Chairman, Belco Oil and Gas Corp

Norman P. Blake Jr.: Chairman, President and CEO, Comdisco, Inc.

Ronnie C. Chan: Chairman, Hang Lung Group

John H. Duncan: Former Chairman of The Executive Gulf and Western Industries Inc.

Wendy L. Gramm: Former Chairman of US Commodity Futures Trading Commission

Ken L. Harrison: Former Chairman and CEO of Portland General Electric

Robert K. Jaedicke: Professor Emeritus of Accounting at Stanford University

Charles A. LeMaistre: President Emeritus, University of Texas M.D. Anderson Cancer Center

John Mendelsohn: President, University of Texas M.D. Anderson Cancer Center

Jerome J. Meyer: Chairman, Tektronix

Paulo V. Ferraz Pereira: Executive Vice President if Group Bozano

Frank Savage: Chairman: Alliance Capital Management

John A. Urquhart: Senior Advisor to the Chairman of Enron

John Wakeham: Former U.K. Secretary of state for Energy

Herbert S. Winokur Jr.: President of Winokur Holdings Inc.

Enron traded in more than 30 different products, including the following:

Products traded on EnronOnline PetrochemicalsPlasticsPowerPulp and paperSteelWeather Risk ManagementOil and LNG transportationBroadbandPrincipal investmentsRisk management for commoditiesShipping / freightStreaming mediaWater and wastewater

It was also an extensive futures trader, including sugar, coffee, grains, hog, and other meat futures. At the time of its bankruptcy filing during December 2001, Enron was structured into seven distinct business units.

1 Comments – Post Your Own

#1) On April 10, 2013 at 10:44 AM, drgroup (67.81) wrote:


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