What is Enron?

Enron was an American energy conglomerate based in Houston, Texas. During the 90s. She was considered one of the most powerful and successful corporations in the world. In 2001, however, the investigation revealed that the successful image of Enron was created by cheating shareholders, regulatory agencies, employees and the general public. Enron created a permanent reference as a widely recognized symbol for corporate greed and corruption. Lay remained the CEO of Enron during its existence. Government deregulation of energy companies has enabled Enron and similar companies to collect huge profits in the 90's years. It soon joined a wide range of industries, including electricity, by -products, transport, internet and paper production. Numerous entities, including Fortune magazine, quoted Enron as a model company for its high profitability and extensive achievements.

Few people realized that these profits and achievements were all false, generated creativeMancing, careful checking information and direct fraud. Starting at the end of the 90s, ENRON executives, such as Jeffrey Skilling and Andrew Fastow, a campaign that hides business losses from the company's shareholders and the general public. Stock prices are based on the perception of society, not real assets, so these procedures allowed managers to achieve huge personal profits, while their company has lost millions. In 2000, the subsidiary ENRON created an artificial energy crisis in California, which challenged the company's practices.

In 2001, financial analysts and journalists began to focus on Enron; When they could not independently confirm the company's claimed assets, shares prices began to fall. American security for the stock exchange has launched an investigation. Skilling and Fastow were removed from their positions and publicly admitted that they did not understand the politicians of their own spolthe ectober. As investors and shareholders left the ship, Enron was forced to rely on his own assets to survive, but there were no assets. The company announced bankruptcy in December 2001, only months after being one of Wall Street.

Lay, Skilling, Fastow and more than a dozen other people were found guilty of the crimes related to the Enron scandal. Arthur Andersen LLP, the main accounting company, also closed because of its connection with Enron. Almost 90,000 people came between the two companies. ENRON employees have lost more than $ 2 billion US dollars (USD) of pensions and savings connections; The shareholders lost another $ 70 billion. Kenneth Lay died of a heart attack in 2006 before he could be convicted; Skilling and Fastow were still in prison 20110.