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The Enron Corporation: A Forensic Investigation
The Enron Corporation: A Forensic Investigation
The Enron Corporation: A Forensic Investigation
corporation
A forensic investigation
« One reason that some
look beyond Enron is
that a fundamental
question remains
unanswered: Was the
company the imperfect
child of a healthy
financial system or the
perfect product of an
unhealthy one? »
Steve Liesman, WSJ
The Enron
corporation
An energy
sector company
with a market
capitalization of
$80 billion
7 th
or 287th
largest American
corporation?
Notional amounts of derivatives mentioned as
assets on Enron’s balance sheet
Planned scarcity
• Mark-to-market accounting
Enron paid corporate income tax only once over the years
1996 to 2000
Leveraging on the company’s
stock
Enron: a « stock-price
pump » company
Text
e
Credit and rating cliffs
Enron would compensate for any loss due
to credit rating’s downgrading
« Partnerships »
End of quarter
« adjustments »
« Incidents »
British gas; fuel additive; the Azurix water
company; Dabhol; Abu Dabi
Bad luck!
« We saw a company punishing
people who had played by the rules
and rewarding people who were
incompetent, scoundrels, or both. »
Investing in a Post-Enron World, 2003