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Enron Essay

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Below is an essay on "Enron" from Anti Essays, your source for research papers, essays, and term paper examples.

Enron began in 1985 in Houston, Texas. A merger began between Houston Natural Gas and Omaha, Nebraska’s natural gas company, InterNorth, to form the natural gas pipeline company called Enron. It grew rapidly and became the seventh largest company according to Fortune 500. In 2000, the annual revenue reached $100 billion, and the stock price peaked at $90. By 2000, Enron was the largest natural gas merchant in North America. Houston was the center of the energy industry. The merger with PGE connected Enron with California electricity. The company employed 21,000 people. By the next year the stock price began to fall dramatically. On November 30, 2001, the stock price was $0.26. The collapse of Enron cost investors billions of dollars and liquidated almost 2.1 billion in pension plans.
Kenneth Lay is the founder of Enron. He went from poor preacher’s son to millionaire. He began his career in Exxon then moved to Houston Natural Gas where he helped create the merger that was Enron. When he made Skilling CEO, he was still the chairman until 2001. Skilling resigned and Lay reassumed his position. Jeffery Skilling is the former CEO of Enron. Lay hired him in 1990. He assisted in recording anticipated future profits as actual gains in order to inflate the stock price. Cliff Baxter was an Enron executive who sold $30 million worth of Enron stock during the months prior to the bankruptcy. He questioned Skilling on several business practices, and they did not get along. Baxter resigned in 2001 and later committed suicide. Andy Fastow earned an MBA from Northwestern University and joined Enron in 1990 as the CFO. He was the key element in cooking the books for Enron.
The major causes of bankruptcy for Enron were the accounting documents that failed to show their true condition and the people behind those reports. There were the people who should have been asking more question and the wrong-doers. The corporate culture encouraged greed and fraud. Enron’s bankruptcy is one...

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