RE: Where are30 Aug 2020 16:55
Eric, the story of Enron is fascinating. I have my good friend 'Lagerkhan' (Pete) to thank for recommending the most excellent book, 'The Smartest Guys in the Room - the Story of Enron'. I also went on to see the stage play twice! James Parsons could only dream about having a CFO like Andy Fastow - if he (JP) was bent but I am convinced he wasn't. Skilling & Fastow took corporate fraud to a whole new level where not only investors were stung - but employees lost jobs & their shares proved worthless! I can't recommend the book too highly - it certainly opened my eyes. We all should remember the 'three 8s' account that Nick Leeson created to hide losses that his traders had amounted - but Enron CFO created so-called 'SPEs', or 'Special Purpose Entities' - known at Enron as 'Raptor' accounts. These accounts hid the fact that Enron did not in fact make any money. Their share price was artificially inflated by hiding their losses by use of the SPEs. Nosy, pain-in-the-arse journalists asking too many uncomfortable questions brought the whole house-of-cards crashing down. Skilling & Fastow were imprisoned; Chairman Kenneth Lay died of a heart attack & Auditors auditors Arthur Anderson were dissolved due to incompetence at best, downright fraud at worst! The story makes compelling reading...
Crude