![]() ![]() The traders had gambled away all of Enron’s reserves, and Lay had known all along about the risks (Gibney, 2005).įrom 1998 to 2000, Enron’s gross revenues rose from $31 billion to more than $100 billion. ![]() There was a 1987 investigation of two Enron executives at the oil trading unit in Valhalla, New York that revealed offshore accounts and phony books. Enron transformed into a high-tech global enterprise that diversified into trading energy, water, weather derivatives, broadband and electricity.Įarly on, problems at Enron emerged. In 1988, the deregulation of electrical power markets took effect, and Enron transformed from a traditional natural gas energy company focused on energy delivery through gas pipelines to an energy broker company that brought buyers and sellers together (Sims & Brinkmann, 2003). However, in the words of Stein and Pinto (2011), “Our understanding of what transpired at Enron is by no means complete.”Įnron was created in 1986 from a merger of Houston National Gas and InterNorth (a natural gas pipeline company) with Ken Lay as its chair and CEO (Stein & Pinto, 2011). Enron’s rise and fall is the focus of numerous articles in the mainstream, trade and scholarly literature along with mass market books as well as the movie that forms the basis of this paper, “Enron: The Smartest Guys in the Room” (Gibney, 2005). Enron is a story about America’s largest corporate failure at that point in history-and a story about human tragedy. ![]()
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