Notes - Overall Summary - Enron PDF

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SOME NUMBERS IM NOT SURE OF SO WATCH MOVIE AND TALLIFY IT Enron: 16 years to go 10 m of assets to 64 million took few weeks to collapse Pride, arrogance, greed Enron was a house of cards built on a gasoline Largest corporate of bankcruptcy In reality its a story about people not money Enron employee committed suicide, cliff banker Jefferey skilling said “they called them child molestors” 7th largest corporation valued 70 billion$, future of energy Keenly and Jeff skilling (smartest guys in the room) George w Busch helped the president and called ken “Kenny boy” 300$ m dollars earned over last 4 years and money is gone Convert 66b dollars and got 30m out of enron 20k employees lost their jobs Ken lay worked a lot of jobs to earn. Phd in economics, thought about energy and gas and could change them 1985 enron was found through the merger of gas pipelines They wanted to get govt. out of energy business 1987- bets on enron if the price will go up of oil or decrease but Enron’s oil always went up high. Doubtful Louis borget - president of the company Accountant says they’re playing games The traders were gambling and lay encouraged the traders to gamble and earn more “please keep making us millions” The traders had gambled all of enron reserves and ken lay knew. Muckleroy acted fast and saved the company Borget was arrested for fraud for a year Jeff skill wanted something different like energy "Were gonna sell power out of this power plant in next ten years” hfv accounting term Jeff said money was the only motivation for ppl Percy process is the most important procress Got 5m dollar bonus Jeff had a strong belief that enron was a success “Incondensibly brilliant” Jeff skilling They went to do adventurous trips where people died and got seriously injured He called lu pie my eye cbm. Mysterious figure. Was never there in his office. Money and strippers motivated him. He was the ceo Lu pie lost interest in ees as numbers went high. He made the highest amount 250m

He became the second largest land owner in Colorado and the company made loss of 1b after he left Stock prices were only going up so everyone got the shares. At a point it became largest bull market. They were so good at acting that they convinced coorporate America that they were the smartest They took enormous risk Enron was soaring but in reality their profits weren’t going up They invested in India and they didn’t realize indue couldnty pay so they lost billions. Merger with pge. Become the ;largest market All the pge was Enron Enron stock kept rising while businesses kept losing money Trading gas in other forms pf energy Enron was struggling with technology and blockbusters fail;ed Executive started selling their shares Enron wanted to trade weather- new plan In 2000, the stock price went up 90 percent whereas other technologies were dropping so it was the shining star Some reporter started looking at figures and realized something was wrong like fraud Whenever someone asked a question about Enron they thought they wanted to throw rocks at the company. When they had the interview they said “idc what u say about the company but don’t make me look bad” The financial didn’t make sense that’s what Bethany didn’t Andy wanted to impress his boss that’s why he kept making the stock price go up but in reality it was in 30 m depth Partnership with LJM (by manipulating them) in order to get money out of them All the banks put at least 25m each in the partnership The banks were all participant in all wrong doing They never release a balance sheet or cashflow statement He called an investor “asshole because he asked why” Two blackouts in California even though they had supply Tim belden smartest guys. Enron shut out the electricity for 3-4 hours and their prices skyrocketed 2b earned by betting for Enron They took all the profit from California Scientists 9b dollars Enron took from California Public started hating ken lay George Busch ken lays friend became president The traders ran Enron All through summer stock price went down Enron and Jeff stepped down from ceo in 2001 He was smart enough to know that this company was going to collapse Ken lay became the next ceo Enron released financial statements and realized they were —— Andy was fired right after everyone found he contributed 45b in Enron Everyone went after Andy Ken lay put the blame on Andy and saying he didn’t know what he was doing

Dec 2 after 4 months of Jeff resigning Enron went bankrupt Jan 25 2002, 7 weeks after Enron bankruptcy cliff committed suicide. He was sued civilly for 30m dollar Andy agreed to forget 23m$ and his sentence reduced to 10 years in exchange for testifying against other executive councils “Were not doing anything wrong” as everyone was involved 29k ppl lost their jobs Ken lay arrested along w Jeff Lesson learnt : they didn’t asked why enough Personal reactions: - Surprised and shocked how inhuman can people be - People only see their benefit (Sad) - People are dumb that they don’t see fraud - Angry that how could they do this - Surprised that most workers helped ken lay and jeff skilling - Loved that ken lay got caught and hated by people and that they protested - Relief that it came to an end before they took money from the entire US -...