On December 2, 2001, the Enron Corporation, (NYSE:ENE) filed “Voluntary Petitions for Chapter 11 Reorganization” with the U.S. Bankruptcy Court in the Southern District of New York, earning a place in US financial history as one of the largest bankruptcies, ever … and as poster child (with former accounting firm Arthur Andersen) for blatant fraud, corporate failure and blinding greed.

The Houston based energy giant had 21,000 employees worldwide, which, given ‘careful’ accounting, allowed it to be listed as seventh largest US corporation and earn a spot on both Fortune’s “America’s Most Innovative Company” six consecutive years (1996-2001) and its “100 Best Companies to Work For In America” list (2000).

Formed in 1985 with the merger of Houston Natural Gas and InterNorth, CEO Kenneth Lay aggressively expanded Enron’s brands from its origins as a transmission & distribution company of electricity and natural gas in North America – and power plant, pipelines’ developer internationally. By 2001, Enron’s businesses included marketing and promotion of power and communications bandwidth commodities, a massive risk management division that traded exotic derivatives (weather!) – as well as securities – and numerous offshore partnerships supposedly crafted by former CFO, now Federal prisoner, Andrew Fastow.

Enron’s collapse caused a spectacular stock price plunge (over $85 to mere pennies) and spewed out criminal trials, civil lawsuits, and, of course, a made for TV movie (CBS’s The Crooked E). In 2002 former Enron V.P. for Corporate Development, Sherron S. Watkins, was named a “Person of the Year” by Time for blowing the whistle on Enron improprieties.

news@doubledownmedia.com

11/26/07