Enron The Enron Corporation was one of the worlds largest commodities and services companies. Enron was formed in July of 1985 in Houston, Texas, by the merger of Houston Natural Gas and InterNorth of Omaha, Nebraska. During its years in business, Enron marketed electricity and natural gas. It also delivered energy and other commodities and it provided financial and risk management services to customers worldwide. The company rapidly evolved from delivering energy to brokering energy futures.
Enron was, in the 1990?s, was almost universally considered one of the country?s most innovative companies. The company put itself headlong onto the Internet. Press ate this up, along with Wallstreet, sending stock into the stratosphere. Enron was worth about seventy billion dollars at its peak. This company was almost to the top.
Around last October, the company began to admit that they had misstated its income and that the equity value was a few billion dollars less than what was said.
Enron Downfall
English: Enron Complex in Houston Texas
English: Mug shot of Kenneth Lay.Enron revealed that they had made many ?partnerships? with other companies and used them to hide debts. Within two months later, on December 2, 2001, Enron declared bankruptcy. While many people were thrown out of work, thousands of investors lost billions of dollars. Also many employees have seen there life savings completely wiped out because of Enron?s pension scheme was heavily invested in company?s shares.
All during January, expositions poured forth from Enron like stories about shredded documents and allegations towards company officials willfully ignoring the signs. It now became clear that the destruction of the worlds seventh largest company was going to have implications for businesses as well as politics and policies. ?Deregulation of the energy business created the environment for Enron to fall,? say critics. Two federal agencies and at least ten congressional committees are leading the investigation of the...