who's fault was it? was it the accountant's?
2007-11-15 02:15:02 · 6 answers · asked by bailaen_ny 2 in Politics & Government ➔ Law & Ethics
was it the accountant's fault?
2007-11-15 02:31:47 · update #1
There is more to Enron than meets the eye. It wasn't the accountants as much as corporate greed that brought the company down. They changed corporate reports to make their stock reports look better to gain more investors.
Secondly, the way they made the money was totally unethical.
They were stationed in California and supposedly an electrical power distribution company. They realized they could under theory "send" power out of state and bring it back to California at ten times the "cost" because they were "bringing" power into California.
The Chief Executive Financial Officer was making up names of shell companies to send energy, mostly made up of names from star wars, apparently he doesn't have that much creativity.
The Chief Executive Officer Ken Lay, claimed to be ignorant of the whole affair; I guess companies hire CEO's at millions of dollars not to be aware of what their company is doing.
I think they ought to make a ten story pig to be placed in front of Wall Street, in memory to Key Lay and the Enron Company.
2007-11-15 02:29:05 · answer #1 · answered by cheap advice 3 · 1⤊ 0⤋
There's a great documentary about it called: Enron: the smartest guys in the room. I think they all knew about it and planned to get as rich as they could and they did until they were caught, sadly this is the story of many corporations, enough isn't enough, they will always want more, no matter how they get it, and we pay for it. Ken Lay CEO was good friends with the Bushes, figures.
2007-11-15 10:20:45 · answer #2 · answered by Ktcyan 5 · 0⤊ 2⤋
Enron grew wealthy, it claimed, through its pioneering, due largely in thanks to marketing and promotion of power and communications bandwidth commodities and related derivatives as tradable financial instruments, including exotic items such as weather derivatives. Enron was hailed by many, including labor and the workforce, as an overall great company, praised for its large long-term pensions, benefits for its workers and extremely effective management until its exposure in corporate fraud.
As was later discovered, many of Enron's recorded assets and profits were inflated, or even wholly fraudulent and nonexistent. Debts and losses were put into entities formed "offshore" that were not included in the company's financial statements, and other sophisticated and arcane financial transactions between Enron and related companies were used to take unprofitable entities off the company's books.
It was the upper management and CEOs of the company who created it. George Bush didn't have anything to do with it. Sheesh.
2007-11-15 10:26:55 · answer #3 · answered by Texas Horse Lover 4 · 2⤊ 2⤋
There's a great movie out: "The Smartest Boys in the Room". It is a documentary (get it on Netflix) that goes thru the whole thing.
Check out Ken Lay and the rest at the top and how greed motivated them to STEAL millions.
2007-11-15 10:21:31 · answer #4 · answered by Anonymous · 1⤊ 1⤋
It is neat that the first poster makes a connection between Lay and Bush while ignoring the fact that Lay and Clinton were tight as well
2007-11-15 10:28:41 · answer #5 · answered by Anonymous · 0⤊ 1⤋
I'm not too sure of the details like most people....
But I'm inclined to blame George Bush, and I think it is the reason for all poverty and probably racism too.
2007-11-15 10:21:56 · answer #6 · answered by jskmarden 4 · 0⤊ 2⤋