The History of the Natural Gas Industry Natural gas, primarily methane, was originally an unwanted byproduct of petroleum extraction. For many years when an oil well vented gas it was simply flared; i.
The rise and fall of Enron: May 25, May 25, Enron's origins date back to when it began life as an interstate pipeline company throughthe merger of Houston Natural Gas and Omaha-based InterNorth. From the pipeline sector, Enron began moving into new fields.
Inthe company launched its broadband services unit and Enron Online, the company's website for trading commodities, which soon became the largest business site in the world.
About 90 per cent of its income eventually came from trades over Enron Online. Growth for Enron was rapid.
Itranked as the seventh-largest company on the Fortune and the sixth-largest energy company in the world. However, cracks began to appear in Chief financial officer Andrew Fastow was replaced, and the U.
Securities and Exchange commission launched an investigation into investment partnerships led by Fastow. That investigation would later show that a complex web of partnerships was designed to hide Enron's debt.
Investors had lost billions of dollars. WorldCom's collapse would later stealthat dubious honour. Roughly 5, Enron employees subsequently lost their jobs. The next month, the U. In JanuaryFastow agreed to a plea bargain and a year sentence. He pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud.
He also agreed to cooperate with federal prosecutors. In February, Skilling entered a plea of not guiltyto 40 charges, including wire fraud, securities fraud, conspiracy, insider trading and making false statements on financial reports. Lay was charged with fraud and making misleading statements in July.
He pleaded not guilty to the 11 charges. Lay and Skilling both testified for more than a week in their own defence. Some of the charges against them were dropped. Prosecutors alleged that Lay and Skilling used "accounting tricks, fiction, hocus-pocus, trickery, misleading statements, half-truths, omissions and outright lies" to commit their crimes.
Lawyers for the two accused said their clients may be guilty of bad business judgment at Enron, but they never broke the law.
Defence lawyers also argued that former Enron executives who took plea deals and testified against Lay and Skilling accepted responsibility for crimes they didn't commit. Testimony wrapped up, with the jury beginning deliberations on May 17 and presenting the verdict on May The story of Enron Corp.
is the story of a company that reached dramatic heights, only to face a dizzying fall. Its collapse affected thousands of employees and shook Wall Stree t to its core. You, Mr. Lay, were running whatpurported to be the seventh largest corporation inAmerica."-Senator Peter Fitzgerald (R-IL) to Enron CEO Kenneth Lay,Senate Commerce Science & Transportation's Subcommittee,Hearing on Enron, 2/12/02 The speed of Enron's rise and fall is truly astonishing and perhapsthe single most important story of corporate failure in thetwenty-first leslutinsduphoenix.coms: Compounding the problem toward the end was the precipitous fall in the value of Enron stock.
Enron conducted business through thousands of SPEs.
The most controversial of them were LJM Cayman LP and LJM2 Co-Investment LP, run by Fastow himself. The Rise and Fall of the Enron Corporation The Rise and Fall of the Enron Corporation Malay Blama Leg Summer Quarter Prof.
D. F. Page Strayer University August 9, Abstract Enron was an American energy trading and communication company based in Houston, Texas.
It was formed in by Kenneth Lay after merging with Houston Natural Gas and InterNorth companies. The Enron story was perfect for the dotcom-driven stock market boom of the '90s. With its roots in the utility business, the company enjoyed a solid reputation for .
Growth for Enron was leslutinsduphoenix.com , the company's annual revenue reached$ billion US. Itranked as the seventh-largest company on the Fortune and the sixth-largest energy company in the world.