Navigation Links
Enron's dilemma: A corporate governance nightmare

To paraphrase Santayana, managers who do not learn from the mistakes of the past are doomed to repeat them. Enron was a colossal failure in corporate governance.

For example:

Violating the wisdom of recommendations by governance reformers, Ken Lay served as CEO and Chairman of the Board.
Full article >>> ublic offering before selling it. One possible way around this problem would be for Enron to buy a put option from someone who would guarantee purchasing the Rhythms NetConnections stock at the current $56 price when the six-month holding period ended. However, most investors assumed that the Rhythms NetConnections stock price would decline, so the cost of buying a put option on the open market wa......

Full article >>> d the following safeguards to offset anyone's concern that the relationship would favor LJM1 because of Fastow's involvement:

PricewaterhouseCoopers accounting firm would supply an opinion letter certifying the fairness of all transactions between LJM1 and Enron.

All deals between Enron and LJM1 would be presented to the board for final approva......

Full article >>> itimate SPE and violated Generally Accepted Accounting Principles.

LJM1 should have been accounted for as an Enron subsidiary and all of its debt should have been included on Enron's financial statements. After that announcement and correction was made, investors started dumping Enron stock on the market, contributing to the company's implosion.

Post Your Comments:
*Name:
*Comment:
*Email:


(Date:2/23/2017)... Wisconsin (PRWEB) , ... February 23, 2017 , ... ... Drug Discovery Services portfolio to include an array of biochemical analyses ... with reliable data to drive their hit-to-lead and SAR programs, including inhibitor potency ...
(Date:2/23/2017)... SAN JOSE, Calif. , Feb. 23, 2017 ... an exclusive license for two key immunotherapy technologies ... The first technology provides a method to monitor ... therapy such as PD-L1 and CTLA-4.  The second ... detect if a patient is likely to have ...
(Date:2/23/2017)...  Seattle,s upscale Capitol Hill neighborhood, with its swanky shops, parks ... head lice treatment salon to set up shop. But there,s ... a French bistro on E Madison Ave, and CEO ... old lice clinic, we pride ourselves on being a destination ... of the stigma associated with lice. Everyone can get lice ...
(Date:2/23/2017)... ... February 23, 2017 , ... ... novo clearance to begin marketing the SPEAC® System, the Brain Sentinel® Seizure Monitoring ... home or in healthcare facilities during periods of rest. A lightweight, non-invasive monitor ...
Breaking Biology Technology:
(Date:2/22/2017)... Feb. 22, 2017 With the biometrics ... Research identifies four technologies that innovative and agile ... significant share in the changing competitive landscape: multifactor ... authentication.   "Companies can no longer ... security," says Dimitrios Pavlakis , Industry Analyst ...
(Date:2/13/2017)...  RSA Conference -- RSA, a Dell Technologies business, ... enhance fraud detection and investigation across digital environments ... & Risk Intelligence Suite. The new platform is ... from internal and external sources as well as ... from targeted cybercrime attacks. "Fraudsters are ...
(Date:2/8/2017)... 2017  Aware, Inc. (NASDAQ: AWRE ), a ... results for its quarter and year ended December 31, 2016. ... was $3.9 million compared to $6.9 million in the same ... 2016 was $0.6 million compared to $2.6 million in the ... of 2016 was $0.5 million, or $0.02 per diluted share, ...
Breaking Biology News(10 mins):