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:6/27/2016)... 27, 2016  Sequenom, Inc. (NASDAQ: SQNM ... lives through the development of innovative products and services, ... the United States denied its petition to ... of Sequenom,s U.S. Patent No. 6,258,540 (",540 Patent") are ... by the Supreme Court,s Mayo Collaborative Services v. Prometheus ...
(Date:6/27/2016)... ... June 27, 2016 , ... Parallel 6 , the leading software ... Clinical Reach Virtual Patient Encounter CONSULT module which enables both audio and ... clinical trial team. , Using the CONSULT module, patients and physicians can schedule a ...
(Date:6/27/2016)... (PRWEB) , ... June 27, 2016 , ... ... operations for Amgen, will join the faculty of the University of North ... adjunct professor of strategy and entrepreneurship at UNC Kenan-Flagler, with a focus on ...
(Date:6/27/2016)... --  Ginkgo Bioworks , a leading organism design ... awarded as one of the World Economic Forum,s ... innovative companies. Ginkgo Bioworks is engineering biology to ... in the nutrition, health and consumer goods sectors. ... including Fortune 500 companies to design microbes for ...
Breaking Biology Technology:
(Date:5/16/2016)... NEW YORK , May 16, 2016   ... authentication solutions, today announced the opening of an IoT ... to strengthen and expand the development of embedded ... provides an unprecedented level of convenience and security with ... to authenticate one,s identity aside from DNA. EyeLock,s platform ...
(Date:4/28/2016)... , April 28, 2016 First quarter 2016: ... up 966% compared with the first quarter of 2015 ... SEK 589.1 M (loss: 18.8) and the operating margin was 40% ... 0.32) Cash flow from operations was SEK 249.9 M ... revenue guidance is unchanged, SEK 7,000-8,500 M. The operating ...
(Date:4/15/2016)... 2016 Research and Markets has ... Market 2016-2020,"  report to their offering.  , ... ,The global gait biometrics market is expected to ... period 2016-2020. Gait analysis generates multiple ... used to compute factors that are not or ...
Breaking Biology News(10 mins):