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:5/24/2016)... ... 2016 , ... Last week, Callan Capital, an integrated wealth management firm specializing ... of San Diego Life Science event at the Estancia La Jolla Resort and Spa. ... with speakers Dr. Rich Heyman, former CEO of Aragon and Seragon, and Faheem Hasnain, ...
(Date:5/23/2016)... ... 23, 2016 , ... The need for blood donations in South Texas and across the nation ... Blood & Tissue Center, blood donations are on the decline. In fact, donations across the ... 21 percent in South Texas in the last four years alone. , There is no ...
(Date:5/23/2016)... , May 23, 2016 Zimmer Biomet Holdings, ... healthcare, today announced that its Board of Directors has approved ... the second quarter of 2016. The cash ... about July 29, 2016 to stockholders of record as of ... of dividends are subject to approval of the Board of ...
(Date:5/23/2016)... LONDON , May 23, 2016 ... Efficiency by 40% - Frontage Implement a Single Platform ... Quality, Compliance and Traceability Within the Bioanalytical lab Frontage ... the United States and China ... across its laboratory facilities. In addition to serving as the global ...
Breaking Biology Technology:
(Date:3/22/2016)... , March 22, 2016 ... report "Electronic Sensors Market for Consumer Industry by Type ... Others), Application (Communication & IT, Entertainment, Home ... Global Forecast to 2022", published by MarketsandMarkets, ... expected to reach USD 26.76 Billion by ...
(Date:3/17/2016)... March 17, 2016 ABI Research, the ... the global biometrics market will reach more than ... increase from 2015. Consumer electronics, particularly smartphones, continue ... sensors anticipated to reach two billion shipments by ... Dimitrios Pavlakis , Research Analyst at ABI Research. ...
(Date:3/14/2016)... HANOVER , Allemagne, March 14, 2016 /PRNewswire/ ... http://www.apimages.com ) - --> - ... ) - --> ... les solutions biométriques, fournit de nouveaux lecteurs d,empreintes ... lecteur LF10 de DERMALOG sera utilisé pour produire ...
Breaking Biology News(10 mins):