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:2/24/2017)... ... ... Chef Jodi Abel has returned from her three-week tour through the ... a number of delicious recipes and new techniques to share with her Lajollacooks4u guests. ... province. It is internationally renowned for its incredible wine farms, beautiful environment, boutiques ...
(Date:2/24/2017)... , Feb. 24, 2017  Driven by consumers, ... are now the fastest growing categories, finds the ... Actives in Personal Care: Multi-regional Market Analysis and ... management consulting firm Kline. "Biotechnology actives ... make them more effective for skin and hair ...
(Date:2/24/2017)... Pa., Feb. 24, 2017  VWR Corporation (NASDAQ: VWR), the ... laboratory and production customers, today reported its financial results for ... Highlights: 4Q16 record quarterly ... 1.0% on an organic basis. ... an organic basis, while the Americas net sales increased 2.5%, ...
(Date:2/23/2017)... ... February 23, 2017 , ... BellBrook Labs ... to include an array of biochemical analyses critical for Lead Discovery. The ... hit-to-lead and SAR programs, including inhibitor potency and selectivity, mechanism of action, and ...
Breaking Biology Technology:
(Date:2/2/2017)... YORK , Feb. 2, 2017  EyeLock LLC, ... released a new white paper " What You Should ... The problem of ensuring user authenticity is a growing ... the authentication of users. However, traditional authentication schemes such ... Biometric authentication offers an elegant solution ...
(Date:1/26/2017)... -- Crossmatch, a leading provider of security and identity management ... fraud, waste and abuse in assistance operations around the ... Disaster Relief conference in Panama City ... foreign assistance organizations throughout Latin America ... largely unacknowledged problem in the foreign assistance and disaster ...
(Date:1/23/2017)... Jan. 23, 2017  The latest mobile market research ... have dropped dramatically. The quarterly average price of a ... $276 in Q4 2016.  There are now 120 sub-$150 ... $116, up from just 28 a year ago at ... to Maxine Most , Acuity Market Intelligence Principal, ...
Breaking Biology News(10 mins):