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:2/10/2016)... , February 10, 2016 Early-career researchers ... Peru , Uganda and ... work in health and nutrition   Indonesia , ... Uganda and Yemen are being honored ... epidemiology. They are also celebrated for mentoring young women scientists who are ...
(Date:2/10/2016)... New York, New York (PRWEB) , ... ... ... Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) today announced that it has joined the ... vaccines and immunotherapies for infectious diseases and cancer. , The Human ...
(Date:2/10/2016)... ... February 10, 2016 , ... Benchmark ... today the promotion of two long-standing principal investigators (PI) to the roles of ... Research and Development. , Dr. Laurence Chu, a Benchmark Research PI in the ...
(Date:2/10/2016)... ... February 10, 2016 , ... PatientCrossroads announces ... the secure online PatientCrossroads platform, has exceeded both its one-year and overall recruitment ... PROMPT study, which seeks to advance understanding of the hereditary risks for certain ...
Breaking Biology Technology:
(Date:1/27/2016)... 2016  Rite Track, Inc. a leading semiconductor equipment ... Chester, Ohio announced today the acquisition of PLUS ... in Austin, Texas , will significantly ... modifications, installations and technical support offerings for TEL Track ... commented, "PLUS has provided world class service including refurbishment, ...
(Date:1/21/2016)... 2016 --> ... research report "Emotion Detection and Recognition Market by Technology (Bio-Sensors, ... Expression, Voice Recognition and Others), Services, Application Areas, ... 2020", published by MarketsandMarkets, the global Emotion Detection ... 22.65 Billion by 2020, at a CAGR of ...
(Date:1/15/2016)... Rico , Jan. 15, 2016 Recent ... and small to find new ways to ensure data ... iOS and Android that ... on biometrics, transforming it into a hardware authorization token. ... users swipe their fingerprint on their KodeKey enabled device ...
Breaking Biology News(10 mins):