Enron history

The History of the Natural Gas Industry Natural gas, primarily methane, was originally an unwanted byproduct of petroleum extraction. For many years when an oil well vented gas it was simply flared; i.

Enron history

Its collapse shook the markets and nearly crippled the energy industry.

Enron Stock Price Chart and Data

While those responsible for the scandal were the senior executives, who concocted the accounting schemes, financial and legal experts determined that none of it would have been possible without help. As a result of negligent oversight by the Securities and Exchange Commission SECEnron history credit rating agencies and the investment banks, Enron was enabled by failed oversight, manipulation, and deceptive practices of these organizations.

Initially, much of the finger pointing was directed at the SEC, which the U. Senate found complicit for its systemic and catastrophic failure of oversight.

However, it was the investment banks, through their manipulation or outright Enron history, that allowed Enron to continue to receive positive research analysis, promoting its stock and bringing billions of dollars of investment into the company.

It was a quid pro quo in which Enron paid the investment banks millions of dollars for their services in return for their backing.

Enronomics In light of the Enron scandal, the term "Enronomics" was coined to describe a creative and often fraudulent accounting technique that involves a parent company making artificial paper-only transactions with its subsidiaries to hide losses the parent company has incurred through business activities.

Transferring debt in this way creates an artificial distance between the debt and the company that incurred it. Parent company Enron continued to hide debt by transferring it on paper to wholly-owned subsidiaries —many of which were named after Star Wars characters—but still recognized revenue from the subsidiaries, giving the impression that Enron was performing much better than it was.

Enroned Another term inspired by Enron's demise is "Enroned," a slang term for having been negatively affected by senior management's inappropriate actions or decisions. Being "Enroned" can happen to any stakeholder, such as employees, shareholders or even suppliers.

For example, if someone has lost their job because their employer was shut down due to illegal activities that they had nothing to do with, they have been "Enroned. As a result of the Enron catastrophe, certain protective measures have been put in place.

The Enron scandal gave us the Sarbanes-Oxley Act ofwhich serves to enhance transparency and criminalize financial manipulation. Further, as a result of Enron's wrongdoings, the Financial Accounting Standards Board FASB standards were strengthened to curtail the use of questionable accounting practices, and more accountability was imposed upon corporate boards in their role as management watchdogs.ENRON CORPORATION.

Enron history

Enron, a corporation headquartered in Houston, operated one of the largest natural gas transmission networks in North America, totaling over 36, miles, in addition to being the largest marketer of natural gas and electricity in the United States.

Jan 18,  · A chronology of Enron Corp. and criminal cases emerging from its collapse: - Houston Natural Gas merges with InterNorth to form Enron, HNG CEO Kenneth Lay becomes CEO of combined company the.

Enron - Wikipedia

Jan 18,  · A chronology of Enron Corp. and criminal cases emerging from its collapse: - Houston Natural Gas merges with InterNorth to form Enron, HNG CEO Kenneth Lay becomes CEO of combined company the.

The story of Enron Corp. is the story of a company that reached dramatic heights, only to face a dizzying fall. Its collapse affected thousands of .

Enron history

Enron was formed in , following a merger between Houston Natural Gas Co. and Omaha-based InterNorth Inc. Following the merger, Kenneth Lay, who had been the chief executive officer (CEO) of. Second, given that Enron was either a buyer or a seller in every transaction, credit risk management was crucial and Enron’s credit was the cornerstone that gave the energy community the confidence that EOL provided a safe transaction environment.

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