The fall of Enron was much more than a business scandal. Not only did the events of October 2001 have a more damaging effect on the markets than 9/11 but, like Watergate, it was an event that sent shivers throughout the whole world. The subsequent unravelling of the truth would bring down CEOs, taint the President, destroy the accountants Arthur Andersen, and call into question corporate governance throughout the US. It was the beginning of the end of confidence in American stakeholder capitalism. This is an in-depth investigation of the fall of Enron.
“malfeasance n. intentionally doing something either legally or morally wrong which one had no right to do. It always involves dishonesty, illegality, or knowingly exceeding authority for improper reasons. Malfeasance is distinguished from “misfeasance,” which is committing a wrong or error by mistake, negligence or inadvertence, but not by intentional wrongdoing. Example: a city manager putting his indigent cousin on the city payroll at a wage the manager knows is above that allowed and/or letting him file false time cards is malfeasance; putting his able cousin on the payroll which, unknown to him, is a violation of an anti-nepotism statute is misfeasance. This distinction can apply to corporate officers, public officials, trustees, and others cloaked with responsibility.”
This is a staggering tale of malfeasance, with a cast of characters that beguiles one’s imagination. Enron had four main businesses, Wholesale Energy, Energy Services, Broadband Services and Gas pipelines. Author’s McLean and Elkin take you through each of these businesses and gives you an idea of how Enron managed to mismanage. Enron with all of it innovation was not able to bring anyone them to fruition. Enron’s real success to was create the one largest cases of corporate deception in the history of this country.
