Essay about Overview of the Enron Scandal

Essay about Overview of the Enron Scandal

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Enron Corporation was an energy company founded in Omaha, Nebraska. The corporation chose Houston, Texas to home its headquarters and staffed about 20,000 people. It was one of the largest natural gas and electricity providers in the United States, and even the world. In the 1990’s, Enron was widely considered a highly innovative, financially booming company, with shares trading at about $90 at their highest points. Little did the public know, the success of the company was a gigantic lie, and possibly the largest example of white-collar crime in the history of business.
The roots of the lies start with former Enron CEO Kenneth Lay. This man helped bring together a number of smaller energy companies, namely InterNorth International and Houston Natural Gas Corporation, through horizontal mergers to form Enron Corporation. Lay fought for natural gas and electricity deregulation, which would open opportunities for huge profit in the industry. In 1994, states were given the choice of deregulation for these utilities, meaning customers could choose their utilities provider instead of being cornered by one company. Enron owned subsidiaries that provided energy to places across the entire country, while also being involved in international business. With the corporation seemingly in line for extensive gains in revenue, then-CEO Lay pledged fifteen percent annual gains in profit to investors. This is when the company started a downhill spiral, which it never seemed to recover from.
Just seven states decided to deregulate electricity markets by 1997, something that Enron Corporation spent millions of dollars on lobbying for. Without more states opting for deregulation, the company’s opportunity for the massive gains in profit lay out ...

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...ord, Krysten. "Lay Surrenders to Authorities." CNN Money (2004): n. pag. Web. .
Enron: The Smartest Guys in the Room. Dir. Alex Gibney. 2005. Online.
"The Fall of Enron." NPR (n.d.): n. pag. NPR. Web. .
Kurtz, Howard. "The Enron Story That Waited To Be Told." The Washing Post, n.d. Web. .
Lashinsky, Adam. "Enron Online." The Street (2000): n. pag. Web. .
McLean, Bethany. "Is Enron Overpriced?" CNN Money. N.p., n.d. Web. .
Seabury, Chris. "Enron: The Fall Of A Wall Street Darling." Investopedia. N.p., n.d. Web. .

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