This is the shocking story of the collapse of America's seventh largest company. Founded in 1985, Enron soon expanded beyond imagination, venturing into new territories such as internet trading and using state of the art financial and technical solutions.In the 90s Enron operated the largest eCommerce business in the world. The company's revenues soared. What was $50 billion in revenue in 1999 doubled to $100 billion in 2000. The sky seemed the limit.
Early in 2001 clouds appeared on the horizon. Enron's stock prices eroded from $90 to $40 by the end of July 2001. In mid-August, CEO Skilling resigned suddenly and whistleblower Sheron Watkins informed Kenneth Lay about questionable accounting practices. Stock prices continued to fall.
In October of that year, Enron announced a downward adjustment to its results of $1 billion. Stocks nosedive to $12. In December Enron had to file for bankruptcy as stock prices dropped below one dollar.
An energy giant collapses in the shortest possible time, leaving its employees, shareholders, and creditors out in the cold. Is Enron an incidental case or the tip of an iceberg? Or is it the prelude to a financial meltdown resulting from a combination of wrong American and Japanese economic policies?
