Enron And The Watergate Of The Vietnam War

As time progressed and the investigation began to uncover the truth about what transpired at the Watergate apartment complex several things became evident: most of the burglars were ex-CIA and ex-FBI personnel, the burglars were paid with money directly from the re-election campaign and President Nixon not only knew about and sanctioned the break-in but deliberately attempted to cover it up. When called before Congress to testify about his knowledge, White House staffer John Dean testified that Nixon and his aides attempted to “stonewall” the investigation. As Congress continued its inquiry, it became clear

On October 16, Enron announced a $638 million loss for the third quarter, and Wall Street reduced the value of stockholders’ equity by $1.2 billion. Enron announced November 8, that it had overstated earnings over the past four years by $586 million and that it was responsible for up to $3 billion in obligations to various partnerships. A $23 billion merger from rival Dynegy was dropped November 28 after lenders downgraded Enron’s debt to junk bond status.

After the break-in, Nixon needed to protect his image so that American’s could still trust him. To accomplish this, he let a number of employees take the blame for him. The Watergate Seven were a group of men involved in the scandal, who were also advisors and aides to President Nixon. On January 8, 1973, these men were put to trial. With urges from Nixon, five of the seven pleaded guilty. Then on January 30, 1973, six of Nixon’s aides and the lawyer for his re-election committee were charged with perjury, obstruction of justice, and conspiracy to cover-up the break in. This included John Mitchell, Harry Haldeman, John Ehrlichman, Charles W. Colson, Gordon Strachan, and Kenneth Wells Parkinson. However, after the trial, CIA operative, James W. McCord, wrote a letter to Judge John Sirica. In which he claimed that the defendants had pleaded guilty under duress. He also said that they committed perjury and that others were involved in the Watergate break-in. Leading to further pressure being put on Nixon and his alleged involvement in the break-in. Eventually, Nixon’s deceitful involvement would be revealed to the American public.

This was no ordinary robbery that happened on the morning of June 17, 1972. The burglars were connected to President Richard Nixon’s reelection campaign, and the prowlers had been caught while attempting to wiretap phones and steal secret documents. The historians of this decade are not sure whether or not President Richard Nixon knew about the Watergate espionage operation before it happened. However, History.com states, President Nixon, okayed

Watergate is the popular name for the political scandal and constitutional crisis that began with the arrest of five burglars who broke into the Democratic National Committee headquarters at the Watergate office in Washington D.C. on the night of June 17, 1972. It ended with the resignation of president Richard M. Nixon. The burglars and two co-potters-G. Gordon Liddy and E. Howard Hunt were indicated on charges of burglary, conspiracy, and wiretapping. Four monthes later, they were convicted and sentenced to prison terms by District Court Judge John J. Sirica, who was convicted that pertinent details had not been unveiled during the trial and proffered leniency in exchange for further information. As it

On June 17,1972, five thieves, who were correlated with the reelection campaign of Richard Nixon, were arrested at the Watergate Hotel in Washington D.C. The five men were caught in the middle of trying to steal classified documents and wire tape phones in the office of the Democratic National Committee. Although, Richard Nixon denied any connection to the incident, it was later revealed that Nixon had been dishonest. Not only was hush-money prepared to be given to the the prowlers, Richard had delayed the FBI investigation of the crime. Nixon had also tried to fire a prosecutor who kept pestering the president for tapes of the conversations that had taken place in the Oval Office. Due to the fact that all of these were, “an abuse of presidential

On June 17, 1972, there was an attempted burglary at the Watergate office complex. A security guard named Frank Wills noticed tape covering a few latches here and there and removed them unconcernedly, only to find them back again a while later. There were five men in the DNC at this point and they were promptly arrested. Unbeknownst to most at the time, there had been another burglary before June 17th, on May 28th, and two phones were wiretapped in the process. The reason there was a second break-in was due to repairs. These were both performed by the White House Plumbers, a group formed in 1971 under Nixon to stop security leaks. They eventually branched out into illegal affairs, like the Watergate burglary.

When the “Watergate Seven” broke into the Democratic National Committee headquarters at the Watergate Office Complex, none of them could have imagined the scandal which would soon erupt. Following the initial break-in on July 17, 1972, a cover up was initiated by the Nixon administration to hide the fact that the burglary was ordered by Nixon's Committee to Re-elect the President (CREEP). After two years of investigations and trials, Nixon's cover up blew up and he was indicated for obstruction of justice. In the end, Nixon chose to resign as president instead of facing impeachment. Although the Nixon administration endeavored to cover up its involvement in the Watergate burglary, political investigators were able to uncover the White House's

On December of 2001, the nation’s seventh largest corporation valued at almost $70 billion dollars filed for bankruptcy. Illegal and fraudulent accounting procedures would led to the demise of the company. Over 20,000 people lost their jobs, and about $2 billion in pensions and retirement funds disappeared. Despite all this, Kenneth Lay, Jeffrey Skilling and Anthony Fastow profited greatly from Enron. These events resulted in the implementation of new legislation on the accuracy of financial reporting for public companies. The fall of Enron became known as the largest corporate bankruptcy in the United States at the time.

In October 2001, Enron announced it was reducing after-tax net income by approximately $500 million & shareholders’ equity by $1.2 billion. It also announced that it was restating net income for the years’ 1997-2001. In November 2001, Enron recognized in a federal filing that it overstated earnings by nearly $600 million since 1997. Within a month, they declared bankruptcy. It was discovered that many financial reporting issues were poorly disclosed or not disclosed at all. There were major

a. Stockholders at first reaped tremendous gains from their investments in Enron stock, because the company’s value rose a lot of quicker than market averages throughout the late Nineteen Nineties. In 2001, because the stock value folded, investors lost $70 billion in value. Each individual and institutional shareholders were hurt. Significantly blasted were Enron workers whose 401(k) retirement plans were heavily endowed in their company’s stock. Even shareholders who failed to own any Enron stock were hurt, as stock costs fell across the board within the wake of the scandal as investors doubted the integrity of the many companies’ monetary reports.

The company Enron was formed in 1985 after two natural gas companies, Houston Natural Gas and InterNorth merged together. Kenneth Lay, former chief executive officer of Houston Natural Gas was named CEO of Enron and a year later, Lay was assigned to the chairman of Enron. A few years later, Enron launched a website to allow customers to buy stock for Enron, making it the largest business site in the world. The growth of Enron was rapid; it was even named seventh largest company on the Fortune 500 list; however things began to fall apart in 2001. (News, 2006). In the third quarter of that same year, Enron posted an enormous loss of over $600 million in four years. This is one of the reasons why one of the top executive resigned even though he had only after six months on the job. Their stock prices fell dramatically. Eventually, Enron filed for bankruptcy protection. This caused many investors to lose money they had invested in the company and employees to lose their jobs and their investments, including their retirement funds. The filing of bankruptcy and the resignation of one of the top executives, also led to an investigation by the U.S. Securities and Exchange Committee, which proved to be one of the biggest scandals in U.S. history. (News, 2006). All former senior executives stood trial for their illegal practices.

In light of the recent scandals that rose around big multinationals such as Enron and WorldCom, it has become evident that reform in the traditional corporate operations and objectives was to be encompassed in the organisations corporate strategies. Indeed throughout the years, companies main objectives were defined primarily as being economic objectives, Multinationals developed with sight of profit maximisations regardless to the other incentives, Friedman considered that to be the foundation for a well-managed company, it was further considered that the financing of any other sort of social corporate activities rather unnecessary. The expenses were regarded as expenditures for the owners and investors; this was a time where shareholders rights were regarded as conflicting with other constituents namely the employees, creditors, customers or the community in general. However this interpretation is seen as rather inadequate due to the nature of the amalgamated relation between both constituents. Stakeholders in modern corporate doctrine are considered as a core apparatus for the well functioning of a business. It is however often argued that the only way for a corporation to achieve better results and maximise its profits is to include other people in the process, individuals or organisations with direct or indirect interest in the well performance of the company, that is the reason why modern regulations and codes include a number of stakeholders other than the

As competition increased and the economy started to plunge in the early 2000s, Enron struggled to maintain their profit margins. Executives determined that in order to keep their debt ratio low, they would need to transfer debt from their balance sheet. “Reducing hard assets while earning increasing paper profits served to increase Enron’s return on assets (ROA) and reduce its debt-to-total-assets ratio, making the company more attractive to credit rating agencies and investors” (Thomas, 2002). Executives developed Structured Financing and Special Purpose Entities (SPE), which they used to transfer the majority of Enron’s debt to the SPEs. Enron also failed to appropriately disclose information regarding the related party transactions in the notes to the financial statements.Andersen performed audit work for Enron and rendered an unqualified opinion of their financial statements while this activity occurred. The seriousness and amount of misstatement has led some to believe that Andersen must have known what was going on inside Enron, but decided to overlook it. Assets and equities were overstated by over $1.2 billion, which can clearly be considered a material amount (Cunningham & Harris, 2006). These are a few of several practices that spiraled out of control in an effort to meet forecasted quarterly earnings. As competition grew against the energy giant and their

The story of Enron begins in 1985, with the merger of two pipeline companies, orchestrated by a man named Kenneth L. Lay (1). In its 15 years of existence, Enron expanded its operations to provide products and services in the areas of electricity, natural gas as well as communications (9). Through its diversification, Enron would become known as a corporate America darling (9) and Fortune Magazine’s most innovative company for 5 years in a row (10). They reported extraordinary profits in a short amount of time. For example, in 1998 Enron shares were valued at a little over $20, while in mid-2000, those same shares were valued at just over $90 (10), the all-time high during the company’s existence (9).