Enron Company : The United States History

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Enron company was created in 1985 out of Texas. The company was in the business of natural-gas pipelines. Eventually they merged with InterNorth and their business shifted towards other natural gas productions. They began to trade natural gas and electricity, which resulted in their biggest growth driver for their company. Enron was not only top in the country, but in the world they were known for their business’s success. In the year of 2000 they hit number seven on the fortune 500 list. At this point, Enron was also the sixth largest energy company in the world. But, the company quickly became the largest bankruptcy in the United States history. Humble beginnings of this company were not so humbling to the auditors and investigators soon after they uncovered their overstated financial statements. This scandal began with CFO, Andrew Fastow understating the company’s liabilities, and overstating incoming revenue which is why this company made it to the Fortune 500. Soon after this accounting scandal began, Jeffrey Skilling resigned as CEO in 2001, and Kenneth Lay became CEO once again (he was previously CEO when the company was founded). Just a few months after this change, Enron released an announcement that they had a third quarter loss of $618 million dollars. After this huge loss, business investigators began to question the company’s practices within the company. And soon after Enron’s third quarter loss, the SEC (Securities and Exchange Commission)
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