Enron Corporation: An Electivity and Natural Gas Company
1621 Words7 Pages
Enron Corporation was formed in 1985 when Houston Natural Gas merged with InterNorth to create an electricity and natural gas company that would eventually become Enron. After Houston Natural Gas merged with InterNorth, the former chairman of Houston Natural Gas, Kenneth Lay, was appointed as CEO of Enron. The Chief Executive Officer of Enron, Kenneth Lay’s ultimate goal was to make Enron “the world’s greatest company,” but unfortunately he failed to achieve his goal. During the 1990s, Enron was considered “America’s most innovative company,” and by December 2, 2001 Enron was the 7th largest U.S. Company in 2001 and became the largest corporate bankruptcy in U.S. history. Now it is considered to be one of the largest fraud scandals in the history of the United States.
After Enron collapsed, shareholders lost about 80 billion dollars and many people lost their jobs and lost their life savings that they had invested in Enron’s shares. Soon after Enron collapsed, Arthur Andersen, a well respected accounting firm that was also one of the big five accounting firms at the time, was found guilty of obstruction of justice after David Duncan, the lead partner of Enron audit engagement, agreed to testify against his former employer, Arthur Andersen.
After Kenneth Lay was appointed the chair and the CEO of Enron, he quickly adapted an aggressive innovative growth strategy. Kenneth Lay also had personal ties with George W. Bush and that allowed him to insist on deregulation of the