Kenneth Lay, The Founder Of Enron

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Kenneth lay, the founder of Enron, did not start his life as a deceiving criminal. He was born in Missouri in 1942. He went to school at the university of Missouri where he got a master’s degree in economics. After serving briefly in the us navy he got into the Gas business starting a career working for Exxon predecessor Humble Oil & Refining. He quickly moved up the ladder and found himself as president and CEO of Houston Natural Gas Co in 1981. Four years later his company merged with InterNorth, a pipeline company from Nebraska, and Enron was born. Kenneth Lay was made CEO of Enron not long after the merger. (1)
Enron went into debt during the merger. Enron right from the start was forced to come up with a new way to make money and pay off their debts. Enron shortly after lost its exclusive pipeline rights and Kenneth Lay had a huge problem and need a solution, he enlisted the help of Jeremey Skilling from Mckinsey & Co to help come up with a solution. His solution was to build a ‘Gas Bank’. This was a concept that Enron would buy gas from network suppliers then sell it directly to consumers under a contract which would guarantee supply and price. This revolutionary idea lead to Skilling’s Employment at Enron in 1990 in a new division called Enron Finance Corp. Enron Finance Corp. had the responsibility of gaining access to suppliers and getting clients to sign contracts. They began to dominate the market and with such market power they were able predict future prices

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