Enron Research Paper

On December 2, 2001, Enron Corporation, one of the largest energy companies in the United States, shocked the United States and applied for bankruptcy. A criminal investigation took place immediately after the crash, it became clear that the company lied about their interests and hid it, and it was not displayed in the bank account. Many key figures, such as Shelon Watkins, are involved in the downfall of Enron. Sherron Watkins was born on August 28, 1959 in Houston, Texas. She is the daughter of two middle school teachers (Pellegrini, 2002, paragraph.

Enron is a US-based energy commodity company. For six consecutive years, Fortune magazine cited Enron as the most innovative company in the United States. Enron was founded in 1985. He is engaged in many businesses such as oil, gas, electricity, bandwidth, paper, video on demand. Enron claims to have earned $ 101 billion in 2000, but on 2 December 2001 it surprised the bankruptcy. I would like to say that the main reason for the collapse of Enron is the lack of professional ethics and moral values. Enron uses market-based accounting to record the potential profit of the project as soon as the contract is concluded, regardless of the actual profit generated by the transaction. In other words, companies can record virtual profits in their books. Even if it does not make a profit, this makes Enron a useful company. People never know whether Enron is really profitable or pretending.

Enron was the biggest bankruptcy incident in the history of the United States, thousands of employees were unemployed and retired. Through various accounting methods related to partnerships, Enron exaggerated their interests and reduced debt. They misunderstood employees, investors, and the public about the company's financial situation. When these ready-made partnerships were released, the bottom ended and Enron's stock price plummeted from nearly $ 80 per share to less than $ 1 per share. Enron executives recovered millions of dollars through these partnerships and sold their shares before retirement. Meanwhile, Enron's employees lost most of the pension and investors lost millions of dollars. Info@alternet.org

Immediately after bankruptcy in November 2004, Enron's new board met with 11 financial institutions and helped Lay, Fastow, Skilling and others hide Enron's true financial situation. This case is known as "mega lawsuit". Defendants were Royal Bank of Scotland, Deutsche Bank and Citigroup. As of 2008, Enron reconciled with all agencies and came to a close with Citigroup. Thanks to the massive litigation, Enron received approximately $ 7.2 billion of funds that can be allocated to creditors. As of December 2009, payment of several claims and payments is still being distributed