We are trying to analyze the cause for the downfall of Enron. It is
probably the biggest scandal of the connection between American politics
and business. The dishonesty of the top executives of Enron is shown with
examples, as also the connection between Enron and the top politicians of
the present including those at the top. All the connections involve
finance, and the giving of money. This money is deliberately kept outside
taxation, and is not reported in full. These practices are known within the
company and not reported or countered. What is the solution'
What happened to Enron' Enron was the largest power and utilities
broker at that time and it went bankrupt, and is probably the largest
scandal in the history of American business and politics.
What went wrong at Enron' - Almost everything. It rose from a small
Texas gas company to become the seventh largest American Corporation,
through the misuse of political influence and political decisions.
Originally it made a profit in the trading of energy, by undertaking to
deliver gas and oil to the utilities or other businesses at a fixed price
on a fixed day. Then the energy market was deregulated, including the
market for electrical power. This permitted Enron to move into brokering
and trading of electricity and other energy commodities. This also required
Enron to spend a lot of time and money in lobbying the Congress and
legislatures in the states, as earlier these markets were reserved only for
the public companies. (The Enron Story)
The business of Enron grew and as a broker it started making money
from the difference in its purchase and sale price energy and commodities.
The prices were never declared. Competition forced them to increase their
business and it started insuring customers for changes against...