[Mimi Swartz] Æ Power Failure: The Inside Story of the Collapse of Enron [counselling PDF] Ebook Epub Download ¹ A good book with a lot of details about the Enron debacle At first you think that just a few people are the bad guys, cooking the books and keeping the debt off the balance sheet But as you read you realize how greedy all the people there were, including Sharon Watkins, the supposed whistle blower who really wasn t, though she did eventually go the the CEO with some of her questions and suggestionsa real whistle blower would have gone to the SEC or other outside agency As you read along you find many people who are dissatisfied with the way the company is run, and some questioning the accounting being done, and conflicts of interests But they stay there to collect their high salaries and bonuses Even Sharon said she wanted to leave but she had a big house with big bills and wanted to have another baby before looking for another j So a couple weeks back an online friend asked me just what the fraud at Enron was As I was unsatisfied with the answer I gaveor less concealing liabilities through a web of complex partnerships AKA special purpose entities or SPEs and, since my library had this audiobook, I figured might as well listen to this.
Book begins by mentioning Houston s origins, including how the original promoters of the territory insisted the local waterway was navigable Barely Along with the cast of characters beginning with Kenneth Lay one early performance review warned Might be too ambitious as the history of the companies that became Enron began Formed by the merger of the two biggest natural gas pipeline players in an effort to create the only natural gas Supermajor Name Enron also seemed to be because the en was for energy and on to try to imitate th They Re Still Trying To Hide The Weenie, Thought Sherron Watkins As She read A Newspaper Clipping About Enron Two Weeks Before Christmas,It Quoted CFO Jeff McMahon Addressing The Company S Creditors And Cautioning Them Against A Rash Judgment Don T Assume That There Is A Smoking Gun Sherron Knew Enron Well Enough To Know That The Company Was In Extreme Spin Mode Power Failure Is The Electrifying Behind The Scenes Story Of The Collapse Of Enron, The High Flying Gas And Energy Company Touted As The Poster Child Of The New Economy That, In Its Hubris, Had Aspired To Be The World S Leading Company, And Had Briefly Been The Seventh Largest Corporation In AmericaWritten By Prizewinning Journalist Mimi Swartz, And Substantially Based On The Never Before Published Revelations Of Former Enron Vice President Sherron Watkins, As Well As Hundreds Of Other Interviews, Power Failure Shows The Human Face Beyond The Greed, Arrogance, And Raw Ambition That Fueled The Company S Meteoric Rise In The Late S At The Dawn Of The New Century, Ken Lay S And Jeff Skilling S Faces Graced The Covers Of Business Magazines, And Enron S Money Oiled The Political Machinery Behind George W Bush S Election Campaign But As Wall Street Analysts Sang Enron S Praises, And Its Stock Spiraled Dizzyingly Into The Stratosphere, The Company S Leaders Were Madly Scrambling To Manufacture Illusory Profits, Hide Its Ballooning Debt, And Bully Wall Street Into Buying Its Fictional Accounting And Off Balance Sheet Investment Vehicles The Story Of Enron S Fall Is A Morality Tale Writ Large, Performed On A Stage With An Unforgettable Array Of Props And Side Plots, From Parking Lots Overflowing With Boxsters And BMWs To Hot House Office Affairs And Executive TantrumsAmong The Cast Of Characters Mimi Swartz And Sherron Watkins Observe With Shrewd Texas Eyes And An Insider S Perspective Are CEO Ken Lay, Enron S Outside Face, Who Was Interested In Playing Diplomat And Paving The Road To A Political Career Than In Managing Enron S High Testosterone, Anything Goes Culture Jeff Skilling, The Mastermind Behind Enron S Mercenary Trading Culture, Who Transformed Himself From A Nerdy Executive Into The Personification Of Millennial Cool Rebecca Mark, The Savvy And Seductive Head Of Enron S International Division, Who Was Skilling S Sole Rival To Take Over The Company And Andy Fastow, Whose Childish Pranks Early In His Career Gave Way To Something Far Destructive Desperate To Be A Player In Enron S Deal Making, Trader Oriented Culture, Fastow Transformed Enron S Finance Department Into A Profit Center, Creating A Honeycomb Of Financial Entities To Bolster Enron S Profits, While Diverting Tens Of Millions Of Dollars Into His Own PocketsAn Unprecedented Chronicle Of Enron S Shocking Collapse, Power Failure Should Take Its Place Alongside The Classics Of Previous Decades Barbarians At The Gate And Liar S Poker As One Of The Cautionary Tales Of Our Times From The Hardcover Edition Given that Power Failure was written with Sherron Watkins a player of sorts in the situation , I expected it to have some unique insights but to be very agenda driven While Watkins comes out of it looking good, the book s strength actually turns out to be its relatively straight recounting of the events One can t pretend to be unbiased about the figures involved in the Enron scandal, but Power Failure does not aggressively push any particular theory about why things went wrong compared to, for example, Kurt Eichenwald s Conspiracy of Fools Since it manages to that without being completely boring, it s a worthwhile book to have in the mix of books about Enron.
As the third Enron book I have read, it added little to what I already knew about the company But if this is your first book on Enron, then it will reveal everything about the Houston based company and its culture In any case, the book was very pleasurable It also stayed away from being too technical.
If you lived through the late 1990 s and early 2000 s you may be aware of the basic, headline grabbing story of Enron A small energy company who s core business was in pipelines and natural gas grew over the late 80 s and 90 s into the world s largest energy company who invented the idea of the energy trading market Through questionable accounting, poor criminal decisions, and a culture that pushed everybody to make as much money as they could, however they could, the company eventually imploded, crashing so far that the company never recovered Today Enron, if people know it at all, or even hear the name, see the company s story as a cautionary tale at best , or as a laughing stock, suitable only as the bu Good book Well written.
Wow It is said that money and power are the root of all evil This book proves that assertion It is unbelievable to me unfathomable actually that human beings are as greedy and narcissistic as described in this book Even the heroine, the whistleblower, was susceptible to these traits and as such, should be given no sympathy Ken Lay, CEO of Enron was found guilty of 10 counts of securities fraud, circumvented incarceration by dying three months before the judge was to impose sentencing Jeff Skilling, President was also found guilty sentenced to 24 years in jail Apparently, part of his conviction was overturned by the U.
S Supreme Court and remanded back to the lower courts for retrial Finally, Andy Fastow CFO and responsible for most of the off balance sheet financial shenanigans that brought about Enron s downfall is currently serving a six year s Update My wife and I just finished watching Enron The Smartest Guys in the Room, an excellent documentary made in 2005 I recommend it highly, especially as many of the seeds of the current economic crisis were apparent in the machinations of the Enron boys The parallels are uncanny.
Ken Lay was the product of a very religious background in a small Midwestern town During work on his PhD in economics, he became enad of the world of stocks He parlayed InterNorth, a small energy company into Enron He was a rich man, having made 4 million in stock value increases from the merger of Houston Gas into InterNorth, later renamed Enron He was also the highest paid CEO in the United States The company s strengths were also its weakness the constant risk taking the high debt load to ward off potential takeovers impassioned embrace of deregulation constant reorganization and instant adoption