Enron Near Collapse After Dynegy Pulls Out

Reuters ^ | 28 Nov 01 | C. Bryson Hull

[Jalapeno]

Jeff Skilling (CEO) quit after 6 months on the job, though he was groomed for the position for 10 years, and probably played a big role in all the funny money loan deals they made.

The week before he quit in August, thee was an explosion near London at the Teeside Power plant, owned by Enron. Tow employees were killed, both with families of small kids. When he resigned the following week, he had the audacity to sight their deaths as his 'realization that life is to pprecious to work so hard'.

It was obvious that the real vision was "life is to precious to pend it in jail." He defintely was a sleazy, low character type.

[Jalapeno]

forgive the spellings of the last post...been a long day.

[tubebender]

Isn't Enron the co that Grey Davis bashed over their sales to Calif. Do they have anything to do with El Paso Gas. I beleive they control the Nat. gas flowing to Calif?

[is_is]

Thanks for the company tour.....I thought i remembered something about bandwidth and how they were in deep.....lot's of investment and little revenue.

[FreePaul]

I've been reading scattered stories about the hundreds of millions of dollars worth of stock the top executives of Enron have been selling off in the last few weeks. I haven't seen an article that lists all of them together. I'd like to see that.

[Jalapeno]

Yeah, Enron was one of the companiies envolved. El Paso, like Dynegy is a competitor. Much smaller than what Enron was.

It is unfortunate about the California thing. Enron was on the right side of the argument for that. I am sure Davis and those other welfare whackos out there will try to do a 'see I told you so' somehow.

[Fury]

We sold about 80% of our Enron stock last year in early November and the rest back in June of this year. It was a great stock and did very well.

Sounds like their could be some criminal investigations as a result of some of the accounting information, etc. being cooked.

[buckalfa]

You might also add that this type of behavor gives the GOP a black eye with the working class voters. Who is going to vote for a party that supports an economic stimulus package that is mostly tax breaks for corporations. The voters sincerely doubt that the tax breaks will be plowed back into investment, but suspect the dollars will go for personal gain of top management at the expense of the rank and file employees. It is being percieved that GOP equals greed.

[Dianna]

May I ask you a question?

The company my father works for (30-odd years, 3 years from retirement) is filing chapter 11. No higher up's seem concerned, so we figure it's likely to be business as usual. Does this just give protection from creditors?

[RightWhale]

No higher up's seem concerned, so we figure it's likely to be business as usual

There are companies that have been running under Chapter 11 for years and years. The idea is to eventually get back to business health. Doesn't always happen, sometimes they sell the assets and fold their tent.

[Dianna]

Thanks for responding RW. I hope they hang in there for a few more years :)

[Chewbacca]

Funds hit hard - Enron Exposure

Alliance Capital: 42.9 million shares

Janus Capital: 41.4 million shares

Putnam: 23.1 million shares

Barclays Global: 23.1 million shares

Fidelity: 20.8 million shares

Smith Barney: 19.4 million shares

State Street: 16.1 million shares

Aim: 14.0 million shares

Vanguard: 11.4 million shares

Morgan Stanley: 10.1million shares

Not to mention the rumor that JP Morgan and Citigroup hold about 800 Million shares of ENE, each. With 300/400 Million of those unsecured. Ugly for sure. apparently this will cost in the neighborhood of .05 to .10 for their earnings.

[lewislynn]

What went wrong? From my perspective, Enron's top most management were involved in a four-year scandelous program of misrepresentation, deciet, dishonesty, and criminal behavior while espousing the "Enron Values" of Integrity, Respect, Communication, and Excellence, and pontificating and diaplaying huge arrogance and smugness to everyone in general.

Uh huh, and there are still morons who don't believe Enron manipulated the market and gouged California citizens during the phony deregulation/energy fiasco last year.

[Jaded]

It's not like California didn't make their own contributions to the problem. If it makes you feel any better, there is already a class action suit.

[lewislynn]

Your credibility is waning now.

It is unfortunate about the California thing. Enron was on the right side of the argument for that...Right side of the argument for what?...By whose standards...Enrons?

Oh yeah, everything else was dirty dealing ,all the upper managment was crooked for 4 yrs, including the low life CEO that resigned after one month was crooked, but that one deal screwing Californiains...well that was on the up and up.

BTW the "welfare whackos" (as you call us) of California happens to be about the 6th largest economy in THE WORLD...You can't tell me your crooked bosses (your words) at Enron weren't trying their underhanded tricks to get a piece of that huge pie too.

[Southack]

There are some interesting comments on a similar thread, here:

Enron's 10-Q Audit Cooked By Andersen

[gogov]

If those guys are walking away from their mismanaged and/or fraudulently-managed company with multi-million-dollar net worths, they need to be individually sued to within an inch of their lives.

If you can pierce the corporate veil. It all depends on how they conducted themselves. They may very well be able to keep every million - provided they got such sums - if it was paid out properly.

[Uncle Bill]

"Enron's top most management were involved in a four-year scandelous program of misrepresentation, deciet, dishonesty, and criminal behavior while espousing the "Enron Values" of Integrity, Respect, Communication, and Excellence, and pontificating and diaplaying huge arrogance and smugness to everyone in general."

They'll be able to get a federal government job. Maybe the FBI or something.

[Governor StrangeReno]

Do a Google search 'Bill Clinton/Enron'-they were certainly on his side 140k soft cash etc etc

[Hostage]

Your first question is very good but your second question I think answers itself. There wasn't fraud or mismanagement on a huge scale. I don't think the partnerships that were moved off the books were on a huge scale. Compared to the Company's Trading volume and capacity, the accounting quirks were trivial. Something else is going on here.

Note that the SEC has implied that Enron is playing ball and has taken steps to show it's getting its act together. Second, note the following quote:

The U.S. Treasury Department said it was monitoring Enron, but said it has yet to see "anything extraordinary."

The above quote confirms why your first question and observation is so good. I've been following this story fairly closely for a few weeks now. It really doesn't add up other than a temporary dive in some IT side investing. But just about everyone is shell shocked over IT spinouts, it's not isolated to Enron. Enron can still make a lot of money.

You asked the right question.

I personally suspect some payback politics.