Enron the Smartest Guy in the Room

  • Published on
    02-Feb-2016

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Summary about the situation of Enron, how a small company became a huge one in 5 years what do they do in order to achieve that?

Transcript

Enron the Smartest guys in the Room

This films talks about Enron. How a gas Company that originally was just a small Company in Texas that was found in 1985 became to be one of the most important companies in the US in just 5 years. But all the successful of this Company was based on lies. And that whats the film talks about, how Kenneth Ley took some decision that no matter if they were legal or not, the only thing he cares about is the money.

In the movie said that the president Lay for many years built a close relationship with political leaders, especially in Texas with the president of US, Bush, father and son, actively participating in financing their political campaigns, in fact some analysts understand their relationship as the most important in the history between President of the United States and a private corporation. It is said that Bush gave billions of dollars in subsidies to Enron during his administration.

Lay in 1987 had shown that his priority was the money above ethics. A scandals was emerged with two employees of the company. These employees was diverted money to their particular accounts. What Lay did was nothing, he didnt punish the employees, and he argued that the sector on which those people was working generated a lot of profits.

In 1992 Lay brought to the Company Jeff Skilling, who seems to have good ideas. Skilling's proposal was to migrate from traditional gas trading scheme and bring Enron to become a kind of market for gas, becoming its largest buyer and seller in the United States. However most of its profits were false and hid millions in debt. The directors of the company surely knew in detail the accounting, and consciously decided to take risks of lying. His knowledge of the financial situation of the company is evident most of the directors before announcing that the company was in bankruptcy they sale of all the shares with higher prices.

Talking about auditors, banks, and suppliers may not have the same level of detail of the financial information, but surely for their experience should understand that something in the company wasnt clear at all.

And the most affected people was the workers that even know about the financial situation. The bankruptcy of Enron left 20,000 people without jobs, and 2,000 million dollars in lost pension and retirement unpaid.

In conclusion after saw this documental we know that is not possible build a company based on lies and ambitions. There always rules and laws that we have to fallow.And something very curious about the movie is that they make relation about the case of Enron and the movie Titanic were the captain say with the people until the end, and in Enron the captain (Kenneth Lay) was the first one to run away with millions of dollars.

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