enron

mark to market accounting

Book future profits before they occurred

working environment of Enron under Skilling’s management.*

Cut-throat. Believed in Darwinism. PRC Performance Rating Committee, employees rated employees.

How much money did Lu Pi leave Enron with?*

$250 million

What was the broadband business supposed to provide?*

Movies on demand

What is “structured finance”?*

Covering up a company’s debts and making the company look like it was making large profit

How did traders make money off California power?

Created artificial blackouts by shutting down power pants; gaining from increased prices of energy.

How much money did the energy crisis cost the state of California?

$30 billion

What are some things Sharon Watkins’ memo said to Ken Lay?

Warned about incorrectness of accounting; fraudulent activities.

How much money did Andy Fastow make with the LJM partnership?

$45 Million

What happened on December 4, 2001?*

Enron filed bankruptcy.

After his trial, what was Andy Fastow’s sentence?

Forfeit $23 million in assets; 10 years prison

How many people lost their jobs when Arthur Anderson fell?*

29,000

Did Ken Lay ever end up going to jail?  Why or Why not?*

No, died. (As of 4/2007 Lay’s estate was being sued. Lay’s wife said she should get estate worth $13 million. Over the course of criminal activity, Lay received $99 million.)