Episode
How Enron Fooled the World
1:08:18
Published: Tue Jan 10 2023
Description
Until the 2007, the largest single corporate bankruptcy was Enron, a $67 billion energy trading company. Its decline was breathtaking, and while it’s a fascinating story of corporate malfeasance and greed, it’s also about the lives of ruined workers.See omnystudio.com/listener for privacy information.
Chapters
The podcast hosts discuss the rise and fall of Enron and its impact as one of the greatest corporate swindles in American history.
00:00 - 02:44 (02:44)
Summary
The podcast hosts discuss the rise and fall of Enron and its impact as one of the greatest corporate swindles in American history. Although a well-known case of corporate malpractice, many details are still unknown to the general public.
EpisodeHow Enron Fooled the World
PodcastStuff You Should Know
This episode talks about Enron's decision to create a gas bank and its inevitable downfall due to deception and greed.
02:44 - 15:21 (12:36)
Summary
This episode talks about Enron's decision to create a gas bank and its inevitable downfall due to deception and greed.
EpisodeHow Enron Fooled the World
PodcastStuff You Should Know
The deregulation of the energy sector began with the Federal Energy Regulatory Commission allowing companies to buy gas and sell it wherever in the country, opening up a huge market, followed by the reversal of the Public Utilities Holding Company Act which regulated local electric utilities.
15:21 - 20:37 (05:16)
Summary
The deregulation of the energy sector began with the Federal Energy Regulatory Commission allowing companies to buy gas and sell it wherever in the country, opening up a huge market, followed by the reversal of the Public Utilities Holding Company Act which regulated local electric utilities.
EpisodeHow Enron Fooled the World
PodcastStuff You Should Know
Enron energy traders figured out how to move energy out of the state and bring it back at inflated prices, all while making billions and replacing the executive of the state to their advantage.
20:37 - 26:28 (05:50)
Summary
Enron energy traders figured out how to move energy out of the state and bring it back at inflated prices, all while making billions and replacing the executive of the state to their advantage.
EpisodeHow Enron Fooled the World
PodcastStuff You Should Know
Enron manipulated their stock price and used special purpose entities to sell off their debts.
26:27 - 35:34 (09:06)
Summary
Enron manipulated their stock price and used special purpose entities to sell off their debts. They also used mark-to-market accounting practices to rate their financial health based on future earnings rather than their current worth, which ultimately led to their downfall.
EpisodeHow Enron Fooled the World
PodcastStuff You Should Know
The Enron scandal was a result of hubris and greed, as its executives became blinded by the billions of dollars rolling in, ignoring the fact that it was hurting others.
35:34 - 37:03 (01:28)
Summary
The Enron scandal was a result of hubris and greed, as its executives became blinded by the billions of dollars rolling in, ignoring the fact that it was hurting others. Despite having brilliant people, they failed to understand that a house of cards will eventually fall, leading to the downfall of the company.