Enron paper
In just 15 years, Enron grew from nowhere to be America's seventh largest company, employing 21,000 staff in more than 40 countries. But the firm's success turned out to have involved an elaborate scam. Enron had lied about profits and stands accused of a range of shady dealings, including concealing debts so they didn't show up in the company's accounts. A chorus of outraged investors, employees, pension holders and politicians are demanding to know why Enron's failings were not spotted earlier. Enron is a new-economy company, which was a market maker for energy trading. It ranked as the most innovative company in America four years in a row, as judged by envious corporate peers in the annual Fortune magazine poll. When Enron got started, natural gas and electricity were produced, transmitted and sold by state-regulated monopolies. They were often inefficient. Enron used Wall Street magic to transform energy supplies into financial instruments that could be traded online like stocks and bonds. These contracts guaranteed customers a steady supply at a predictable price. By bringing the laws of supply and demand into the energy system it provided a new way of doing business for energy customers.
Neither did the Canadian bank, which now holds a lot of worthless Enron i. "The question many wonder is how such a reputable firm for the past ninety years like Andersen could come to such ethical lows as to not only help enron cover up their dummy companies which they received and made loans but to actually shred up documents. We know how politics, business, and greed all go hand in hand unfortunately and how corrupt corporate America is. gured if it could trade energy, it could trade anything, anywhere, in the new virtual marketplace. Here's one of the more audacious examples, pieced together by The Wall Street Journal: Enron invested a bunch of money in a joint venture with Blockbuster to rent out movies online. The Blockbuster deal never made a penny, but Enron counted the Canadian loan as a nice, fat profit. This same logic has occurred to many and has led to the firm's demise, many leaving to work for the other big four and some retiring early. After the Securities and Exchange Commission launched its investigation, Andersen executives tried to blame their Houston office, led by former partner David Duncan. He states how "accounting professors teach students to think of their profession as a sub-discipline of finance. By this definition Arthur Andersen clearly failed. The deal flopped eight months later. Others suggest it is because companies have bought influence in Washington that such an episode could have happened to the extent that it did, and that stricter controls from congress are necessary. The Times's Kurt Eichenwald uncovered some of Enrons failures and how they created hiding places for it. Pava in a recent article in the Yeshiva University Commentator suggested that the problem stems from how the accounting professors think of their profession and how it fits into the larger picture of business. By the fact that there is substantial evidence that shredding of legal documents was done, I don't know how anyone could trust the firm of Arthur Andersen again.
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Acceptance Essays
