The Sudden Collapse of Enron - The Full Story | Greed, Lies, and Idiocy | History in the Dark
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- Опубликовано: 11 июл 2024
- Enron was an energy company specializing in natural gas. Overtime, they branched out into other avenues and became one of the most successful companies in the world. However, not all was as it seemed. Secretly, Enron had been hiding financial losses using sketchy accounting and illegal practices to inflate their own stock price. Eventually, this all came crashing down and became the largest bankruptcy in American history at the time.
0:00 - Intro
1:25 - Formation
7:46 - Too Good to be True
10:30 - Revenue Recognition
15:22 - Mark-to-market
18:24 - Mismanagement
21:44 - Special purpose entities
25:53 - Too Many Bad Deals
30:03 - Loopholes
36:16 - The Cracks Start to Show
42:56 - The Descent Begins
47:15 - The Collapse
53:35 - The Fallout
"Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. It was founded by Kenneth Lay in 1985 as a merger between Lay's Houston Natural Gas and InterNorth, both relatively small regional companies. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,600 staff and was a major electricity, natural gas, communications, and pulp and paper company, with claimed revenues of nearly $101 billion during 2000. Fortune named Enron "America's Most Innovative Company" for six consecutive years."
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en.wikipedia.org/wiki/Enron
en.wikipedia.org/wiki/Enron_s...
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#history #truestory #documentary
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Something went EnWrong
Barbara Punkelmann moment
@@Unown127YANG!
LIME THAT MAN
Take my like and get outta here 😂
😂
What bothers me about all of these scandals is that the agencies that are supposed to regulate them miss the entire scheme despite being told multiple times. There’s usually one fall guy and people forget.
Not like the public is helpful with that, really. People just want someone they can throw tomatoes at in the town stockade for a few days and quickly lose interest afterwards
I’ve a major in corporate finance and a trading experience of more than a decade. There are dozens of enrons even today in the market. Once shit hits the fan, u will know some of them.
"Enron, the Smartest Guys in the Room" was the first movie that made me so angry I actually threw something at the TV. Everyone involved with Enron truly unbelievably all deserve to burn in Hell.
You're letting some of them off easy. 31 year PGE who retired in 1995 two year's before Enron bought his former company, a company that started in 1888, annual retirement amont went from $28,800 to $1,640 after it was found in Enron Bankruptcy that Enron had taken the cash out of the company's fully funded retirement trust accounts they received after merging and replaced it with Enron stock 11 months before bankruptcy. That deserves more than eternal damnation for an even swap.
The crooked E was a wonderful dramatization
And one of the disgraced Enron executives had a kid….who was Elizabeth Holmes, and was CEO of the Theranos fraud company, and currently sitting in prison.
It's in the genes!!
Her father was a Vice President of Enron, according to Wikipedia.
Christian Rasmus Holmes IV@@HVACSoldier
He was a nobody. Middle management VP
She's a nepo baby of fraud :)
I used to pass their building on 1600 Smith St everyday... now Chevron occupies their buildings... those will always be the enron towers in my Houstonian eyes
I started off with an interest in theranos (i work for a science company and could see how arrogance, a shitty concept and failing testing could create a slippery slope!) And that drew me to the Enron story.
What blew my mind about Enron was that period when they became involved in supplying maintenance services...it reminded me so much of the company i work for now- "well, we're REALLY shit at it, and we are really unreliable, and we arent interested in it, and theres no margin...BUT IF WE DO IT IT WILL BE AN AUTOMATIC SUCCESS BECAUSE WE ARE SO SMART"
with absolutely no eye on delivery. Just announcements.
Anyway, that got me into the story of Deutsch bank, the 2008 collapse, Wirecard, the big short, the RJR Norbisco LBO....etc etc
All my reading now is corporate fraud and investment banking 😂
Fun fact: Enron’s accounting was done by the same firm that handled the numbers for Penn Central.
Wait really?
AND Worldcom.
We learned about this in my accounting classes in high school, so this is a nice refresher/ nostalgia trip.
Uh, I was supposed to go BACK to MCI from TBS, when TBS got rid of their Mainframe. I was a SAS programmer at the time. MCI used a lot of SAS back then. TBS talked me into staying, to move into the client-server world. 6 months later Enron (who bought MCI) collapsed... Probably the best career move I didn't make!
What happened to the guy who read the article, figured out what was happening, and shorted Enron’s stock?
He’s still a very successful short-seller.
Jim Chanos. He’s had a very successful career though he lost big in recent years shorting Tesla
12:44 A better example might be buying a brand-new car. You likely won't immediately take ownership of the car, especially if you have selected some optional extras. But you know you will be receiving the car at a later date. The car is thus an accrued asset.
One of my stupid buys. I bought 1000 shares at $2.10 thinking surely they owned infrastructure or rights someone would buy that would keep them out if Bankruptcy. Plus I also thought employees could borrow the money to stave off Bankruptcy to save their retirement accounts. But boy was I wrong, the company had already looted the company paid pension plan including the fully-funded retirement company paid trust accounts they got from PGE when they bought them in 1997. Although not black&white ledger provable they basically repaid 40% of acquisition costs with the retirement funds of the future retirees they inherited. 11 months before the collapse they issued Enron stock to replace the actual cash that was in those trust accounts. So, PGE employees already retired got zeroed out along with all the current vested employees. That was BRUTAL. Those ENRON crooks were some dirty dirty ba$turds.
They were very friendly with the Republicans too. Another bunch of crooks.
Part of Enron did actually continue on by getting spun off in bankruptcy and is still operating today (their actual oil and gas production arm), which is now EOG resources. EOG of course stands for Enron Oil and Gas, however, unsurprisingly, for legal and image reasons, EOG doesnt actually stand for anything as an abbreviation. Currently valued at north of 70 billion, one of the largest shale drillers in NA.
Nothing was spun off from ENRON after they filed Bankruptcy only assets liquidated by the Court. ENRON shareholders never got a penny from stock ownership but owners of record did receive 2 seperate payments totaling 0.0635 per share from the 7.2 Billion dollars in class action fraud settlements.
At 2:35, the reason that they decided against using the name “Enteron” was because enteron is the name of the digestive tract. Not exactly the sexy, powerful-sounding name that they were looking for. (Think waste products)
Excellent video! (Long Format works for you!) This is a story I knew of at the time... but being 15 or so had other things to worry about, I never really bothered to take a look back. So now with your help I have, Thanks Darkness, great explanation and video!
Watch "Enron: The Smartest Guys in the Room".
this is a REALLY GOOD VIDEO u were really informative and i feel like i learned loads. super engaging!!! love love love
In Italy in management courses is often paired as a case study with dairy giant Parmalat, which fun enough went bust in more or less the same years (early 2000s)
Or as Barbara Dunkleman, English VA for Yang "RWBY" put it: "Something went En-wrong."
Found your channel and had to subscribe.Great content and I look forward to seeing more 😊
I can't help but wonder what John Ray would think of this video. I personally am very impressed.
So, it's a smaller collapse, and it's in the UK.... But it's a doozy, and an excellent example of when your boss is dodgy, you're screwed. To be totally fair, by the end of it, you might even feel a little sorry for said boss, but only a little sorry. I give you the insurance company "Fire Auto and Marine" and the slow madness of Emil Savundra.
Great video Darkness. I remember hearing about Enron folding all those years ago, but I didn't realize the massive scope of it all.
Wow you did a great job in explaining all that went wrong on this disastrous company!!
The Whammy- "I'd better file these important financial documents!"
Brilliant video man
Also for those who are a little more curious about this a channel called Company Man made a video about this a while which is also very good
The trading laws are boring, but the psychology of Enron's corporate culture is interesting.
Finally this video has came out, after it was set to come out after pen central, and boi this video is awesome, I love it!
You need more long ones like this
The reason they didn’t like name “Enteron” is that it is another name for the gut.
Ever thought of doing a dive into John Blunt and the south sea fiasco? Makes Enron look like amateur hour XD
Great vid.
I’ve never seen you make a video this long before.
Guess they didn’t have the money to keep the energy on
Just realize that you are doing a HOUR on Enron! XD
Get it down to twenty minutes, please.
Don't piss off the money guys. SBF found this out.
God who the he'll approved that revenue realization thing. That just screams red flags for exploitation.
In a nutshell, okay growth just wasn't enough for the CEOs. So they got sneaky and reported wealth that they simply didn't actually have. When that started to unravel, they went down a convoluted road of deceit while never addressing the actual problem. By the time it was clear what that problem was to those outside upper management, it was far too late.
Reaches into my Doordashed bag of chips “even I am better at finance than Enron was”
They should of named it, EndRun.
57:03 Me personally, no, no he didn't get away with it. His punishment came at the right time, and it is eternal.
Always wanted to know what the was about as I’d been hearing about it for years. Also you kinda sound like an American version of Yamiks.
Ah, Texas justice. Lookin' at you Paxton
wunderbar gelesen, vielen dank!!!
love the sessions:vi bgm
0:06 Synonymous not anonymous.
This is the longest video that Darkness has ever made
Enron…. Weird name for a steam locomotive explosion (certainly felt like one when it fell anyway)
Darkness the curse you should bring back Alfred E Perlman back for shorts
# Bring back Alfred E Perlman
# Bring Back I Want That Steam Engine
# I Want That Steam Engine
Good job of sorting and presenting this tangled web of fraud and failure.
The thing is they weren’t hiding anything they were doing from any of the lawyers, accountants, banks, Board of Directors or any other entities overseeing them.
Look up Lou Pai. Hes an Enron executive that got away and only paid a small fine to the SEC. Small relative to the mountains of cash he ran off with.
listen to the audiobook Conspiracy of Fools by Kurt Eichenwald, it's like a John Grisham novel
With Fastow's finances I would've expected him to have a far better-looking wife.
THE ENRON SPELL BINDERS PLAYED FAST AND LOOSE WITH ""ACCOUNTING TRICKS
Ken lay didn’t kill himself
It always amazed me that this scandal didn't take down the Bush administration. He was deeply conected to these con men, even riding around in their jet during the 2000 campaign. Phil Gram resigned as his wife was part of the management team.
'The Three Crooks'. Plain & simple
I love it...30 day warrenty...you know Buck Knives offer a lifetime warranty....Sounds like you not to confident in your product 🤣🤣🤣🤣🤣
FTX. Ask Why.
And wow, this is the first video you sweared in
Wait, I did? When?
@@HistoryintheDarkProbably your mispronunciation of “partnerships” as “partnershits” at 24:41
he’s singing 🧍🏼♀️ bro we just met
Ernst and Young not Ernest and Young
This is pennies compared to today's Democrats.
Apples and oranges, though... the Democrats aren't an energy company... these two things don't compare...
Lol. Republicans caused all of this but yeah, affordable college, affordable healthcare and living wages that the Democrats push are way more evil than this. You do you kiddo.
Ngl I think you should talk about 9/11
Please stop putting so many adds. It’s annoying
Pretty good aside that cringe ass humor
STICK THIS VIDEO WHERE THE SUN DON'T SHINE,,,,,,,,,,,,,,,,,,,,,,,GET IT ?????????????
Sorry, So many ads I couldn't stand it after 10 minutes so I bailed.
You Tube Premium. No ads whatsoever.
Nguoi do dung la mantadevi armankhan johnson army ruoi dung la anh ay do
Enron der Sohn eines strichers
Enough with the diverse reenactments.
Sad that the average Joe was left with nothing.
Finally, a company that isn't related to the railroad industry
Next time he does a non-railroad-related company, he should discuss Pan Am (an airline). Or Cannon Group (a film studio).
@candycrushhater5828 pal, does it look like i was born yesterday? Everyone knows what Pan Am is
@@candycrushhater5828pan am railway
@@tristanexists1806 You don’t have to be so blunt about it. Jeez.
🇲🇽🛞🪞🧑💻