Enron Of Enron And Enron - 1387 Words

Enron was formed in 1985 from the merger of two gas companies from Texas and Nebraska. Enron became the first company with all-American network of gas pipelines. In 1997 Enron bought power generating company Portland General Electric Corp. worth $ 2 billion. Before 1997 ended, the management turned the company into Enron Capital Trade Resources which became the largest American companies that trade in natural gas and electricity. Revenue increased dramatically from $ 2 billion to $ 7 billion by employees grew from 200 to 2,000 people. Enron formed also Enron Online (EOL) in October 1999. The EOL is a business unit of Enron that online marketing of energy products electronically through the website. In an instant, EOL successfully†¦show more content†¦European operations reported for bankruptcy on November 30, 2001, and two days later, on December 2, in the US Enron filed a request for protection of Chapter 11. At that time, the case was the largest bankruptcy in US history and led to 4,000 employees lost their jobs. Lawsuits against the directors of Enron, after the scandal, it stands out for its directors settle the lawsuit by paying huge amount of money in private. In addition, the scandal caused the dissolution of Arthur Andersen accounting firm, which consequently be felt among the wider business world. Enron began to unfold in December 2001 and continues to roll in 2002 is very broad implications for global financial markets were marked by declining stock prices drastically various stock exchanges around the world, from America, Europe, to Asia. Enron, a company that ranks seven of five hundred leading companies in the United States and is the largest energy company in the US went bankrupt with debts left nearly US $ 31.2 billion. In the case of Enron known occurrence of moral hazard behavior include the manipulation of financial statements by recording a profit of 600 million US dollars when the company suffered losses. Manipulation of profits due to the company s desire that the stock remains attractive to investors, this scandalous case involving the allegedly participated in the White House, including the vice president