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Enron :

Enron Corporation was an American energy, commodities, and services company based


in Houston, Texas. It was founded in 1985 as a merger between Houston Natural Gas
and InterNorth, both relatively small regional companies.

Ceased operations: 2007

Founded: July 1985, Omaha, Nebraska, United States

Headquarters: Houston, Texas, United States

Traded as: NYSE: ENE

Number of employees: 29,000 (2001)

Founders: Jeffrey Skilling, Kenneth Lay

How much is Enron worth?


At its peak, Enron was worth about $70 billion, its shares trading for about $90 each. All that came
crashing down starting last October, when the company admitted that it had misstated its income
and that its equity value was a couple of billion dollars less than its balance sheet said.

Where did Enron go wrong ?

The Enron scandal, publicized in October 2001, eventually led to the bankruptcy of


the Enron Corporation, an American energy company based in Houston, Texas, and the de facto
dissolution of Arthur Andersen, which was one of the five largest audit and accountancy
partnerships in the world.

Is Enron Overpriced? ... While tech stocks were bombing at the box office last year, fans couldn't get
enough of Enron, whose shares returned 89%. By almost every measure, the company turned in a
virtuoso performance: Earnings increased 25%, and revenues more than doubled, to over $100
billion.

What year did Enron collapse ?

2007

Enron failed because they had no regard for the consequences of their actions. Enron is a classic
example of management's disregard for the common man while solely being focused on
profits. Enron became essentially a trading company for commodities and utilities primarily.

Arthur Andersen

Arthur Andersen LLP was an American holding company based in Chicago. Formerly one of the "Big
Five" accounting firms the company had provided auditing.

Successor: Accenture; Andersen Tax LLC


Defunct: August 2002; 17 years ago

Products: Professional services

Fate: Split after being charged in the Enron Scandal. Auditing portion went out of bus...

After 89 years in business, Arthur Andersen LLP on Saturday ended its role as auditor of public
companies. ... The company now has fewer than 3,000 of the roughly 28,000 employees it had
before the Enron scandal. Of its more than 1,200 public-company audit clients, none will remain.

On June 15, 2002, Andersen was convicted of obstruction of justice for shredding documents


related to its audit of Enron, resulting in the Enron scandal. Although the Supreme Court reversed the
firm's conviction, the impact of the scandal combined with the findings of criminal complicity
ultimately destroyed the firm.

Arthur Andersen was also accused of destroying thousands of Enron documents that included not
only physical documents but also computer files and E-Mail files. After investigation by the US
Justice Department, the firm was indicted on obstruction of justice charges in March 2002.