The end of the boom

 

When the Enron stock start falling Jeff Skilling was among the first who unloaded all theirs Enron stocks to market

 

 

The fragment of Enron: The Smartest Guys in the Room (2005)

Storchevoy M. A. Corporate Social Responsibility. 2013

Topic 9. CSR in Finance

 

Arrests and trial

In 2001 the criminal investigation had shown that the financial reports of Enron was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud. The case became known as the "Enron Scandal”. Ken Lay, Jeff Skilling and Andy Fastow were arrested.

 

 

The fragment of Enron: The Smartest Guys in the Room (2005)

Topic 9. CSR in Finance

 

 

Collapse

 

 

Consequences

• The stock price dropped from $90 to several cents.

• Shareholders bankruptcy ($11 000 000 000)

• Employees lost their pension savings

• 30 000 employees lost their jobs and their pensions

• Liquidation of Arthur Andersen accounting firm

• Imprisonment of several top-managers (K. Lay, J. Skilling, A. Fastow etc.)

• Vice-president Cliff Baxter committed suicide

 

 

Storchevoy M. A. Corporate Social Responsibility. 2013

Topic 9. CSR in Finance

 

Read this article. Does it remind you anything?

 

 

Gazprom profit rises despite falling gas sales

BBC, Thursday, 29 April

 

 

Russian gas monopoly Gazprom has reported a 3% rise in net profit for