Contact Us
Sign In / Sign Up for FREE
Go to advanced search...
Nobody downloaded yet

How The Fall of Enron Affected the United States Economy - Case Study Example

Comments (0) Cite this document
The paper "How The Fall of Enron Affected the United States Economy" states that Today we have things such as the Sarbanes-Oxley Act 2002 to prevent companies and their managers from engaging in dubious accountancy practices. This Act was passed to establish more stringent standards…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
How The Fall of Enron Affected the United States Economy
Read TextPreview

Extract of sample "How The Fall of Enron Affected the United States Economy"

Download file to see previous pages Kenneth Lay was made the Chief Executive Officer and he wanted to expand Enron’s market share as well as the markets Enron was in since he had a very different vision for the new shape of the company (Welch, 2005).
Houston Natural Gas had previously been in the business of generating their revenues from junk bonds from which its proceeds were used in the formation of Enron. Kenneth Lay aimed at becoming the biggest player in the energy sector through successful trade earnings from futures contracts (NPR, 2006). To his advantage, Spectrum 7, an oil-well concern welcomed a partnership with Enron a year after its creation. Spectrum 7 was headed by George W. Bush, son of the then-Vice President George H. W. Bush. With falling gas prices in the mid-1980s, Enron and other gas firms vigorously lobbied for deregulation to get benefits for themselves (Thomas, 2002). It has been known for many years that political connections can help a business but such situations often come to light only if the business is unsuccessful (Medawar, 1976).
The deregulation action came into effect when buyers switched to the cheaper alternative – fuel oil. No doubt fluctuating gas prices allowed Enron to start marketing gas futures; securing gas prices at later date promised to their stakeholders. Similarly, the company lobbied once again for electricity just before selling electric power futures contracts (NPR, 2006). From then on, Enron was aggressive in expanding its services in the other sectors such as the water utility sector by creating Azurix which partly collapsed on the NYSE in 1999 and finally shut down operations in 2001 (Thomas, 2002).
Concurrently, Jeffery Skilling who had been hired in 1990 to lead the financial side of Enron’s operation became a major proponent of the energy trading businesses and became the president and COO for Enron. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(How The Fall of Enron Affected the United States Economy Case Study, n.d.)
How The Fall of Enron Affected the United States Economy Case Study. Retrieved from
(How The Fall of Enron Affected the United States Economy Case Study)
How The Fall of Enron Affected the United States Economy Case Study.
“How The Fall of Enron Affected the United States Economy Case Study”.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF How The Fall of Enron Affected the United States Economy

United States Economy

Introduction: History of the economy of United States We are going to go aboard on a journey to look at the economy of United States. This inquisitiveness will lead us to scrutinize the economy’s operations, structures, and performance at a given time and its changes over time. We are going to look at the industries that have become additionally important in the United State economy and how the government is taking over the share of the nation’s output. The growth of people’s income, the distribution of people’s income among many more will be addressed. For a long time, the key to United States economy had been southern agriculture. But the civil war which began in April 1861 nearly destroyed everything. However, the country came...
6 Pages(1500 words)Research Paper

The United States Economy: Outline

... knowledge and physical infrastructure upgrades. c. Move towards higher engineered products 5. Fixing the trade imbalance a. Highlight the effect of a trade imbalance b. Highlight steps that can be taken to fix the trade imbalance 6. Conclusion The United States Economy The United States of America is an economic powerhouse, and is the largest economy in the world. According to the CIA World Factbook (2011) it is the case that the U.S. economy has an official GDP $14.62 trillion in 2010. However, the economy of the United States is experiencing a number of challenges. Without question the recent economic downturn has had a devastating effect on the American people, and the economy as a whole. What this paper helps to do is to identify three...
3 Pages(750 words)Essay

Economy of the United States:

The economic system of the United States can be described as a capitalist free market-oriented mixed economy, in which corporations and other private firms make the majority of microeconomic decisions and governments prefer to take smaller role in the domestic economy, although the United States' government's role is relatively large, at 38% of the GDP.1 The largest sector in regards to the United States' economy is service, which employs roughly three quarters of the work force; the economy is fueled by an abundance of natural resources, such as coal, petroleum and precious metals, however, the country still depends upon foreign nations for large amounts of resources, such as petroleum.
The economy of the United States is o...
15 Pages(3750 words)Essay

Economy of United States

...-makers.)" (Foster, 2008). The answers to all these questions depend on the same pivot: lack of regulation and an "irrational exuberance" that though identified was not acted upon. The results are there for all to see. As the panic in the markets refuses to subside and the markets in free fall, the questions may very well lead to recriminations. And in this context, the election of Barack Obama as the 44th president of the United States means that there might be more regulatory oversight and a throwback to the old days where de-regulation was not the buzzword as it is being made out now. OPPORTUNITY While this current crisis may seem to be going out of hand, it is also a good time to think on how to capitalize from it. There can...
8 Pages(2000 words)Essay

The Fall of Enron

... The Fall of Enron In the most general terms, the meaning of crime can be defined as an act of wrongdoing that goes against the principles and rules laid down by a particular country or set of people. A crime committed could be attributed to a state of mind and/or body by the criminal and his/her intent. The nature of crime is determined by several legal factors depending on the circumstances and situation it was committed in. Nonetheless, several different types of crime are being committed daily. The one being presented in this paper is that of white-collar crime, also referred to as organized crime, for it is carefully planned and systematically executed over a period of time. It was 1985 when Kenneth Lay’s Houston Natural Gas merged...
6 Pages(1500 words)Essay

Recent Trends in the United States Economy

...Recent Trends in the US economy The recent developments in the US economy, to be exact, since 2004 to the later part of 2008, has commonly been ified as a period of global meltdown. During the initial years, the economy witnessed an excess supply of funds in the market due to an expansionary monetary policy of interest rate hike being adopted by the Fed, as a precautionary measure against recession. This resulted to a rise in the amounts of loans being advanced by the banks and that also with a desperate objective of earning higher revenues in the process, by advancing loans at high interest rates to sub prime borrowers, i.e., those who cannot offer any mortgages against the loans that they took. The frantic pace at which the banks started...
1 Pages(250 words)Assignment

Shipping Jobs Overseas (How it affects United States Economy)

... How Shipping Jobs Overseas affects the U.S. Economy With the advent of the internet and massive computing systems the world is becoming an ever-shrinking globe. National boundaries are becoming blurred as people in other countries, notably Mexico and India, begin working for companies in the United States. Globalization and the resulting process of outsourcing has been a hotly debated topic in the media, political and social circles for the past several years. It is typically viewed as a necessary and unavoidable key to future world economic development. Others have denounced the process as it seems to increase the current inequalities that exist within and between nations, threatens the employment and living standards of individuals...
6 Pages(1500 words)Research Paper

How has the United States Affected me so far

... [Teacher’s The culture difference ad diversity that exists in the world is a big part of what makes humanity so special and unique. An individual living in a foreign land can feel as though he is in another planet due to the different lifestyles and customs (Fiske, 22). The United States of America is one of the most culturally diverse nations in the world and for this reason it has more freedom and more tolerance than other nations. Living in the United States has greatly influenced me as a person in terms of my opinions as well as relations to others. I’m originally from Kazakhstan which is an Islamic country with very strict morals and rules. For example, parents play a more vital and dominant role in a child’s life...
2 Pages(500 words)Essay

The Economy of the United States

... US Economy Introduction The economy of the United s in the past few years has gone through a major slump. This slump has been seen through their real estate crisis, rise in unemployment rates, and their reduced competitiveness in the global economic setting. This economic crisis was not helped by the matching economic crisis felt in other western nations as well, such as the United Kingdom, Australia, Japan, and similar developed nations. In so many ways, this crisis has been a result of the rise in oil prices which has affected the general prices of commodities and the transport of people and goods from one place to another. Much analysis is needed in order to fully comprehend the US economic crisis. This paper shall now analyze...
10 Pages(2500 words)Coursework

Economy of the United States

The poverty rate has stayed mostly unmoved since the 1960s. Currently, an estimated 32.2 million Americans survive beneath the poverty line. These people are also not given sufficient unemployment benefits from the government to assist raise their families. However, this does unswervingly tie into the squat smallest amount wage, but they link one another in some instances when even the working poor cater for themselves. Currently, several Americans are striving to remain economically stable. However, for those who are poor the minimum wage is not sufficient to sustain them. Poor people work full time and sometimes do two jobs but they still do not make enough to project them above the poverty line. Although in a balanced economy t...
8 Pages(2000 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic How The Fall of Enron Affected the United States Economy for FREE!

Contact Us