Enron's Financial Fiasco Fire - Episode 71

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In today's episode, Ed takes us down memory lane to one of the biggest business fraud cases of the 20th century.

Enron was a company that was the product of two major gas businesses that merged together with a vision to change how the world viewed work culture and how to make money with wild result.

For much of much of the 90s, Enron was the future of corporate mentality and high morale among employees with tons of opportunity and even more prospects of striking it rich in the world of negotiating deals between natural gas sellers and buyers. As the years went by, Enron continuously dropped earnings reports that showed nothing but success, year over year growth, and a cash flow that would never end. As a result, Enron got rich, its executives got rich, investors got even richer, banks were happy to lend Enron money, and its employees were excited in what they sold.

There was one catch though...

...No one knew exactly how Enron was making any money! And that was done by design.

As you'll see in this episode, Enron's CEO Ken Lay, and his two conspirators Jeff Skilling and Andrew Fastow, quickly turned an honest company of limited (but honest and stable) growth to a company on a meteoric trajectory unlike anything else in American history. However, it was done by bending the rules, flagrant fraud, hiding figures, and implicating CPA firms in piles of shredded documents.

All of us have made some financial blunders in our time, but few in humanity have successfully railroaded a billion dollar publicly traded company into the ground quick like Lay, Skilling, and Fastow did. In a few short months in 2001, These three men went from millionaires to Federally convicted felons. We may be stressing over a missed credit car payment, but at least we didn't cost the life savings, retirements, and careers of over 100,000 men and women who were oblivious to all the craziness that was taking place on the 50th floor of Enron's corporate headquarters in Houston, Texas.

For pictures and show notes, check out The Day's Dumpster Fire website

Some other episodes Kara and Ed have put together that follows a similar "corporate greed and fraud" theme where business leaders prioritized money over literally EVERYTHING ELSE:

Therac-25

Boston Molasses Flood

I Love the Smell of Lead

Thalidomide

Outro Music Credit:

https://www.youtube.com/watch?v=bdNYSTbPuL0&list=PLfP6i5T0-DkKlAN_qDvZ3nJwsdKRmrxI_&index=

Hey before you go!

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