Enron

The FTX fraud has dominated headlines now for weeks, during which we’ve debated if and how Acquired could uniquely add to the conversation. Then we realized there was an angle so perfect that we had to drop everything and enter Acquired research overdrive: Enron. Travel back with us to the granddaddy fraud of them all, 2001’s then-largest bankruptcy in US history and the impetus for the famous Sarbanes-Oxley Act. So much of Enron’s history parallels FTX that the uncanniness is almost unbelievable - right down to the same CEO running the two bankruptcies. Sit back and enjoy this crazy tale of villainy, greed, and the nature of humans and money. Maybe just don’t take notes on this one…
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Sponsors:
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And finally thank you also to Pilot!
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Links:
Book Andy Fastow as a speaker for your next corporate event!
www.bigspeak.com/speakers/and...
Episode sources:
docs.google.com/document/d/1W...
Carveouts!:
Enron: The Musical
www.broadway.com/shows/enron/
Andor
disneyplusoriginals.disney.co...
Brooks Addiction Walkers
www.brooksrunning.com/en_us/a...
Hoka Slides
www.hoka.com/en/us/all-gender...
JCal on the Tim Ferriss Show
tim.blog/2022/11/19/jason-cal...
New shirts are live in the ACQ Merch Store!
cottonbureau.com/people/acqui...
Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.

[@peterolbrisch8970]

The water deal in south America went bad because the employees that already worked there learned they were being let go, so they destroyed all the customer information. They didn't know who to bill. Then there was that mall explosion in Puerto Rico that they were responsible for because the employees didn't know how to calibrate the gas detectors. Then that failed power plant in India. This company failed at everything, how could you work there and not wonder how the company stayed in business?

[@MackaWhy]

Very impressive and thorough review of events. I didn’t expect to finish this whole thing in one go but before I knew it it was coming to a close. I especially liked the description of the main folks in charge. Both in their public demeanor before and after Enron as well as education background. Incredibly underrated channel. This content should have substantially more views.

[@GSery]

This is one of the best podcasts, if not the best. so informative. i can't believe it has approx. 1.5k views, should be in hundreds of thousands, if not millions. so well done. both speakers are so well researched, knowledgeable and have a unique way of speaking. I am a fan for life. can't believe I didn't know this podcast existed just a week ago. so many peeps looking to get more info into what was going at FTX and this is a perfect idea to explain just that!!

[@AcquiredFM]

Thanks so much!

[@JohnsonsAtranny]

Did you miss the part that when W became POTUS, Lay was rumored to be the Secy. Energy? The SOX straight jacket became my life after Enron

[@alexc2649]

Andersen Consulting Split from Arthur Andersen way before the enron bankruptcy. They began splitting in 1989. The final split happened in 2000. They rebranded in early 2001.

[@cbbcbb6803]

Invest in the best companies, you say? There was a time when ENRON was a so-called "best" company. Oh. And, people generally do *not* learn from history. Ask questions? Ask what questions? Who knows what questions? The first question to ask is "what questions should we ask?"

[@neoibnid303]

Love this channel, podcast. Would you do an ep about the big 4? 🎉

[@afterhours21711]

What's the difference between California and the Titanic? The Titanic had its lights on when it sank.😂

[@andrewbrackin7375]

This is really well done - than you guys! I listened to the whole thing and it was captivating.

[@AcquiredFM]

Appreciate it, Andrew!

[@lindagalindo2524]

I haven't finished listening yet but hope you answer...Is mark to market accounting still legal / allowed?

[@danielmurrell5285]

Really enjoyed this. Will be listening to your other content at work. Thoroughly recommend the book 'Smartest guys in the room' and the book by Brian Cruver - adapted to a TV film called "the crooked E" available on KZbin. I'm fascinated by what makes otherwise smart founders, CEOs, and executives.cross the line either in terms of risk, morality or legality. When you're worth 10s of millions legitimately I don't see the upside from taking risks that will wipe you out, or worse ruin your reputation and end up with a trip to club fed.

[@realbillmitchell]

I think it is interesting to think if Enron had decided to offer dividends for shareholders, if Enron would still be around, or at least had been around longer than their 2001 demise. Because shareholders would act like some of the greedy executives of the company, they would turn a blind eye as long as the dividend check was good.

[@peterolbrisch8970]

Back then, some people read newspapers.

[@ddmilado]

this should be fun😃

[@omarlash]

No video?!

[@aloufin]

just play smartest guys in the room on mute, u dont need to see podcasters mouths moving do u lol

[@TAB_123]

Your reluctance to use a “curse word”gave me the ick. Feels immature. I promise there are no 7 year olds watching this 3.5 hr long video on the fall of Enron.

[@motherlessgoat72]

I think it's more so for the KZbin algorithm. The timestamp of the video was fairly close to the beginning, which is when KZbin's automated program usually gives a cursory sweep of the video to determine if there are demonetization worthy violations. I think they do the same to the end of the video. Unfortunately, even though no child is going to be listening to a podcast like this, if they were to come out of the gate swinging so to speak, they would be less likely to make money on their video. It's a stupid system, I know, but KZbin bows to the advertising gods, and podcasters on KZbin want to make a bit of income on their content. It's a bitter pill to swallow. 😔