The Rise and Fall of Enron - The Biggest Scandal in the History of American Finance

The Rise and Fall of Enron - The Biggest Scandal in the History of American Finance
What happened to Enron? What happened to Arthur Andersen? What was the Sarbanes-Oxley Act? What is Mark-to-Market Accounting? What happened to the Big Five? What was Arthur Andersen's role in the Enron scandal?
We explain the rise of energy company Enron and the business' dramatic fall from the seventh biggest corporation in the United States to total bankruptcy, thanks to fraud, corruption and greed.
Here's the Enron scandal explained. Here's How It Happened.
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#Enron
#ArthurAndersen
#HowItHappened
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[@domjervis]

I received two job offers after graduating with an Accounting degree in 1980. The firm I turned down was Arthur Andersen...WHEW!!!

[@KGopidas]

What about damages in India and Pakistan?

[@nathanj9350]

The problem with Arthur Andersen is that the prosecution was heavily skewed towards the federal government. The jury instructions included not having to be unanimous on the verdict, SCOTUS overruled this later. The prosecutors withheld evidence, blackmailed witnesses, harassed defendants and poisoned jury pools. Yeah you definitely dodged a bullet when going somewhere else.

[@bobbythomas6520]

I mean that’s 20 years prior. If you had done it right could’ve made a killing on stock options

[@Scotlandcraft557]

I've done a good amount of research about this stuff and this was concise and well explained, nice job!

[@HowItHappened]

Glad you enjoyed it!

[@denislanglois9243]

Wish you would have mentioned the courageous female whistleblower who risked everything to expose the truth.

[@sergiocastilleja2233]

Ridiculous that Texas Law didn't protect whistleblowers during this time period.

[@Sweet--Richard.4981]

​@@sergiocastilleja2233they did indeed

[@bradleyallison]

FTX was the next one, after that Citadel....

[@tonyfullmer2391]

FTX could be number 1 personally

[@imantsbrutans2702]

FTX is definetely nr1 :) With Citadel you mean bank citadele? I think we won't find something like this for a lot of years. But one way or the other - soon enough people will start lowering their shields again :)

[@VasVordokas]

Enron did use M2M accounting but shifted losses to shell companies that were off balance sheet. FYi, M2M accounting is NOT the practice of valuing financial assets at their FUTURE value. Its the accounting adjustment made on a periodic basis (eg daily, weekly, monthly average) to “mark” those financial assets to their respective secondary “market” (a stock market or clearing agent) where they can be immediately liquidated. Whether or not M2M adjustments result in gains or losses have a P/L impact would then depend on if hedge accounting is being used, and if so the respective transactions and notes to which those financial assets (or liabilities) are used as a hedge for. Some source and use cases include, amongst others, (1) using fx derivatives (futures forwards swaps options) to hedge USD volatility on a long term spot supply contract to a US company from an EU exporter (2) a property developer using interest rate derivatives to hedge against rising rates on their real estate loans

[@wensael5023]

Yeah, this is what I was thinking, M2M accounting was incorrectly defined in the video. Although they did also practice revenue recognition which is what he described to be M2M accounting.

[@YASH-xo9sl]

Who is here after FTX fall

[@BailBondGuy619]

Ahha yup

[@Maxpower50000]

Here after sivb

[@budnino8752]

@@Maxpower50000 me too SVB

[@angelolopez9567]

john oliver told me to google enron ehehehe

[@helpyourcattodrive]

Here

[@dulcem.hernandezg.4449]

Thank you so much, this further explained for me the SOX Compliancy that took place during 2002! Simple and precise, very informative.

[@cheapdutch4175]

I got here after I realized the E-corp logo from Mr. Robot looks like the Enron logo

[@AgentCP]

To reply to the narrator, the case for next Enron is already here! We’re on day 2 of Theranos in court. Coincidence CEO of Theranos is VP at Enron’s daughter?

[@HowItHappened]

✅

[@cybersid]

The word 'Theranos' contains all the letters in the word 'Enron'. Another coincidence?

[@sassagrass7095]

@@cybersid lmao

[@patstar5]

Hope Disney meets same fate as Enron

[@chrischris2320]

Is theranos a child of enron or is the daughter of an enron employee the VP of theranos? The wording is confusing

[@Mike-wc1ns]

It's never enough for those at the top. I've always said that Greed is the worst of all deadly sins.

[@maikolosav]

7.2 billion divided by 1.5 million victims is $4,800 per person, which is practically nothing. And I don't know if attorneys fees were taken out of the 7.2b 😅

[@Nehas06]

Love this video so short n concise including everything

[@Sashabooboo]

I was LEO in California and was a traffic investigator assigned to working Fatal collisions or crashes that involved permanent life altering injuries when Enron and rolling blackout happened. I once watched an officer attempt to direct traffic at a blacked out intersection (SR-76 and Rancho Del Oro Drive in Oceanside, California) until he had to abandon it because it was too dangerous. Collision reconstruction people talk to one another. Thousands of traffic collisions occurred during the rolling blackouts and they definitely, absolutely resulted in death. The people that caused the rolling blackouts are responsible for fatal collisions that occurred during that time frame at those affected intersecting points of travel. You killed people.

[@dylan.t180]

Keep up the great videos love watching these

[@HowItHappened]

Thanks a lot! We’ll keep trying 😊

[@thenecessitarian]

Tesla next

[@OmarLopez-nk1lo]

How her daughter committed the sane crime us beyond me,

[@MrSchillergaming]

Elizabeth Holmes

[@samuelkurniawan1383]

A fruit wont fall far from the tree.

[@evanpjohnson]

My ex wife’s father was one of many vp’s for Enron. He was a typical figure head who got the job through his successful father. The oldest was a massive success at Exxon mobile climbing to the top of the list. He got his son the Enron job I assume by connections.. His daughter is my ex wife. You all can connect the dots if you’d like. Also now my ex wife’s father, the former Enron vp, is tucked away in the woods on 5 acres near Austin. I would love to answer more questions but that really is almost all I know. Watch out who you trust with anything. -Evan

[@BenJaminLongTime]

sounds a lot like private equity firms method of self evaluating price and tanking companies

[@Littlestrawberii]

Thanks! This was explained super well, the visuals helped a lot.

[@eyeseer1]

Still recall the rolling blackouts and the exorbitant prices for electricity when Enron gambled on hijacked utilities in California while they literally based payroll on guesswork.

[@scholarlykelli]

This is why I don't trust companies nor corporate America

[@Oldag75]

The people of EOG (spun off from Enron before the collapse) and Accenture (spun off from Arthur Andersen before the disgrace) were disappointed when their divestitures took place -- but they were subsequently elated over their luck.

[@DrDuckMD]

I find it laughable that the exact fraud that they committed was prohibited in their employee code of conduct book.

[@markburnham7512]

I continue to believe that Ken Lay faked his death.

[@JamesFaye-lt4dv]

John doe corpse no post mortem hasty cremation....nahhh what could go wrong.

[@OfentseKekana]

Awesome video. Thanks!

[@HowItHappened]

Glad you enjoyed it 😃

[@MukeshMorwall]

Couldn't understand what the scandal was ?

[@scholarlykelli]

Overstating revenues with the use of off balance sheet debt tactic...and internally fattened revenues among executives with internal transactions....frankly lying by saying they were making more money than they were...they've been in debt for years and no company would do acquisitions with them after finding out they were hiding losses

[@dkupke]

Theft

[@TheMsdos25]

Got a Robin Hood ad before this video.

[@roblandau6766]

Looking forward to the sequel - Tesla

[@sahilsubba2471]

Thank you Lavine Sir, for this video 📹

[@michaelfornah8153]

1. What are the ethical issues(ethical dilemma). 2. The breach of auditing principles.

[@ethribin4188]

Its a 6min video, focused on the economic side. Youll propably find those details in a longer video.

[@eilinhernandez5903]

No diferente between Luma Rudy Madoff and Enron.

[@saadologue]

Why did it fail though?

[@foxmccloud7055]

The Whammy- "I'd better file these important financial documents!"

[@sankhadeepCHATTERJEE007]

Is Adani the next one?

[@BailBondGuy619]

Who knew it would be FTX lol. Except in ftx case it was their clients and not their employees

[@QANashvilleRealEstate]

Ftx: *hold my beer*

[@HowItHappened]

😂😂😂

[@mrrager13]

Came here after coffeezilla told Joe Rogan that FTX was worse than Enron.

[@chevyakacommas5961]

How do these people make money???

[@georgesouthwick7000]

It is amazing what you can get away with when you have the President and his former President father in your hip pocket.

[@jazzminbechtel2366]

Lucid and or Tesla

[@vladimirvillanueva3327]

Does Enron still exist today?

[@scholarlykelli]

No....I work across from the buildings

[@imantsbrutans2702]

@@scholarlykelli if they moved from the building doesn't necessarily mean that they don't exist :) Look at lehman brothers :)

[@snortons1]

Next Enron is the US government 🤷🏻‍♂️

[@josephpowell5560]

Over stating income = over stating real estate value

[@yournakomp-n3z]

Raegan Corners

[@nerbahjackson9995]

I think I know what the next enron will be

[@imantsbrutans2702]

apple

[@seanleaf3165]

Whos here after the silicon Valley Bank?

[@yoansimbafo5960]

The next Enron was the Wework scandal.

[@HowItHappened]

What about Theranos? (Check out our videos on both WeWork and Theranos!)

[@GHE2005]

This hardly showed who is really behind how the debts really started to be depleted. Good old W. Bush!

[@HoratioPamela-d6q]

Thompson Kimberly Gonzalez Robert Hall Richard

[@maryrudelich9000]

It’s certainly a talking point these days.

[@ListenToPeopleWhoKno]

Black Rock is the next Enron

[@MultiSciGeek]

Why is this narrated by google translate?

[@alexkunz4658]

Who is here after silicon valley bank

[@bukuraabdullahi4330]

Elon musk is next

[@Tsar-Czar]

You're delusional.

[@1439315]

Debt is for losers.

[@FryedSaw]

❤

[@StudyTrainAchieve37]

Reminds me of Elon 🤔

[@carsonkay4359]

common atrioc W

[@fifthhorseman2612]

Makahula kung sino ako sendan kong 50 sa GCash

[@eilinhernandez5903]

FBI CONNECT THE DOTS.

[@Andrew.3002]

Crypto!😂😂😂

[@tamlamoore7962]

TRIBAL LAW.. cancer research.. karma is coming 🎉🎉🎉

[@EditFilmz-vs5gq]

Not quite voted¥i'll leave 💅 ¥¥

[@flymikel9499]

Sounds trumpy to me. trump going to the bootayHouse

[@noahparfitt5151]

First 😅

[@HowItHappened]

:)

[@jasoncheng7964]

next enron apple inc

[@HowItHappened]

Looks like it was Theranos!

[@stephenmahelona6790]

I think the Enron will be Walt Disney company because of the woke problem Disney is facing right now

[@JamesFaye-lt4dv]

How many reportshave co.e out about suppisedly deceas d Enron CEO Ken Lay. being seen a the beach in Costa Rica.

[@vd_sv]

Guys, get ready to cook FAST

[@xxxslayerkillerweedlitxxx3878]

big a

[@bobhardcore6707]

i .member#

[@shahsoftinc.2459]

Keep going on, we need more quality content...

[@HowItHappened]

Thanks for the support! 🤩

[@AJ-Themes-for-Great-Cities]

Accenture... jeez, they are everywhere.

[@anas5146]

But why did the external auditors and board fail to prevent Enron’s failure?

[@dkupke]

The auditors were in on it

[@ralucadirjan4620]

Because most people are weak and cannot say no, especially when no would be the answer to the question: would you like more money in your pockets and bank accounts?

[@charlottenutty1501]

Love this