Leonardo DiCaprio is set to produce and star in a movie about the collapse of Enron based on Kurt Eichenwald's book "Conspiracy of Fools." I plan to see it.
That title resonates with me because I was one of the many fools who bought Enron's bull, hook line and sinker. I liked the company. It seemed brash, daring and ready to change the world. For a reporter, Enron was a great story.
I spoke with Enron traders while reporting on the natural gas markets. I even met Jeffrey Skilling once or twice. He was tall, good-looking and wore a suit that I couldn't have afforded in my wildest dreams. Enron's headquarters in Houston was sleek and modern. The trading floor was buzzing with activity, at least when I was shown it during the tours run by Enron's PR staff.
Only years later did I realize that it was all a lie and I haven't been the same. As Eichenwald's book points out, Enron was a mess behind its shiny shell. Things were not nearly as great as I thought.
Whenever I hear someone say that investors need to "believe" in a company, I cringe. Yeah, investing is an act of faith, but it's not blind faith. You need to look very, very carefully before you leap.
The lesson of Enron is one that everyone's mother taught them long ago: if something is too good to be true, it probably is. Unfortunately, people seem to keep forgetting this and history continues to repeat itself.
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Reader Comments (Page 1 of 1)
2-13-2007 @ 4:47PM
John W said...
I hope everyone remembers that Ken Lay visited Congress and the Senate all week before Enron Collapsed. But make sure that you include that he visited the White House the last day before the collapse. I'll bet he was telling all those people in government we trust to sell all the Enron shares they were given free to look the other way! Do you disagree? Tell me what other reason would he have to spend a week with our trusted government especially the week he knew Enron was shutting the doors! Strange nobody has ever mentioned his behavior in Washington! And to think Martha Stewart was put away for Inside Trading and the largest inside trading scandal was gaining on at the same time. If our Government officials sold their shares that last week because of a tip from Ken Lay they helped cheat thousands of people out of the money Enron owed them! Where is the investigation? Isn't it time to bring out the DC trash?
2-16-2007 @ 11:04PM
YaYaTexasGal said...
Jonathan Berr, did you really meet Jeff Skilling? How tall are you? I'm 5'11" and could count the plugs on top of his head. I first met him in 1984 when he was a consultant with McKinsey & Company and was hired by my firm whose study resulted in the first reduction in force since the early 1900's. He was a jerk then and only got worse over the years.
Contrary to what you believe John W , Ken Lay was not well received in Washington before the Enron collapse. "Georgie Boy" refused to intervene or show any (family) favor, and Washington sent him packing.
Do you have any idea what it's like to be investigated by the Department of Justice? No matter how minute your roll was in the company, it is one of the most terrifying experiences of interrogation. The DOJ, FBI, FCC, PUC, FERC and others left no stone unturned during their investigations.
Ken Lay and Jeff Skilling were not the "fall guys" by any means - they are/were evil, greedy, criminal scumbag snakes who lied, cheated and bilked their own loyal employees and investors alike. Ken met his demise, and Jeff...well he'll make out fine in his country club prison, but I hope he sees Ken's face every night when he goes to sleep.
If you have legitimate suspicion of government fraud in the Enron case, I might suggest you contact the Attorney General and the DOJ at:
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530-0001
202-353-1555
AskDOJ@usdoj.gov
I'm sure they would be glad to hear from you.
JMO
"SUPPORT OUR SOLDIERS AND
BRING THEM HOME SWIFTLY"
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2-16-2007 @ 11:06PM
jonathan berr said...
I met him a couple of times. Unfortunately, I'm only 5 foot 8 and didn't notice the plugs.