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Response to Ji Woo Chai: Indeed, the Sarbanes-Oxley Act was able to put in place controls and measures to prevent the reoccurrence of the Enron scandal. However, there has to be more done because of what occurred before and during the financial crisis. Thus, there may be a need to amend the SOX Act or ratify a new law altogether.
Response to Diana Rakadzhieva1: I agree, no matter how many laws or control mechanisms are put in place, there will still be people who will try to find ways of getting away with things. The new laws and technologies will of course make it more difficult for these nefarious groups and individuals to do their misdeeds. In due time though, they will stop at nothing from engaging into their self-serving actions.
Response to Diana Rakadzhieva2: It seems that Jeffrey Skilling's son,...
He may have felt the burden of his father's wrongdoings that he could not face the shame and resorted to what he may deemed then to be the only escape. Too bad John did not heed the adage that, "the sins of the father are not the sins of the son."
Response to Derek Blackmore: Trying to control how much CEOs are paid should on the government's top regulatory legislation. As history has shown, this seems to be only focused upon whenever scandals such as Enron occurs; then it dies down. The same issue arose again during the financial crisis and still no concrete legislation has been enacted; as the French say "plus ca change, plus c'est la meme chose."
Bibliography:
Lehrer, Jim. Corporate Crackdown: Enron. PBS Newshour. 2006. 29 Jul. 2011. .
Bibliography:
Lehrer, Jim. Corporate Crackdown: Enron. PBS Newshour. 2006. 29 Jul. 2011.
Enron Leadership Enron collapsed very quickly in November 2001, and its failure should have been a warning to serious dysfunctions in the entire corporate and financial system, but this did not happen. Its executives admitted that they had falsified its records going back for at least five years, although in reality they had been doing so since the 1980s. When the company filed Chapter 11 bankruptcy it laid off over 20,000
Enron could engage in their derivative trading strategy with no fear of government intervention because derivative trading was specifically exempted from government regulation. Due in part to a ruling by the Commodity Futures Trading Commission's (CFTC) chairwoman, Wendy Graham, derivatives remained free of regulatory oversight. Ms. Graham, wife of Texas senator Phil Graham, made this ruling 5 weeks before resigning as chairwoman of the CFTC and joining the Enron Board
Enron Scandal: Who was Responsible and Why? Background of Enron Scandal and Timeline of Events Key Players in Enron Scandal The Enron Scandal was the biggest accounting fraud in U.S., indeed worldwide, business history. The following paper gives a brief history of the events leading up to the scandal, a timeline for the events surrounding the uncovering of the scandal and the events following the public knowledge of the scandal. Key players in
Enron hid most of its debts by establishing several LLPs, with some of them being secretly ran by Andrew Fastow, CFO at Enron. By counting only the gains and losses of the companies, but not having to report the LLPs on its financial sheet, Enron's financial position seemed very good. Consolidating the statements would have defeated the purpose of Fastow because the goal was to dump debt, not to report
THE PEOPLE BEHIND THE RISE AND FALL OF ENRON Kenneth Lay being one of the pioneers of Enron from its establishment in 1986, had lead the way of Enron's emergence as one of the leading company in the U.S. And eventually to its collapse and declaration of bankruptcy on December 2001. Kenneth Lay held the position as the CEO and chairman of Enron from 1986 to January 23, 2002. Lay is
Disregarding its Ethical Code. Enron had its own set of Ethical Code, but it became redundant because the top managers at the company hardly paid any heed to it. The corporate culture at the company was focused on making "deals" and increasing Enron's share value, while the "outdated, theoretical concept of ethics and morality" was kept on the back-burner. Enron's 'ethics' was personified by Kenneth Lay's exercising of his stock options