Merrill Lynch & Enron Nigerian Barge Scandal: Ethical Analysis
Enron, a Texas based energy company, was created in 1985 and had such phenomenal growth it was soon the seventh largest company in the U.S. until its bankruptcy in 2001. Enron was involved in a number of scandals, among which was the Nigerian Barge Case. Essentially, Enron attempted to sell interest in three power-generating barges off the coast of Nigeria, but was unsuccessful. By December of 1999, Merrill Lynch agreed to buy Enron's interest. Enron "loaned" ML 75% of the money, offering ML a guaranteed return of 15% on 7 million dollars ($1.05 million in 6 months).