CS 365 - Programming
Semester 2005, Section 31252
Notes Regarding Enron
- Two companies, Houston Natural Gas (HNG) and InterNorth
merged to form Enron. At the time HNG's CEO was Kenneth Lay, who took
over as the CEO of Enron. (Lay would later be chairman of the Board.)
Originally, the business was pipelines and power plants, but under the
direction of Lay it expanded to more of a commodities trading
business -- "making deals," so to speak.
1999 - Started
EnronOnline, allowed Enron traders to execute trades in real time.
2000 - California Energy
Crisis --- caused in part by Enron.
2001 - The year of the
Enron's rapid decline.
May 2001 - Federal
Investigations of Enron over the California Crisis
August 2001 -
Skilling resigns., Sherron Watkins note to Ken Lay about bad accounting
October 2001 - Enron
forced to declare losses that they had hid from investors. Stock prices
plummets. Financial structure based on stock price starts to crumble.
November 2001 - A merger
with Dynegy fails to happen.
December 2001 - Enron
files for bankruptcy.
People and Terms (that you might see)
Lay - Founder, CEO and later chairman of the board
Jeff Skilling - The #2
guy, later became the CEO. He sanctioned some of the accounting and
trading schemes to hide the company's actual performance.
Andy Fastow - Chief
Financial Officer who created kind of fake companies known as SPEs (Special Purpose Entities) such
as LJM1, LJM2 and Chewco to hide Enron problems. (The
business plan was that the stock would always go up.) Another series of
such deals were known as the Raptor
Greg Whalley - Head of
the Enron traders, replaced Skilling when he left.
John Lavorato - A Whalley
Louise Kitchen - Came up
with the EnronOnline system.
Jeff McMahon - Enron
treasurer at the end
Jeff Dasovich - Enron
Steve Kean - Enron
executive vice president and chief of staff
Richard Sanders - Head
of Litigation for Enron North America.
Vince Kaminski - An Enron
Chuck Watson - Dynegy CEO
Arthur Andersen ---
Enron's auditing firm. They were indicted for illegal accounting
David Duncan - Enron
auditor and laison with Andersen.
DPC (Dabhol Power Company),
Maharastra, MSEB (Mahara. State Energy Board) -- these are
terms that refer to the power plant that Enron tried to build in India.
Gray Davis - Governor of
California (before Schwarznegger).
FERC - Federal Energy
CPUC - California Public