The Enron Illusion

Enron—the seventh-largest company in the U.S.—filed for Chapter 11 bankruptcy on 2nd December, 2001, marking the dramatic end of a business empire once hailed as unstoppable.  What once looked like a financial juggernaut turned out to be a house of cards built on illusory profits, market manipulation, and sheer audacity. “Creative” accounting, including mark-to-market practices, had inflated their profits by booking future revenues as current earnings.  In this episode, Arion, Rebecca and Olly explain how Enron emerged from a gas trading company to a dodgy corporate monolith; uncover the shady partnerships run by CFO Andrew Fastow; and reveal exactly what went wrong with the company’s beleaguered Indian power plant project…  Further Reading: • ‘The collapse of Enron and the dark side of business’ (BBC News, 2021): https://www.bbc.co.uk/news/business-58026162 • ’Former Enron CFO Andrew Fastow: ‘You can follow all the rules and still commit fraud’’ (The Irish Times, 2016): https://www.irishtimes.com/business/companies/former-enron-cfo-andrew-fastow-you-can-follow-all-the-rules-and-still-commit-fraud-1.2485821 • ‘Collapse of Enron (2001) | A Day That Shook the World’ (British Pathé, 2018): https://www.youtube.com/watch?v=3Z9Z2i3qfiw  Love the show? Support us!  Join  🌴CLUB RETROSPECTORS🌴to DITCH THE ADS and get an additional full-length episode each SUNDAY…  … Plus, get weekly bonus bits, and unlock over 100 bits of extra content.  Join now with a free trial on Apple Podcasts or Patreon and support our show ❤️ Learn more about your ad choices. Visit podcastchoices.com/adchoices

Om Podcasten

Curious, funny, surprising daily history - with Olly Mann, Rebecca Messina and Arion McNicoll. From the invention of the Game Boy to the Mancunian beer-poisoning of 1900, from Julius Caesar's invasion of Britain to America's Nazi summer schools... each day we uncover an unexpected story for the ages. In just ten minutes! Best Daily Podcast (British Podcast Awards 2023 nominee). Get early access and ad-free listening at Patreon.com/Retrospectors or subscribe on Apple Podcasts.