WASHINGTON -- Controversy is raging about the Enron collapse. Is it a political story? Is it a criminal story? Is it a business story? Is it a story about personalities? The Enron story is all three. The real question is which category is the most important. and that all depends on your perspective.
Enron, the nation's seventh largest business, an innovator of new business models and technologies for trading and an operator of power systems and pipelines, failed and fell into bankruptcy in a matter of weeks. The leaders of the company were larger than life and lived in the splendor and grandeur that we presumed was reserved for crowned rulers. The top dog (or culprit), Enron Chairman Kenneth L. Lay, is the largest single contributor to U.S. President George W. Bush's political career, dating back to his first unsuccessful run for Congress through his race for the White House. Lay also orchestrated contributions of millions of dollars to powerful government officials.
The venality of the business practices seems complete: hidden losses wrapped in partnerships that profited the chosen Enron few; the sales of more than $1.1 billion in inflated stock by company officials when lesser employees' stock holdings were stuck in their 401(k) plans until they were worthless. And all of these shenanigans were approved by the company's auditors, Arthur Anderson. It is a mess.
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