Enron

Enron is an energy and communications company based in HoustoN?, Texas. It was once one of the largest companies in the world, and expected to dominate the trading it had virtually invented in communications, power and weather securities?.

After a series of scandals involving irregular accounting procedures bordering on fraud, Enron stood at the verge of undergoing the largest bankruptcy in history by mid November 2001. A [white knight]? rescue attempt by a much smaller energy company was not viable.

Enron was originally involved in the transmission and distribution of electricity and gas throughout the United States & the development, construction & operation of power plants, pipelines etc worldwide.

Enron grew wealthy by its pioneering marketing and promotion of power & communications bandwidth commodities, and related risk management derivatives as tradable securities, including exotic items such as weather derivatives.

As a result Enron was named "America's Most Innovative Company" by Fortune for five consecutive years, from 1996-2000. It was on Fortune's "100 Best Companies to Work for in America" list of 2000, and was legendary even amongst the elite workers of the financial world for the opulence of its offices.

The fall of the value of investors' equity per share in Enron during 2001, from $85 to 30 cents, would be remarkable for any company. As Enron was considered a [blue chip]? stock, this is an unprecedented and disasterous event in the financial world.

The long term implications of Enron's collapse are unclear.