The Rise and Fall of Enron - The Biggest Scandal in the History of American Finance

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  • Опубліковано 8 лип 2021
  • The Rise and Fall of Enron - The Biggest Scandal in the History of American Finance
    What happened to Enron? What happened to Arthur Andersen? What was the Sarbanes-Oxley Act? What is Mark-to-Market Accounting? What happened to the Big Five? What was Arthur Andersen's role in the Enron scandal?
    We explain the rise of energy company Enron and the business' dramatic fall from the seventh biggest corporation in the United States to total bankruptcy, thanks to fraud, corruption and greed.
    Here's the Enron scandal explained. Here's How It Happened.
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    #Enron
    #ArthurAndersen
    #HowItHappened
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КОМЕНТАРІ • 111

  • @domjervis
    @domjervis 3 місяці тому +16

    I received two job offers after graduating with an Accounting degree in 1980. The firm I turned down was Arthur Andersen...WHEW!!!

  • @Scotlandcraft557
    @Scotlandcraft557 2 роки тому +87

    I've done a good amount of research about this stuff and this was concise and well explained, nice job!

  • @denislanglois9243
    @denislanglois9243 2 роки тому +90

    Wish you would have mentioned the courageous female whistleblower who risked everything to expose the truth.

    • @sergiocastilleja2233
      @sergiocastilleja2233 5 місяців тому +5

      Ridiculous that Texas Law didn't protect whistleblowers during this time period.

    • @Sweet--Richard.4981
      @Sweet--Richard.4981 27 днів тому

      ​@@sergiocastilleja2233they did indeed

  • @YASH-xo9sl
    @YASH-xo9sl Рік тому +119

    Who is here after FTX fall

  • @dulcem.hernandezg.4449
    @dulcem.hernandezg.4449 Рік тому +5

    Thank you so much, this further explained for me the SOX Compliancy that took place during 2002! Simple and precise, very informative.

  • @VasVordokas
    @VasVordokas 7 місяців тому +5

    Enron did use M2M accounting but shifted losses to shell companies that were off balance sheet. FYi, M2M accounting is NOT the practice of valuing financial assets at their FUTURE value. Its the accounting adjustment made on a periodic basis (eg daily, weekly, monthly average) to “mark” those financial assets to their respective secondary “market” (a stock market or clearing agent) where they can be immediately liquidated. Whether or not M2M adjustments result in gains or losses have a P/L impact would then depend on if hedge accounting is being used, and if so the respective transactions and notes to which those financial assets (or liabilities) are used as a hedge for. Some source and use cases include, amongst others, (1) using fx derivatives (futures forwards swaps options) to hedge USD volatility on a long term spot supply contract to a US company from an EU exporter (2) a property developer using interest rate derivatives to hedge against rising rates on their real estate loans

    • @wensael5023
      @wensael5023 6 місяців тому

      Yeah, this is what I was thinking, M2M accounting was incorrectly defined in the video. Although they did also practice revenue recognition which is what he described to be M2M accounting.

  • @bradleyallison
    @bradleyallison Рік тому +35

    FTX was the next one, after that Citadel....

    • @tonyfullmer2391
      @tonyfullmer2391 Рік тому

      FTX could be number 1 personally

    • @imantsbrutans2702
      @imantsbrutans2702 7 місяців тому

      FTX is definetely nr1 :) With Citadel you mean bank citadele? I think we won't find something like this for a lot of years. But one way or the other - soon enough people will start lowering their shields again :)

  • @Nehas06
    @Nehas06 11 місяців тому +2

    Love this video so short n concise including everything

  • @Littlestrawberii
    @Littlestrawberii 11 місяців тому +1

    Thanks! This was explained super well, the visuals helped a lot.

  • @shahsoftinc.2459
    @shahsoftinc.2459 2 роки тому +35

    Keep going on, we need more quality content...

  • @cheapdutch4175
    @cheapdutch4175 Місяць тому +1

    I got here after I realized the E-corp logo from Mr. Robot looks like the Enron logo

  • @sahilsubba2471
    @sahilsubba2471 Рік тому

    Thank you Lavine Sir, for this video 📹

  • @dylan.t180
    @dylan.t180 2 роки тому +6

    Keep up the great videos love watching these

    • @HowItHappened
      @HowItHappened  2 роки тому +2

      Thanks a lot!
      We’ll keep trying 😊

  • @OfentseKekana
    @OfentseKekana 2 роки тому +2

    Awesome video. Thanks!

  • @AgentCP
    @AgentCP 2 роки тому +27

    To reply to the narrator, the case for next Enron is already here! We’re on day 2 of Theranos in court. Coincidence CEO of Theranos is VP at Enron’s daughter?

    • @HowItHappened
      @HowItHappened  2 роки тому +2

    • @cybersid
      @cybersid Рік тому +3

      The word 'Theranos' contains all the letters in the word 'Enron'.
      Another coincidence?

    • @sassagrass7095
      @sassagrass7095 Рік тому

      @@cybersid lmao

    • @patstar5
      @patstar5 11 місяців тому

      Hope Disney meets same fate as Enron

    • @chrischris2320
      @chrischris2320 8 місяців тому

      Is theranos a child of enron or is the daughter of an enron employee the VP of theranos? The wording is confusing

  • @Sashabooboo
    @Sashabooboo 6 місяців тому +1

    I was LEO in California and was a traffic investigator assigned to working Fatal collisions or crashes that involved permanent life altering injuries when Enron and rolling blackout happened. I once watched an officer attempt to direct traffic at a blacked out intersection (SR-76 and Rancho Del Oro Drive in Oceanside, California) until he had to abandon it because it was too dangerous. Collision reconstruction people talk to one another. Thousands of traffic collisions occurred during the rolling blackouts and they definitely, absolutely resulted in death. The people that caused the rolling blackouts are responsible for fatal collisions that occurred during that time frame at those affected intersecting points of travel. You killed people.

  • @BenJaminLongTime
    @BenJaminLongTime 2 місяці тому +1

    sounds a lot like private equity firms method of self evaluating price and tanking companies

  • @evanpjohnson
    @evanpjohnson Рік тому +13

    My ex wife’s father was one of many vp’s for Enron. He was a typical figure head who got the job through his successful father. The oldest was a massive success at Exxon mobile climbing to the top of the list. He got his son the Enron job I assume by connections.. His daughter is my ex wife. You all can connect the dots if you’d like. Also now my ex wife’s father, the former Enron vp, is tucked away in the woods on 5 acres near Austin. I would love to answer more questions but that really is almost all I know. Watch out who you trust with anything.
    -Evan

  • @eyeseer1
    @eyeseer1 8 місяців тому

    Still recall the rolling blackouts and the exorbitant prices for electricity when Enron gambled on hijacked utilities in California while they literally based payroll on guesswork.

  • @OmarLopez-nk1lo
    @OmarLopez-nk1lo 2 роки тому +19

    How her daughter committed the sane crime us beyond me,

  • @TheMsdos25
    @TheMsdos25 Місяць тому

    Got a Robin Hood ad before this video.

  • @maikolosav
    @maikolosav Місяць тому +1

    7.2 billion divided by 1.5 million victims is $4,800 per person, which is practically nothing. And I don't know if attorneys fees were taken out of the 7.2b 😅

  • @Mike-wc1ns
    @Mike-wc1ns 6 місяців тому +1

    It's never enough for those at the top. I've always said that Greed is the worst of all deadly sins.

  • @charlottenutty1501
    @charlottenutty1501 5 місяців тому

    Love this

  • @scholarlykelli
    @scholarlykelli Рік тому +1

    This is why I don't trust companies nor corporate America

  • @AJ-Themes-for-Great-Cities
    @AJ-Themes-for-Great-Cities 2 роки тому +6

    Accenture... jeez, they are everywhere.

  • @sankhadeepCHATTERJEE007
    @sankhadeepCHATTERJEE007 Рік тому

    Is Adani the next one?

  • @anas5146
    @anas5146 Рік тому

    But why did the external auditors and board fail to prevent Enron’s failure?

    • @dkupke
      @dkupke 9 місяців тому

      The auditors were in on it

    • @ralucadirjan4620
      @ralucadirjan4620 5 місяців тому

      Because most people are weak and cannot say no, especially when no would be the answer to the question: would you like more money in your pockets and bank accounts?

  • @saadologue
    @saadologue 14 днів тому

    Why did it fail though?

  • @roblandau6766
    @roblandau6766 7 місяців тому +1

    Looking forward to the sequel - Tesla

  • @foxmccloud7055
    @foxmccloud7055 7 місяців тому

    The Whammy- "I'd better file these important financial documents!"

  • @michaelfornah8153
    @michaelfornah8153 2 роки тому +3

    1. What are the ethical issues(ethical dilemma).
    2. The breach of auditing principles.

    • @ethribin4188
      @ethribin4188 Рік тому

      Its a 6min video, focused on the economic side.
      Youll propably find those details in a longer video.

  • @QANashvilleRealEstate
    @QANashvilleRealEstate Рік тому +2

    Ftx: *hold my beer*

  • @xxsdoriginalxx7783
    @xxsdoriginalxx7783 Рік тому +1

    Who knew it would be FTX lol. Except in ftx case it was their clients and not their employees

  • @MukeshMorwall
    @MukeshMorwall Рік тому +1

    Couldn't understand what the scandal was ?

    • @scholarlykelli
      @scholarlykelli Рік тому

      Overstating revenues with the use of off balance sheet debt tactic...and internally fattened revenues among executives with internal transactions....frankly lying by saying they were making more money than they were...they've been in debt for years and no company would do acquisitions with them after finding out they were hiding losses

    • @dkupke
      @dkupke 9 місяців тому

      Theft

  • @thenecessitarian
    @thenecessitarian 25 днів тому +2

    Tesla next

  • @eilinhernandez5903
    @eilinhernandez5903 Рік тому +2

    No diferente between Luma Rudy Madoff and Enron.

  • @markburnham7512
    @markburnham7512 6 місяців тому +3

    I continue to believe that Ken Lay faked his death.

    • @JamesFaye-lt4dv
      @JamesFaye-lt4dv 24 дні тому +1

      John doe corpse no post mortem hasty cremation....nahhh what could go wrong.

  • @chevyakacommas5961
    @chevyakacommas5961 5 місяців тому

    How do these people make money???

  • @mrrager13
    @mrrager13 Рік тому

    Came here after coffeezilla told Joe Rogan that FTX was worse than Enron.

  • @ashtiw11
    @ashtiw11 Рік тому +1

    Adani is the next Enron

  • @vladimirvillanueva3327
    @vladimirvillanueva3327 2 роки тому +2

    Does Enron still exist today?

    • @scholarlykelli
      @scholarlykelli Рік тому

      No....I work across from the buildings

    • @imantsbrutans2702
      @imantsbrutans2702 7 місяців тому

      @@scholarlykelli if they moved from the building doesn't necessarily mean that they don't exist :) Look at lehman brothers :)

  • @seanleaf3165
    @seanleaf3165 Рік тому

    Whos here after the silicon Valley Bank?

  • @GHE2005
    @GHE2005 11 місяців тому

    This hardly showed who is really behind how the debts really started to be depleted. Good old W. Bush!

  • @yoansimbafo5960
    @yoansimbafo5960 2 роки тому +2

    The next Enron was the Wework scandal.

    • @HowItHappened
      @HowItHappened  2 роки тому +1

      What about Theranos? (Check out our videos on both WeWork and Theranos!)

  • @nerbahjackson9995
    @nerbahjackson9995 8 місяців тому

    I think I know what the next enron will be

  • @maryrudelich9000
    @maryrudelich9000 Рік тому

    It’s certainly a talking point these days.

  • @alexkunz4658
    @alexkunz4658 Рік тому

    Who is here after silicon valley bank

  • @ListenToPeopleWhoKno
    @ListenToPeopleWhoKno 7 місяців тому

    Black Rock is the next Enron

  • @bukuraabdullahi4330
    @bukuraabdullahi4330 Місяць тому +2

    Elon musk is next

  • @1439315
    @1439315 9 місяців тому

    Debt is for losers.

  • @eilinhernandez5903
    @eilinhernandez5903 Рік тому

    FBI CONNECT THE DOTS.

  • @xxxslayerkillerweedlitxxx3878
    @xxxslayerkillerweedlitxxx3878 10 місяців тому

    big a

  • @carsonkay4359
    @carsonkay4359 Рік тому

    common atrioc W

  • @fifthhorseman2612
    @fifthhorseman2612 Рік тому +1

    Makahula kung sino ako sendan kong 50 sa GCash

  • @snortons1
    @snortons1 4 місяці тому

    Next Enron is the US government 🤷🏻‍♂️

    • @josephpowell5560
      @josephpowell5560 4 місяці тому

      Over stating income = over stating real estate value

  • @noahparfitt5151
    @noahparfitt5151 2 роки тому +2

    First 😅

  • @EditFilmz-vs5gq
    @EditFilmz-vs5gq Рік тому

    Not quite voted¥i'll leave 💅 ¥¥

  • @Andrew.3002
    @Andrew.3002 Рік тому +2

    Crypto!😂😂😂

  • @tamlamoore7962
    @tamlamoore7962 6 місяців тому

    TRIBAL LAW.. cancer research.. karma is coming 🎉🎉🎉

  • @jasoncheng7964
    @jasoncheng7964 2 роки тому +1

    next enron apple inc

  • @flymikel9499
    @flymikel9499 8 місяців тому

    Sounds trumpy to me. trump going to the bootayHouse

  • @stephenmahelona6790
    @stephenmahelona6790 6 місяців тому

    I think the Enron will be Walt Disney company because of the woke problem Disney is facing right now

  • @JamesFaye-lt4dv
    @JamesFaye-lt4dv 24 дні тому

    How many reportshave co.e out about suppisedly deceas d Enron CEO Ken Lay. being seen a the beach in Costa Rica.

  • @bobhardcore6707
    @bobhardcore6707 Рік тому +1

    i .member#