EES Structured Finance Group, 182
electricity, 49, 177, 178, 221, 248, 280, 300
electricity trading, 64, 106, 110, 223, 260, 264–83, 284
electric utilities, 166, 230
Elektro Eletricidade, 259, 366
Eli Lilly, 86, 304
Ellison, Larry, 293
El Paso, 105, 192, 220, 241, 319
El Paso Electric, 271
emerging markets, 73–74, 75, 77–83, 88–89
Emshwiller, John, xvii, 349, 360, 364
energy bubble, 36
energy crisis, 6, 33
Energy Department, 82
energy-derivatives trading, 96
energy efficiency, 177–78, 183–84
Energy Market Report, 269
energy markets, 264, 413
global, 385
energy traders, energy trading, 109, 133, 226, 264, 266, 267–79, 282–83, 299–304, 393, 413
deals of, see Death Star; Fat Boy; Get Shorty; Ricochet; Silverpeak
England, 22, 44, 48, 49, 52, 111, 113, 246, 346
“Enron: Managing Off-Balance-Sheet Financing,” 237
Enron Broadband Services (EBS), 64, 184–91, 225–26, 228, 263, 318, 344, 353, 354, 355, 366, 369, 396, 399, 415–16, 419–20
bandwidth trading at, 110, 188, 243–44, 284, 286–87, 290
Christmas party of, 296–97
content delivery by, 188, 284, 287–88, 290–99, 315
firings and layoffs at, 331–32, 334–35
indictments against executives of, 411–12
investment vehicles of, 293
mergers-and-acquisitions team at, 288
performance of, 289–90, 295–96, 297, 315–16, 320, 331–32, 335, 338, 345, 369, 387
Project Backbone at, 289
Project Braveheart at, 293–98, 317–18, 368, 412
Rice at, 61, 171, 186, 213, 243, 287–92, 294, 298–99, 301, 332–33, 334–35
as Skilling’s pet project, 172, 184–88, 255–56, 262, 284–86, 288, 314, 315–16, 331–32, 338, 340, 349
valuations of, 299
venture capital at, 288
Enron Building, 377
Enron Capital and Trade Resources (ECT), 56–69, 85, 100, 101, 103, 118, 120–22, 124, 126, 131, 133, 138, 187, 241, 390
bonuses at, 64
financial-services industry as model for, 27, 33, 67
Enron Capital and Trade Resources (ECT) (cont.)
income statements of, 60
profits of, 56, 59–60, 61, 62, 67–68, 93
renaming of, 186
risk-control group at, 111, 115
as Skilling’s model for Enron, 105
“Enron CFO’s Partnership Had Millions in Profit,” 371
Enron Cogeneration, 73
Enron Communications, 188, 243
Enron Corporation, xxii, 1–2, 3, 8, 19, 79–83
accounting scandals of, see accounting; Arthur Andersen
all-employee meetings at, 229, 323, 352–53, 356
analyst-associate program at, 120, 122, 214–15, 334
analyst meetings of, 176, 179–80, 242–44, 284, 314, 320–21, 323, 345
Andersen’s risk assessment of, 147–48
annual reports of, xix, 19, 168, 238
assets of, 409
Audit and Compliance Committee at, 130, 407
balance sheet of, 77, 94–95, 150, 156, 157–58, 165, 310, 321, 325–26, 346, 363, 368, 384
bank loans of, 18–19
bankruptcy of, xxiv, xxv, 79, 91, 112, 129, 153, 158, 160, 172, 205, 241, 306, 401, 403–5, 406, 408–10, 413–14
BBB+ rating of, 238
as “black box,” 322, 323
capital investments in, 320
cash crisis at, 378–405
cash flow of, 108, 112, 133, 150, 157, 158–61, 230, 232, 237, 321, 323, 326, 331, 340, 349, 373, 378, 388, 400, 408
charitable donations of, 48, 96, 164, 165
Come to Jesus meeting at, 25–26, 27
corporate culture of, xxv, 25–26, 40, 116, 120–23, 140, 152, 187, 235, 240–41, 300, 332–33, 335, 372, 396–97, 401, 403
credit rating of, 154, 161
deal making prioritized at, 121–22
debt of, 150, 154, 156–57, 161, 232, 237, 321, 323, 379–80, 395, 399, 403, 408
deferred-compensation program at, 401
Dominion Energy joint venture of, 47–48
downfall of, 71, 91–92, 113, 132, 147, 277, 295
downgrading of, 102, 235, 348, 374–75, 394–95, 400, 401, 403
as dysfunctional workplace, 56, 63
earnings of, 91, 92, 93–94, 102, 109, 125–28, 132, 133, 134, 141–42,
229–30, 232, 321, 324–25, 331,
339–40, 342–43, 346, 349, 369, 382, 400
environmentally friendly image of, 174, 225
ethics and values of, 193, 269, 275, 310, 353
Finance Committee of, 199, 366
financial filings of, 41, 304, 320, 330–31, 371
financial reports and statements of, 15, 42, 155, 189, 230, 231, 321, 324, 329, 357, 368, 370
focus groups at, 372
fundamentals group at, 221
Gas Bank at, 35–37
growth of, 150–51, 179, 232
HNG-InterNorth as origin of, 10, 13–14,
33
Industrial Group at, 130
internal audit department at, 17, 19, 21,
41
investment banking fees of, 234
investor confidence destroyed in, 346
investor relations department of, 231, 322, 345, 360
jets of, xxii, 3, 4, 51, 53, 86, 90, 96, 122–23, 175, 251, 302, 338, 346, 353, 367, 401, 405
junk credit rating of, 14, 403
lawsuits against, xxi, 380, 382, 396, 410–11
legal department of, 18, 20, 276, 328,
405
liquid-fuels division of, 21
liquidity of, 391
lobbying by, 172, 173, 265
as logistics company, 322
London office of, 239
losses of, 306, 309, 410
market value of, 240
mottoes of, 326
myths and legends about, 35, 52, 172, 222
nepotism in, 4, 90
off-balance-sheet vehicles at, see off-balance-sheet vehicles
as overleveraged, 165
P&L at, 138
performance reviews at, 117–18, 123, 138, 152–53, 154, 224
Policy Committee at, 328
political contributions by, 87, 88
postbankruptcy, 155, 218, 409
PRC at, 63–64, 91, 121, 154, 215, 279, 335, 345, 372
preferred stock of, 156
profits of, 27, 44–45, 47, 60–61, 85, 92–94, 104–5, 108, 130–31, 133, 176, 179, 204, 230, 282, 295, 313, 384, 388,
403
proxy statements of, 237–38, 322, 328
public relations at, 262, 322, 326, 332, 339, 346, 352, 364, 371, 377, 384, 417
reputation of, 76
Research Group of, 192, 193
retirement accounts and employee stock holdings, 241–42, 401, 414
Risk Assessment and Control (RAC) at, 115–18, 129–30, 132, 141, 158, 181, 192–93, 195, 218, 220, 227, 246, 346, 373, 399
risk-management manual of, 132, 133
salaries and bonuses at, 138, 240–41,
397–98, 414; see also specific
individuals
SEC filings of, 324, 354, 357, 394, 399–400, 401–2
share buyback program at, 105
shareholders in, 53, 380, 407, 409–10, 414
skepticism toward, 321
skyscraper built by, 239, 367, 378
start-up mentality of, 372
stock of, xxv, 85, 92–94, 98, 99, 102, 105, 109, 125–27, 150, 154, 156, 176, 187, 191, 192, 195, 220, 223, 229–45, 263, 288, 302, 306, 309, 313–14, 318, 320, 322–27, 329, 334, 336–38, 340, 342–56, 363–64, 366–67, 370, 371–72, 374–75, 378, 38
0, 385, 389, 391, 394, 395, 397, 401–3, 407, 409–10, 412, 415, 416, 420–21
structured finance at, 149, 151
tax-avoidance schemes of, 128–29, 289
tax department at, 327
tilted E logo of, 174
trading at, 42, 43, 85, 125–26, 324,
330–31
transaction support at, 142
unkept promises of, 183
Washington public-affairs office of, 86
water business of, see Azurix
Enron Corporation board of directors, 68, 73, 124, 151, 220, 239, 277, 326, 366, 367
audit committee of, 41, 115
compensation committee of, 370
Fastow’s finance vehicles and, 168, 169, 197–99, 200–201, 305, 306–7, 324, 376, 380, 393
finance committee of, 198
Lay and, 96–99, 314, 344–45, 349–50, 402–4, 415–16
Mark and, 247, 253, 260–61
Skilling’s resignation and, 342–43, 347
Enron Corporation Bonus Plan, 404
Enron Development, 70, 73–76, 80
Enron Economic Development Corporation, 202
Enron Energy Services (EES), 171–72, 175–84, 189, 213, 228, 255, 262, 263, 265, 299–304, 314, 321, 339, 346, 359, 364, 388, 396, 398, 404, 414, 417, 430
bonus system at, 180
commodity contracts at, 178
energy management acquisitions of, 183
layoffs at, 346, 353, 358–59
losses at, 179, 300, 304, 333, 388, 416,
421
Potemkin Village of, 179–80, 242
RAC task force at, 301
risk management staff at, 181
total energy outsource contracts at, 178
trading desk at, 181, 300, 304
Enron Europe, 73, 75, 103, 209, 216, 239, 388
Enron Field, 86, 367
Enron Finance, 35, 55–56
Enron Gas Marketing, 34, 56, 60
Enron Gas Services, 354
Enron Global Finance, 133–34, 148, 150–52, 156, 158, 161, 163, 164, 166, 168, 170, 196, 198, 212, 229, 237, 239, 249, 304–5, 308–9, 316, 327, 330, 335, 355, 413
Enron Global Power and Pipelines (EPP), 94–95, 132, 138
Enron Industrial Markets, 355, 377
Enron Intelligent Network, 187–88, 242, 286, 290
Enron International (EI), 44, 76–84, 158, 246, 247, 248, 251, 258–63, 290, 315, 322, 326, 333, 354, 387, 396
balance sheet of, 77, 94–95
compensation and bonuses at, 78–79, 95, 111, 180
Dabhol project of, 79–83, 94, 102, 260, 315, 340, 342, 353, 366, 373, 399, 409
end of, 260–61
government financing for, 88–89
Shell’s negotiations with, 112
“snowballing” at, 77, 95
Enron Liquids Pipeline, 98
Enron Media Services, 226
Enron NetWorks, 211
Enron North America, 186, 193, 207, 213, 274, 275, 309, 333, 388, 413
Enron Oil, 15–25, 220
bonuses at, 16, 17, 19
corporate tax returns of, 24
fake companies set up by, see Ilsa; Petropol; Southwest
fraudulent accounting practices at, 21, 23
profit shifting at, 18, 19, 21, 24
scandal surrounding, 15, 47, 375
Enron Oil and Gas (EOG), 93–94, 101, 108, 109, 126, 245
public offering of, 94
spinoff of, 109–10
stock of, 219
Enron Online (EOL), 221–24, 244, 379–80, 398, 403
Enron Power, 52, 53, 73, 96
“Enron Prepares to Become Easier to Read” (Smith and Emshwiller), 360
Enron Prize for Distinguished Public Service, xxiv, 240
Enron Services Handbook, 271
Enron West Power trading desk, 266, 269, 271–76, 278–79, 282–83, 300, 309, 339
Enron Wholesale, 276, 299, 300, 303, 334–35, 339, 387–88, 405
Enron Xcelerator, 302, 334
EOG, see Enron Oil and Gas
EPP, see Enron Global Power and Pipelines
equity analysts, 237, 340
equity investors, 189–90, 365
equity markets, 150, 154
equity offerings, 235
ERNB (Enron’s Rhythms Net Bet), 194
Ernst & Young, 148
EterniTV, 343, 344
Euromoney, 140
Evans, Donald, 385
Everglades, 254
Export-Import Bank, 74, 88–89
Exxon, 1, 5, 6, 7, 241
ExxonMobil, xxv, 241
fair market values, 205
Fallon, Jim, xiv, 334–35, 337, 404
FAS 125, 293
FAS 140, 157
Fastow, Andrew, xiii, xxiii, xxiv, 122, 131, 133–41, 143, 152, 156, 214, 227, 237, 264, 334, 335, 343, 347, 355, 357–58, 390, 425, 428
Azurix deal of, see Marlin
background and education of, 134
Baxter’s concerns about, 152, 163, 333, 356, 408
children of, 139, 170
complex deals of, 133, 151, 155–56, 192, 383
COO aspirations of, 353, 359
deals of, 230, 251
early career of, 136
earnings and wealth of, 138, 165, 169–70, 201, 212, 313, 328, 362, 365–66, 376, 381, 414
on EES board, 184
EES financing and, 175–76, 182
as Enron CFO, 136, 140–41, 143, 150–56, 189–90, 198, 200, 209, 311, 322–23, 329–30, 345, 353, 357, 360–62, 373–74, 379, 384–85
Enron’s dependence on, 189
equity offering proposed by, 150
financial structures and deals created by, 141, 229
firing as CFO of, 377–78, 380–81, 387,
391
Fortune interview with, 322
as head of corporate development, 328–29, 354
homes of, 294, 354, 365
indictments of, 411–12
insecurity of, 139
interpersonal skills of, 138
investment banks and, 163–64, 165
JEDI and, 67
LJM consequences for, 371–77
LJM sale of, 329–30, 353, 360
performance reviews of, 138
personal investments of, 165–70
personality of, 139–40
private equity funds of, see LJM
Project Raptor and, see Project Raptor
in retail-energy business, 138–39, 172
Rhythms deal and, 191–97
risk-control alien to, 140
SEC investigation and, 371–72
self-compensation schemes of, 134
Southampton scheme of, see Southampton Place partnership
structured finance deals of, see Special purpose entities
Wall Street Journal article and, 370–71
Fastow, Carl, 134
Fastow, Jeffrey, 139, 189, 365, 380
Fastow, Joan, 134
Fastow, Lea, xiv, 134–35, 152, 166, 168, 334, 361, 377, 380, 414–15
at Enron, 137, 139
on Enron art committee, 365
government charges against, 412
as heiress, 138, 365
and SPEs, 167, 170, 189
Fastow, Matthew, 189, 365, 380
Fastow, Peter, 364, 365, 371
Fastow Family Foundation, 170, 196, 206, 365
Fat Boy, 269, 274, 276, 335
FBI, xxi, 5, 408, 418, 422
Federal Energy Regulatory Commission (FERC), 167, 223–24, 270, 271, 273–74, 276–80, 335
Federal Power Commission, 6
Fergus, Gary, 275–76
Fewell, Melanie, 301–2
Feygin, Anatol, xvi, 341
fiber-optic system, 185, 187–88, 288
Fidelity, 319, 340
Fifth Amendment, xxiii, 416
Financial Accounting Standards Board (FASB), 142, 144, 323
First Boston, see Credit Suisse First Boston
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br /> First Call, 231
First City National Bank, 30, 73
FirstPoint Communications, 185
First United Methodist Church, 385, 423
First Union, 202, 343
Fitch, 238, 323, 380, 394, 403
Fleischer, David, xvi, 179, 229, 243, 259, 314, 323, 325, 375
Florida, 254
as major market, 10, 11
Florida Gas Company, 6–8, 10, 11, 19, 25, 46
Fluckiger, Kellan, 278
Forbes, 32, 72, 83, 94, 98, 234
Fortune, xxiv, 83, 94, 105, 111, 116, 239, 253, 278, 291, 321–23, 332
50 Most Powerful Women in Business, 253
Fortune 500, 137, 326
forwards, 37
Foster, Joe, 402–3
Fountainhead, The (Rand), 214
France, 248–49, 256
fraud, 276, 410–20, 422
Freeman, Charles, 388
Freeman, David, 281
free market, 2, 3, 48, 74, 89, 167, 172, 216, 264, 267
freight trading, 225, 396
FRENDS, 136–37
Frevert, Mark, xiv, 359, 361–62, 391
Fried Frank Harris Shriver & Jacobson, 329
Friends of Enron, 166, 167, 189, 364
front-end loaded earnings, 230
Frontline, 281, 428
fuel-supply contracts, 158
Furst, Robert, xvii, 200, 207–8, 381
GAAP (general accepted accounting principles), 142–43, 160, 161, 163, 408
Garcia, Kim, 180
Garten, Jeffrey, 83
gas, 50, 131, 172, 177, 178, 240
see also natural gas
Gas Bank, 33–37, 137, 212
Gas Daily, 227
Gates, Bill, 230
Gathmann, Bill, 152
Gaza Strip, 258
GE Capital, 180
General Electric, 46, 53, 67, 74, 81, 132, 133, 230, 314
George (robotrader), 216–17
Gerstner, Lou, 31, 32
Get Shorty, 270, 274, 282
Gibney, Alex, 426
Gieselman, Scott, xvii, 378–79, 387
Giga information group, 244
Glass-Steagall Act, 162
Glisan, Ben, xiv, 152–53, 156, 159, 161, 168, 169, 212, 237, 260, 279, 304–7, 315, 340, 346, 366, 371, 375, 377, 388, 394, 400, 412, 413–14, 420–21
as Fastow confidant, 152, 154
LJM and, 196–97, 198, 211, 306, 307, 309, 311, 364, 412
performance review of, 154
Global Crossing, 188
Global Finance, see Enron Global Finance
Global Galactic agreement, 205
Global Water Reporter, 247
Goldman Sachs, 50, 109, 126, 164, 179, 222, 229, 234, 243, 259, 314, 321, 323, 325, 375, 378–79, 387, 401, 427
Goldman family, 417
Gorbachev, Mikhail, 240
Gordon, Rick, xvii, 234–35, 313
Gore, Al, 88
grain futures, 226
Gramm, Phil, 87, 96, 280
Gramm, Wendy, xiv, 96, 280
The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron Page 72
