In 1985 two of the largest natural gas companies in the United States merged together to form what, in 1986, became known as Enron Corporation. InterNorth, a gas pipeline company out of Omaha, Nebraska, and Houston Natural Gas of Texas joined together to form the largest natural gas company in the United States. The newly formed Enron had roughly 37,000 miles of natural gas pipeline throughout the mid-west and into Texas. The new company, which was centered in Houston, named Kenneth Lay the chief executive officer and began to expand rapidly.

With Lay at the helm Enron began the transformation from a local gas pipeline company into the largest marketer of natural gas in North America and the United Kingdom. They began trading natural gas commodities in 1989 as well as electricity in 199

In November of 2001 Enron admitted to having misrepresented the previous five years of financial statements. The immense growth in profits that had been reported since 1997 had actually been a $586 million loss, most of which had been hidden from the books by the partnerships that Andrew Fastow had created. The company began crashing around itself as it announced a $690 million dept due by the end of November. In the beginning of the year the price per share of stock was listed at $83; as November came to a close it had dipped below $1. Not long after the beginning of December the company was forced to file for Chapter 11 bankruptcy protection. With assets totaling more than $63 billion this was by far the largest bankruptcy in United States history.

In wake of this disaster Congress passed new legislation concerning “generally accepted accounting principles,” and 401k retirement funds. Enron is still in business and trying to recover from these horrendous events that will forever scar not only them but also all of the investors and employees wh

Some topics in this essay:
Andrew Fastow, Oregon Enron’s, Anderson Enron’s, United Kingdom, Enron Corporation, Gas Texas, CFO November, CEO Lay, Kenneth Lay, Lay CEO, natural gas, andrew fastow, gas pipeline, 2001 enron, shortly thereafter, gas pipeline company, file chapter, chapter 11, 11 bankruptcy, lay stepped, pipeline company, file chapter 11, largest natural gas, 11 bankruptcy protection, chapter 11 bankruptcy,