these are wandering through investor’s heads who invested their money in this company.

Enron staff and other investors invested retirement money into this company and now it is all gone. One moment they are riding high thinking they can retire then the next moment Enron is worth nothing leaving them with nothing. Business Week makes a good point towards the market: “The good news is that, under investor pressure, dozens of corporations are now scrambling to restate their earnings and make their balance sheets more transparent. The bad news is that the investor revolt could turn into a stock market rout and the growing strains on credit could produce a serious banking crisis” (116). Enron is a good example for all the companies to make sure that they keep neat and clean accounting records.

Kenneth Lay, the former Enron chairman, resigned a few months before the collapse received about $200 million in salary, stock and other compensation from Enron. He enjoyed privileges such as a $7.5 million revolving credit line Enron extended him, which he reportedly used and repaid with Enron stock fifteen times (Eric Roston , “The Enron Players” 20). “Sherron Watkins, Enron’s vice president, learned Enron was losing money on two equity investments: network equipment supplier Avici lost 98% of its value, and another, New Power and energy retailer that had Ken Lay on the board, dropped more than 80%. Because both firms were backed by Enron stock, she knew their downfall was dragging down Enron too” (Time Jan 2002 19). Watkins sent a brief letter to Lay warning him

Some topics in this essay:
Federal Reserve, Business Week, Grisham” Feb, Ken Lay, Texas Enron, Kenneth Lay, Corporation Morals, Watkins Enron’s, Enron Enron, Enron Players”, enron executives, america 4, business ethics, jan 2002 19, annual report, 2002 19, telling truth, accounting firms, money company, enron’s collapse, accounting profession,