Enron

Enron is formed

Jan 1, 1985

On this day, Ken Lay forms the Enron Corporation. (No date specified except for 1985)

Deregulation

Jan 1, 1990

Ken Lay helps to deregulate the natural gas industry. (Early 1990's)

Rise in stocks

Jan 1, 1990

From 1990 to 1998
Enron’s stock rose by 311%

Largest seller of natural gas

Jan 1, 1992

Enron rise to be the largest seller of natural gas in North America. (No date specified except for 1992)

1999

Jan 1, 1999

Enron stock rose by 56%, rest of stock market only went up by 20%

2000

Jan 1, 2000

Enron's stock rose by 87%, rest of market went down by 10%Top executives began to sell their stocks

Stock Price & Market Capitalisation

Dec 31, 2000

Enron’s stock price was $83 and its market capitalisation was $60 billion.

Early 2001

Jan 1, 2001

Enron Is at its peak. Stocks were trading at $80-$90 a share and reported revenues of $50 billion.

Bethany McLean

Mar 5, 2001

Bethany McLean in Fortune Magazine questioned how Enron could maintain such a high stock value. She pointed out that analysts and investors did not know how Enron was earning its income. McLean

Cracks Appear

Apr 17, 2001

The first real cracks in Enrons public image emerge. Skilling verbally attacked a Wall Street analyst Richard Gruben who questioned Enrons unusual accounting practises during a conference call. Gruben said Enron was the only company that could not prove its earnings. Skilling replied “Well thank you very much, we appreciate that…Asshole.”

August 2001

Aug 1, 2001

One analyst stated, “It’s really hard for analysts to determine if Enron is making money or losing money.”

Skilling Resigns

Aug 14, 2001

Skilling resigns as CEO of Enron. Skilling cited personal reasons for leaving.

Sherryn Watkins

Aug 18, 2001

Sherryn Watkins, Vice President for corporate development, sent an anonymous letter to Ken by warning him about the company’s accounting practises

Lay & Watkins meet

Aug 22, 2001

Watkins and Lay meet individually to discuss Enron’s accounting issues.

The SEC

Oct 1, 2001

The SEC (Security and Exchange Commission) announces its investigating suspicious deals characterising them as some of the most unusual transactions they’ve ever seen. (No date specified except October 2001)

Arthur Andersen

Oct 23, 2001

Enron’s auditor Arthur Andersen shreds 1 tonne of Enrons files. Enron around this time attempted to re-ensure investors that Enrons financial & accounting manoeuvres had been fully scrutinised by Arthur Andersen.

Andy Fastow Replaced

Oct 25, 2001

Andy Fastow is replaced as Chief Financial Officer

Bankruptcy

Dec 2, 2001

Enron declares bankruptcy

License Surrendered

Aug 31, 2002

Arthur Anderson surrenders its license.

Trials

Jan 1, 2006

Jeffery Skilling and Ken Lay go on trial.

R.I.P Ken

Jul 5, 2006

Ken Lay dies

Skilling Convicted

Oct 23, 2006

Skilling is convicted of 19 counts of fraud. He was sentenced to 24 years and 4 months imprisonment.