Chief President Of Corporate Development Essay
In August of 2001, the company reached its 100 billion dollars in revenue. At the same time the CEO, Jeff Skilling, unexpectedly resigned and cashed in nearly 60 million dollars’ worth in Enron shares. The resign resulted in Wall Street questioning if Enron was actually steadily improving and becoming more successful.
Common knowledge is that Skilling used Andy Fastow, the CFO, to create the Special Purpose Entities in order to offload the bad debts and bad assets to make the appearance that Enron was sounder than they actually were. Simultaneously, as Skilling steps out and the company continues to offload their debt, Kenneth Lay takes the front seat as Enron’s stock begins to plummet. Over the course of its plummet, it goes as low as 28 cents a share. At this pivotal time, the company reports a 3Q loss of 318 million. This combination of the perfect storm triggers the investigation from the SEC.
In November 2001, they admitted to cooking its books to by 2.1 billion. And in December 2001, Enron files for…