Enron Scandal Reaction - 1483 Words

Jean F. Baylon BSBA4 – Marketing Management Corp.Gov. – Assignment The documentary film, Enron: The Smartest Guys in the Room It is a story about the greed in corporate America that is always exposed after the fact. The film examines the 2001 collapse of Enron. At the time of the collapse, Enron was the largest bankruptcy in history. The Enron story is one of money and politics, which are two areas that embody the culture of big business in America. The film does a great job of illustrating the laissez-faire culture that allowed Enron to rise to prominence while simultaneously exposing the rabid fraud behind the faà §ade of success. Along with the rise and fall of the Enron stock price, one of the consistent themes of the film is the†¦show more content†¦He was the first of the main corporate executives to be arrested. Fasto’s story is wrought with conflicts of interest and fraud. Of all the executives tied to the Enron scandal Fasto appears to have shown the least amount of resistance during the government investigation. Although the documentary does not spend a great deal of time on Lou P ai, history is not unique in corporate America. Pai’s role in the company as the head of Enron Energy Services gave him the title of the invisible CEO. The film focuses on some of Pai’s personal life, in that he enjoyed strippers and spending vast amounts of money at strip clubs. What is most interesting about Pai is that he resigned from his position with$250 million in personal earnings and he did so well before Enron collapse. The shame in his story is that those shareholders that lost out can never recoup the money he earned. At the time of his departure there was no way to truly investigate his motivations and thus, of all the executives he has been mostly unharmed by the collapse. The most disturbing part of the film is the California electricity crisis. Enron’s role in the crisis is distinguishing but it also shows just how out of touch the Enron executives and employees were with reality. A major part of the crises was Enron’s push for deregulatio n, which eventually allowed Enron to control the California energy market. AShow MoreRelatedEnron And The Enron Scandal847 Words   |  4 PagesThe Enron scandal, discovered in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based mostly in Houston, Texas, and also the dissolution of Arthur Andersen, that was one amongst the 5 largest audit and accounting partnerships within the world. 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