[Author’s Name]
[Institution’s Name]
Essay on History of Enron
In November 2001 the world witnessed the world’s largest securities scandal in the financial history that forced Enron to file request for bankruptcy in December 2001. Financial dilemma starts in 1930 when Northern Natural Gas Company was established as a syndicate of three major organizations, Northern American Power and Light Company, Lone Star Gas Company and United Lights and Railways Corporation. Gradually the company became a public company by 1947 and by 1979 the company was reengineered with a fresh name of InterNorth Inc based in Omaha. By 1980 the insider trading was being practiced in Enron.
The affairs of the company continued for almost four decades when another gas company called Houston Natural gas was acquired by the InterNorth in 1985.Houston Natural gas was headed by Kenneth Lay as its CEO who appeared as CEO of the new large organization [Enron Debacle]. The organization was renamed as Enron Corporation. Enron in the beginning was committed in transmitting and distribution of Gas and Electricity in America. Heavy structural development, construction and operation of power plants and pipe lines in other parts of the world were also undertaken by this company. By 1986 Enron was having pipeline of 37000 miles on its inventory but heavy debt had started building up.
The insider trading that had gripped its roots in 80’s was first time noticed in an audit report in 1987 when David Woytek and John Beard discovered that Millions of dollars of Enron were transferred to the personal accounts of two senior management executives Louise Borget and Thomas Mastroeni.
No lessons from such irregularities were learnt by the management of Enron and the illegal financial activities continued. In the meanwhile Richard Kinder who had worked with Kenneth Lay in a previous organization managed to become President of Enron. He took such steps that reduced the debt of Enron quite considerably......
