February 8th--Class 5

February 8th--Class 5 - 15/02/201121:58:00...

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15/02/2011 21:58:00 Smartest guys in the room Cliff Baxter kills himself good friend of Jeff Skilling, former president of Enron Enron was nations 7 th  largest corporation The big guys at Enron got paid out by selling stock before collapse of Enron Kenny Boy he came from humble roots preacher’s son George Bush ensured deregulation and subsidies for Enron he was close to Ken Lay 1987 - two oil traders bet on price of oil’s direction - falsified bank records, recorded profits that didn’t exist - but when discovered, nothing happened - Lay encouraged his traders to gamble as much as they were - similar traders had gambled away all of enrons reserves - muckelroy saved the company by bluffing the market Jeff Skilling decided to innovate on a way to change energy market They created a virtual stock market for energy
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The execs got “mark to Market” accounting allowed for their accounting Allowed enron to book profits as soon as a deal was signed but before revenues were  accrued very subjective method open to manipulation Skillin was a nerd, then remade himself Cliff Baxter was a great dealmaker But he was manic depressive
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This note was uploaded on 05/05/2011 for the course COMM 310 at USC.

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February 8th--Class 5 - 15/02/201121:58:00...

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