Conspiracy of Fools VBK - SI Universidad Iberoamericana...

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SI Universidad Iberoamericana UNIBE Bba in International Business Financial Statement Analysis Professor Shindell Conspiracy of Fools Valerie Bodden Kluge (10-0014) June 14, 2011 Santo Domingo, Dominican Republic
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Bodden #2 Conspiracy of Fools Enron started off as one of the world’s leading corporations for electricity and energy, and soon, it expanded to become one of the leading enterprises in not just electricity, but internet, natural gas, communications, and even pulp paper products, having been named America’s most innovative company for six years in a row. However, behind its billion dollar revenues lay deception and deceit, maintained by creatively structured schemes and faked special purpose entities, and financial loopholes that allowed the perpetrators to amass billions of dollars for themselves while they left their company to rot with their lost profits. Eventually, Enron imploded, taking with its founders and leaders, and leaving behind a gaping hole in California’s energy grid. Conspiracy of Fools, by Kurt Eichenwald, accurately depicts unprofessionalism, holier than thou attitudes that the Enron executives once boasted about, which in turned revealed them as hear, speak, see no evil types of people that dozed off their way to the top, with their executives, notably Kenneth Lay, never questioning nor challenging Fastow and Skilling’s actions. It uses the perfect diction and a strong appeal to the readers logos in order to correctly and easily explain what occurred in this billion dollar enterprise that lead to its downfall.
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Bodden #3 Fastow himself is portrayed in this story like a corporate dictator, executing his subordinates if they failed to provide him with the adequate services. On one occasion, analysts of Merryll Lynch and Salomon Smith Barney had given Enron unfavorable ratings, failing to see what the excitement about the company was all about; Fastow cut both banks out of a profitable deal, stating that their “decision here is intended to send you guys a message about how viscerally we feel,” though the message might as well have read “You have failed me for the last time.” Though three billion dollars did come out of Enron’s gas pipelines, its one true business. But the rest of the corporation’s revenues were all faked; yet
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Conspiracy of Fools VBK - SI Universidad Iberoamericana...

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