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Throughout the following days, articles in The Wall Street Journal attempted to explain justwhat was going on.9
Starting on October 18, 2001, the price of Enron stock began dropping sharply. By the timeinvestors services, like Moody´s began cutting Enron’s ratings, common stock had already fellto a seven-year low of $13.95.On November 8, 2001Enron filed documents with the SEC revising its financial statements forthe past five years to account for losses and reducing their stockholder’s equity. Finally, on December 2, 2001 Enron filed for Bankruptcy, and sued Dynegy Energy Companyfor pulling out of a deal to buy Enron.January 29, 2002 - Enron Corp. chose Stephen L. Cooper, 55, to take over as new ChiefExecutive Officer.Cooper, a corporate turnaround specialist is a man known for fixingbankrupt companies by using humor and brutal honesty to reach agreements with contentiouscreditors.Enron also promoted Jeff McMahon, chief financial officer, to chief operating officer, andnamed former treasurer Ray Bowen as CFO. Mr. Bowen and Mr. McMahon will join Mr.Cooper in a newly created office of the chief executive. Mr. McMahon, who was only namedCFO last autumn following the departure of former CFO Andrew Fastow, is believed to havebeen one of the chief critics of Enron's questionable accounting practices.Cooper said the team would immediately start working with Enron’s current management andthe creditors’ committee on the company’s efforts to emerge from bankruptcy.“Our focus is on the future of Enron”Cooper said in a statement. “We will work closely withthe board of directors, management and the creditors committee to develop a reorganizationplan to maximize value for the company’s stakeholders.”The General Services Administration has suspended Enron Corp., related Enron corporateentities, several former Enron officials, Arthur Andersen, LLP, and a former Andersen official,from conducting new business with the Federal government.The names of contractors debarred, suspended, proposed for debarment, or declared ineligibleby any agency of the Federal Government. The suspension is effective throughout theexecutive branch of the Federal Government and applies to all new business with the Federalgovernment. The suspended entities and individuals are: Enron Corp. Arthur Andersen, LLP Enron North America Corp. Portland General Electric Company Williard, Inc. Enron Energy Services Operations, Inc. Clinton Energy Management Services, Inc. Enron Energy Services, Inc. The Bentley Company Richard B. Buy, former Enron Senior Vice President and Chief Risk Officer 10
Richard A. Causey, former Enron Senior Vice President and Chief Accounting Officer David B. Duncan, Arthur Andersen's Chief Auditor for the Enron engagement Andrew S. Fastow, former Enron Chief Financial Officer Ben F. Glisan, Jr., former Enron Treasurer Michael J. Kopper, former Managing Director of Enron's Global Equity Markets Group Kenneth L. Lay, former Enron President, Chief Executive Officer, and Chairman of theBoard Jeffrey K. Skilling, former Enron President, Chief Executive Officer, and Chief Operating