The Crooked E - The Unshredded Truth About Enron (2003)

on December 3rd 2001 the largest bankruptcy to that date in United States history was filed 10,000 people lost their jobs many more lost their retirement and life savings in total 25 billion dollars was lost this is that story out of the CEO or the CFO out of the board directors but of the real people people on the front lines people like me America wasn't settled America was conquered those pointy-headed teaches yours are dead right about that brave tough men came down here to Texas they drove out to Comanche and drove out the Mexican they fought the wolf and the weather and the limestone they made this country their own right the hell they wanted the godforsaken place I'll never understand but they wanted it so they took hey mr. Fleury if he is our you serve good food growing up in Houston my life was about Star Wars and Saturday morning cartoons comic books and superheroes all our epic battles between good and evil this is America life liberty and the pursuit of happiness you see something worth taking you just take it Brian are you and mr. blue discussing so seriously over here America it's a good day for that come on let's go see what's cooking on the barbecue so uh I heard you're leaving Texaco after all these years what the heck are you thinking I'm thinking I want to be rich daddy boy I filled a stinking rich there's never been a better time than now thank you very much Reagan in the White House tax cuts deregulation there's only one rule these days old buddy there are no rules no rules no limits I knew right then what I wanted got room brah come on fireworks you're starting Bernie beggars you get over here right this is my story my own personal battle between good needle probably about 85 degrees with humidity in the upper 70 percent range Hills got a special cast in the studio with it but you got with you bill well thanks Robert we got Miss Debbie Watson you're out of Katy Texas she's do thou built so you're back modern bride my mom got us a subscription oh my god what it's here Oh four years of college and three years of Business School hundreds of books and thousands of hours and it all comes down to this I just want you to be happy Bryan are you sure this is what you really want wherever I go sing me honey hey get it to go keeps turning man he honey you really free good morning but I'll be we want you friend money money money money money money moneymoney whoa Andhra Knights its mystery here on ETV with more Enron news of note last week Wall Street analysts were singing the praises of the mighty E and our latest earnings which put us on pace to realize this downing 240 billion in revenues this year I'll make Enron number one in the fortune 500 incredible welcome to Enron y'all I'm amber st. Pierre your personal personnel representative congratulations you are now part of America's seventh largest company and its finest in 1985 to natural gas companies merged to form and one creating a pipeline system that touches every corner of these continental united states after conquering America and Ron went global established in power plants over in England India China the Philippines and South America but everyone is about more than just energies we're innovators creating commoditizing new markets in water was like finding out you're gonna play center field for the Yankees these guys they were the best of the best in fact these virtual assets now account for 80 percent of our total business virtual assets what she's talking about to ensure our financial integrity Arthur Andersen auditors work right here in the towers available for guidance whenever the need arises now let's meet the man most responsible for making Enron what it has become and Enron we believe in rice respect integrity communication exits and honor the company that deals with everyone with absolute honesty and fairness we play by all rules we stand by our word we want our clients to leave an Enron transaction believing in our integrity and people Andrew Tillman Harvard undergrad first in her class at the University of Texas Business School and now he and I are equals Jeff Skilling the man at the forefront of Enron's success every year every week every day we have to come up with new ideas what it ultimately comes down to is our customers customers who view us as a unique resource customers were counting on us to make their lives better as company we deal with absolute integrity we play by the rules stand by our word that's the Enron way already now let's talk about employee stock options and bonuses loup-garou Burnie bickers my best friend when I was a kid all the way through business school now working on Wall Street as an energy analyst party I just got done with a neuron orientation ah dr. nation they call to the crookedy have little advice do do not take the brown acid all right tell me is that everything feel our desire or what it's unbelievable yeah better than I ever imagined left arm straight excuse me sir hi I'm looking for the division manager here can you uh tell me where Greg mcleaney is you found him oh oh hey you must be Culver cruller Brian Cooper yeah welcome to bankruptcy thank you the latest in Enron it's never-ending attempt to take care of the universe you I mean working on team J anna-marie sorry I grabbed that thanks oh this is anamarie by the way she's um sorry what do they call you people now administrative assistant great too translation secretary right yeah Murray's been within around for years but she's leaving in the fall to start college full-time great good for you hi I'm Ron this is Welling head of the division my boss you never speak to him I told your concern fantasy is the rest of the team yet Lazzari he's an originator he lines up the customer but don't give me I'll get back to you later later we'll all be dead right that's what you're having me doing you're not and then you got Duffy right there okay he's your traitor after you and those are in line up the customers it's up to Duffy to close the deal and we've got Liz Perry she handles the team's public relations we have our own PR person at Enron perception is everything hey everybody guys hey guys hey this is Brian jr. Bob he's gonna be working with us as of today look there there's still a little peeved the the team is supposed to have input on all new hires and I got the name work now they wanted some Harvard guy Andrew Tillman and but you know now you're here so don't worry about it Oh April Fool's Day I got it sorry welcome aboard color we'll ask her she's like okay hey honey ah the conquering hero returns how was your first day no idea how the business works I have no idea what I'm gonna be doing all my co-workers hate me my boss told me I was hired by mistake very funny April Fool's right chairman Lane met with Bush officially important issue of deregulation of the energy market continuing Enron's history of pitch it in to assist our nation's leaders and Ron is proud of its many contributions to our Congress our governors and most of all our president even lending mr. Bush our corporate jet when he needed it most keep flying high mr. president so like a lot of divisions here we are marketing something that nobody ever thought they needed before bankruptcy protection so let's say yeah let's say you own a factory alright you're making cups perfect paper cups Kreuger cups now your small operation you employ about a hundred people you're doing just about okay when you get a call from Lazzari coffee company makers of the finest coffee in the world hmm mmm-hmm now the sari tells you that he is opening up a national chain of coffee houses and he wants you to be as exclusive cups of five that's great news right when you just increase your business tenfold so you convert your factory to make only Lazzari cups you open six more factories you hire 2,000 new workers you buy that 16 million dollar penthouse overlooking Central Park life is good until one day you pick up the paper can you read lazarey coffee is contaminated with toxic waste well within a week Azari closes 2000 branches in the clearest bankruptcy leaving you with 20 million dollars in debt in six warehouses full of useless Lazzari coffee cups cruller cups is dead ouch but that's where Enron comes in Krissy for an annual fee andronik we used to insure a business against the bankruptcy of its major customers suppliers debtors so that if they go under the insured won't have to any questions just one what happens if Enron goes bankrupt get out of here go make some money let's go make some money that was easier for some than others hi Bryan crew from enric the absolutely just tell him I'm calling him with the deals I gotta get him his next promotion hey glad to hear you hiya brawly kids good yeah let me just notice not telemark all right that's what I'm talking to the boat that is why you're good when oil is gone friend like I like to just go with you me I'll get back here later no later we'll all be get okay excellent then I can just go over to look I'll get my people your people will do this will I study I understand okay okay you're rich man I am The King six deals in play and it's not even 11:00 yet it's almost too easy how's lunch with your mom terrific all we talked about was the wedding she's told her confidence wanting something small and she's family it a few friends right I was thinking since my dad just retired since my parents are still putting Jenson from school you're really nice if we could pay for the wedding ourselves what do you think sounds great and in national news Enron Chairman Ken Lay met with Vice President Cheney to discuss the energy crisis in California chairman lai serves on President Bush's energy advisory team after having raised more than one hundred thousand dollars with the president's campaign best I think you should take a look at this really okay well thanks anyway River that's gone oh great good to hear this in our personnel called they just want some information for your peer review okay tells peer review through C twice a year every employee is evaluated by his coworkers now end up in the bottom 15% will you automatically get redeployed don't ask lunch I'm thinking Italian I'm in sorry sorry you never come salut sorry what's okay huh I don't know if you remember me sure you take rumors kit that Brian isn't it yeah last I heard about you you were at the business school at UT yeah yeah but I'm here now well apparently what do you think so far sir it's the president of Guatemala laughs tell him I'll call him back Ron I'm all in their damn blackouts one of these days we're just gonna cut him off I'm gonna have somebody from my office call you but we'll get together right oh I love that thanks a lot all right good to see you yeah wait hold on we'll just be a minute Coover and runs the Wild West it's steep space it's a tune to the bottom of the ocean there are no limits at anything none except a limit you place on yourself crew just how far you wanted to go my father used to say mr. blue is a man and we get things done no matter what the job no matter what the cost they take no prisoners and you give no ground and that was the end one way and I decided right then that was gonna be my way - yeah it's Brian crude we're calling from Enron mm-hmm yeah tell him I'm calling with the deal it's gonna hurt him his next promotion that's right exactly why I brought that up I mean you got a jump on it when he gets out there look don't you see IIM the one feels like real for war or do you want to go from here all right that's what I'm talking about yeah great exactly every day I was getting red rocket a results I was more confident aggressive I was bold they called it become an Enron eyes and I liked it take these to well exactly hey it's Frank uber again yeah you know what they say if you snooze you lose I wanna go to Y button grunt I'm gonna send some stuff over me that's right you do that right now wants to grab a bite I will sorry you coming over yeah absolutely come on drive uh what's Udrih so Coover you like sushi yeah I love sushi why did I say that I can't stay in sushi last time we ate at this place Andy fast I was at the table next to us great did I throw up on someone and over management to unlimited expense accounts okay yeah three of us spent 500 bucks here last time so Brian how is it that you know mr. blue well that explains the invite I was not giving him the satisfaction of knowing he was just a friend of my dad uh he took an interest in uh in a paper I did and business school and look me up he's actually the one that recruited me to Enron huh so uh what about you guys wouldn't what's your stories me I've been at Enron for six months I started out in broadband and then I heard about this new division and I transferred in from other derivatives no I'm not in Ron I mean real life oh oh well I I'm married I have two kids we relocated from 12 years in San Francisco and Oh disclosed in a house last week we bought a house two in Sugar Land really found it just after the wedding oh you just got married I'm engaged Oh I have the greatest wedding coordinator for you she got us into the Fort Garry with 400 guests including a ton a pepper management all for less than 60,000 what about mcleaney mcleaney he's a good guy he's married he's got four kids I spent at Enron for ten years but he's just never really been on the fast track he's always heading off for a little league or soccer or peewee hockey and not exactly career builders what about was Ari what's he what's his life like what life Lazzara eats breathes and dreamed Enron we've been inviting him to lunch every day since we started and he is yet to come as far as I can tell he lives it in that guy's got a real future so that was it Enron opened the door to the best of everything but only if you were willing to give it your all you were gonna love this - oh here comes this is the best sushi in all of Texas perfect hmm yeah try that one Lubbock and melon rolls shark much pushed off I was worried I was working mmm poor baby must be starved let me heat you up some chili have you been drinking listen beautiful I've been thinking what do you say we hire us a wedding coordinator a wedding coordinator yes ma'am how can we afford that cuz we got to eat Zaria new clothes 45 45 it's Oh wolf guys hit up this August coming this way whoa hey sweetie Fang she was in Playboy how some of the guys put together a fantasy woman of Enron issue they put 12 hottest women gave him each throwing money hi what's that she's August because it's the sweatiest Enron has a history of making certain hires based exclusively on looks which would explain all of the extra pers around here next refers come on straight from the stage the polls are still warm look around you hmm there are more flotation devices here than 747 Houston is the birthplace for the breast implant you know real Silicon Valley yeah I'm sure they're highly qualified right yeah highly qualified good Luke ooh trigger yeah we have someone in Courtney on line one right hey people mr. wehling has requested you close any pending deals no later than Friday at five's they can count toward second quarter earnings all right second quarter earnings huh yeah in second quarter bonuses since this is Wellings baby his bonus is based on every deal we make shut your mouth at Enron if you play your cards right you can leave the table with a lot of chips let me show you something Annmarie where's the rest file it's right up there Liz ken ricin and our broadband division got stock options of more than 76 million dollars have you got the white file Tom white he scored 14 million options in addition to his five million salary President Bush called asked for some advice and made him Secretary of the army Richard buys so on to the tune of ten point six million did Kazi cashed out at 13 million in Rebecca mark made her mark at 82 million whoa and the biggest run of all hi hi he headed up Enron energy services so a lot of long-term contracts that he pocketed a cool two hundred and seventy million dollars you had to be kidding me I'm not you're the very first call I've gotten since my promotion well temporary promotion until miss Roe returns from maternity leave anyway how can I help you it's not how you can help me it's how I can help you mr. Fleming but call me Alan okay Alan let me tell you little bit about what we're offering here we're heading up a bankruptcy risk management plan see if walderson industries ever goes down we're there to catch you we're kind of like a financial safety net what you think well I think it's brilliant but there's no way I can do it see I'm only here temporarily and I don't want to make any radical decisions and we're talking about a lot of money look I realize you're new okay how much money are we talking about here well for how long 10 year 10 year period 50 million a 50 million dollar hedge something off max anyway stop stop Alan don't let this opportunity pass you by bud yeah yeah I'm here take a look around you right now tell me what you see a desk desk not just any desk Allen that is a desk you deserve to be behind what happens when miss Rand comes back from attorney leave bro whatever the fact is you're back in the cubicle bro unless you do something boom unless you do something exciting something brilliant you think Enron got to be the big dog by laying skilling sitting around going I don't know it's it's a little too risky for us no they eat risk for breakfast and they crap out monster earning by lots of telly Allen you do this for your company do this for your shareholders huh don't for yourself man there's no limits except the ones you put on yourself you close this deal it'll be the biggest winner divisions done yet I mean on Friday as of signaling my newfound success mr. blue-collar invited me up for a drink on the 50th floor I'm clearly moving up in the world hi Brian uber oh uh mr. Boozman temporarily held up but he asked if you'd wait for him in his office right this was it the Enron tree it was all within my grasp photos of his yacht his Maserati a hard hat from his days in the field it was if the future was right there in front of me ready for the taking mr. Krueger yes miss June I mean yes ma'am mr. blue called he apologizes but he's been detained indefinitely oh I don't need to reschedule okay thank you I'll see myself out uh mr. Krueger Oh can I it's car I'm sorry I don't know what could be keeping him he's usually very punctual oh my god there you go thank you sir sorry whose car is that mr. Marcus how are you this pair speaks very highly of you one of the many Enron weddings I've done everything always the best are you insane you bought that car the same model dwelling drives you're sort of missing my point Brian first you want to get married in the Taj Mahal and now you buy a car that costs how much does that car cost how can we possibly afford all of this the Ballroom is big enough for 400 guests a dance floor and a five-piece band um actually we were sort of thinking of something a little less ignored Arnie will you excuse us for just a second certainly thank you listen Enron owes billions all right you know see anybody worried this place is perfect here is chairman of the board kenneth lay to share quarterly results with the Enron staff shareholders and Wall Street thank you I want to welcome you all to what's become a tradition reflecting Enron's deep commitment to full disclosure joining us are thousands on the internet and on our video hookups with New York and Los Angeles as we distribute the report please welcome CEO Jeff Skilling who will share some of the highlights this has been an exciting time at Enron particularly in regard to our groundbreaking ventures into virtual assets the monetizing risks and creating new markets so let's take a look shall we an 18% increase in earnings a 20% increase in net income and a 280 percent increase in quarterly revenues 250 billion dollars bottom line this quarters results were great and we're confident that our record of growth is sustainable for many years to come ok let's open direct questions Jill Hackett front line how do you respond to charges that Enron and other energy traders have taken advantage of the California energy crisis the problems in California weren't caused by too much deregulation they were caused by too little all we've looked to do is create open competitive and fair markets where prices are lower and customers get better service we're the good guys here we're on the side of the angel get Grubman high field capital o where's the balance sheet how can we possibly analyze these numbers without one well sir as you're no doubt aware of the SEC doesn't require a balance sheet until we file in four weeks next quest you're the only company that can't seem to produce a balance sheet now I suggest you look into that thanks for the advice [ __ ] oh I couldn't leave my ears the CEO of one of America's top companies publicly calling a major investor an [ __ ] unthinkable this Preta wouldn't affect my meeting and walderson run all the numbers leave you'll find them quite positive interesting I've also been running some numbers Oh and they're even better than yours I'll drop the final contract and I'll send it over ASAP look I want to thank you for bringing this to me I mean I hate to admit it but well I've been kind of floundering here lately and this will really make a difference Thanks I can rely on in Iran yeah trooper here Cruz Bernie hey hey Bernie listen if you're calling about what skilling said I'm sorry I meant to say something else now that's not why I called it's about this earnings report but there's definitely some funky stuff going on in here dude just like last year's air Enron entered transactions with related parties whose general partners managing members a senior officer of Enron what is that supposed to mean you know what the 2000 report came out months ago okay and I'm sure if there's something funky war going on somebody a lot smarter than you would've already noticed yeah you're probably right right I am right you know why cuz I'm driving a convertible Lexus hey hey how's your uh how's your Hyundai working out for you I'm getting with you with the Astros dropping another close one to the Padres at Enron field in local weather houston we have a problem that's right storm clouds are gathering as a warm moist front comes over the Gulf thank you very much Sheila's red dress what your links to department store as a matter of fact it is department store I'm gonna assume you said that cuz your college cutting off the oxygen to your head I just want to make a good impression man okay this is the quarterly profit a lot of management here that's all Oh in that case I'll try to keep my belching down the middle Destin alright you're right I'm being a jerk I just these people are very sophisticated Babel my serve this is the place I don't recognize anybody this was August Sally August to the county where's Liz who died oh yeah I didn't know what to wear this is my fiance cord like this for a quarterly profit party yeah but it really gets wild at the annual bonus party I get you're gonna sell the drink another cosmic column C tweak a diet soda congratulations I understand you just got married is your husband here I don't bring him to things like this he doesn't enjoy them and frankly it's better for my career if I came alone why yeah so that's killing set this conference in Vegas right he says to the crowd do you know what the difference is between California and Titanic when the Titanic went down it's like we're still on yeah nine soda a jack straight and a cosmopolitan please thank you dumpy hey goof oh yeah you need a refill Baxter it's like an infomercial for viagra isn't power then are not vodka tonic please away got divorced we married the secretary same force killing she's still worked for Enron except now she's a corporate secretary pulling down 600 grand a year morning yeah you know we may be the only guys here still married to our first wives I'm not even married yet careful I can't believe these are the people you work with it's like a giant fraternity with an unlimited budget Oh max is wrong I just under an incredible amount of pressure please had an unbelievable court they're letting off some steam they play hard because they work hard they're no different than me and you after party tater chip heyo nice party isn't it the problem with science is that sometimes you miss him no matter how big tropical storm Allison had used to drop it 35 inches of rain in two days and I thought it was a sign I needed a new $700 raincoat meanwhile another storm had hit this one even bigger than Allison national media has issued an announcement that is shocked to any financial sectors investors and employees were completely off-guard by today's event world that thrives on stability stunning news from one of America's leading condo hint or warning analysts are scrambling to make sense of the news from Houston the resignation of Enron CEO Jeffrey Skilling comes as a complete surprise leaving Enron without a crucial member of its leadership team and raising concerns over the true reasons behind his sudden departure during my time at Enron I was immensely proud of what we accomplished we believed that we were changing an industry creating jobs helping to resuscitate an ailing energy industry by bringing choice to a monopoly dominated industry we were trying to save consumers and small businesses billions of dollars a year we believed fiercely in what we were doing well that was his statement that maybe we'll a forced him out it's Gil he's always been a loose cannon are you kidding who's Skilling's earnings record you have to be a satan-worshipping transvestite cannibal before they would get rid of it or not I left on his own after six months what does he got 48 years old and he's a CEO of one of the top companies in America Reserve doesn't make sense to me shock what name shock I'm really speechless yeah yeah thousand shares of Enron right away Thanks are you sellin already buying manatee like I said fifty love us at forty I want to thank you all for coming on August 14th our CEO Jeff Skilling resigned for personal reasons my respect for Jeff knows no bounds and while I regret his decision I accept it now it's time to look forward the vote has asked me to once again take on the job of CEO in addition to my regular duties as chairman and I have agreed surprised I agreed because I've never felt better about the prospects for Enron I agreed because our performance has never been stronger our growth has never been more certain and we have never had a better pool of talent together we will keep Enron the leading company of America of the world couple days later the interview in Business Week late old Wall Street there were no accounting or trading issues at Enron there's no other suitor job I thought he had everyone on board but that was at least one straggler Sharon Watkins George is a CPA at Enron our accounting may have been a little too aggressive looking income based on our own devalue stock related party transactions and there's a lot more that I think we should be looking into well I appreciate you bringing these serious accounting concerns to my attention as weapons I will definitely look into them back on the trading floor everybody taking a big hit a lay that everybody was tripping hey Brian crew ver much like to invest some money and run what I got last night right thank you what's the value another eight vows hey you guys gonna buy oh that's fine I know what I'm yeah yes I'd like to take money from my savings account and invested in Enron all of it that's right so more the emirate yes bring the total up to 16 million frogs yes women join former President Bill Clinton today at a reception in honor of the board day I finally put my paper in the Monroe and where did that come from you like it local conditions like don't for the season Ryan we already have a perfect like a TV which we almost never use sighs we're trying to stay for a wedding relax all right we can afford this something it's so small all the time excuse me I don't wanna argue with you so get some sushi sushi yeah you hate sushi well we got reservations at 7:30 is that a new watch oh my god Brian what is going on with you according to kaleidoscope remember Living Well is the best revenge you know I'm gonna pull it up I'm gonna find the numbers I will personally call you back all right Brian Kruger here Brian hi it's Alan Fleming uh how are things over there Alan I tell you it's great it's excellent Enron has never been stronger so did skilling get fired or what no skilling left for personal reasons that's all that makes me feel a lot better so when do you think we'll get the final contract discovered Ellen hang on we'll hang on one second dummy hey what where's the walderson Neal woloson dear Ellen's held up in risking truth Alan Alan let me call you back bud I'll call you right back tell me groover hobby event yeah I'd have a seat thank you so how are things up in bankruptcy that's actually the assignment I really wanted but for some reason they'd tie me down well I didn't know you know III need to ask you about the walderson deal somebody said he got held up woloson yeah walderson industries ah Walters oh yeah yeah listen don't worry my boss got a noisy phone call from upstairs yesterday signed off on it himself oh thank god why what do you mean well I thought the valuations were a little inflated don't take it personally though I mean everybody does it no I don't understand what you mean I did these numbers myself I ran the numbers I did I think these are my numbers I mean the planets would have to be aligned perfectly to get these results yeah well apparently your boss is anticipating a total galactic shift that's his signature right there why would well and change my numbers you're kidding right kübra how do you get rich here and I don't I don't mean a little bit rich I mean Lou pie rich bonuses and stock options bingo and what are the basis of them in runs profits wrong actually they're based on anyone's future profits which are booked the instant the deal is closed meaning on a 10-year deal the executive bonus based on 10 years worth of estimated future profits and who actually makes those estimates the same exact getting the bonuses and stock options now let's say that well the estimate turns out to be I don't know how should we say inflated there's an R I actually go back to the exact and get the stock options and bonuses back no way what there'd be no reason to avoid a risky deal I don't understand how upper management would allow it's because Enron actually used the same estimates in their earning reports which magically transform themselves into revenue which translates directly into higher stock prices for investors and IR bonuses and stock option payouts for execs everybody wins well mr. Krueger appears of giving you very high marks and you've scored some impressive deals we're keeping you on with a bonus thank you sir congratulations you have any questions just one how the hell can you change my evaluations on my deals when these contracts start going down the toilet have any questions no sir okay so I went out all right but there's no way Tillman could be right I mean what Enron's earnings going up every quarter and so many deals were bad I mean wouldn't the losses show up on the books how could we possibly hide that kind of debt from the board directors huh from Wall Street from the SEC plus it was absurd that Andersen auditors would actually sign off on something so she ate right yeah sure Enron stock is down all right but that just meant the profit to be even bigger when it came roaring back strength you can get to keep up with Enron stock as it continues to rebound oh sure hey glad you're still there Brian Kruger right yeah I like to put another five grand in Enron thank you come out how it comes out I see interruption sir Kruger okay listen I'm sorry we haven't been able to reschedule of a little chat but things have been rather hectic on us so have you decided what you think I better run oh you know it's fantastic I mean I it's uh best company in America oh well cooler clearly you're slated for great things that I run good hello blue congressman yes well it's good to hear from you no I don't think I have heard it ah lights were still on in the Titanic that's very funny yeah a fundraiser uh when would that be sure that little workout fun I have to be in Washington anyway talked to the vice president sure we can discuss our energy posit what's that sir well uh truth be told I think a big good time to sell okay 300 guests at 30 tables each with the deluxe flower arrangement just let me jot all this down Brian this is getting completely out of control was our big day I just want to be special honey it's our wedding how can it not be special don't you remember when we first planned all this shiny do we wanted something small and intimate romance right now's before before what before everything Courtney wait I'm doing this for you okay 300 guests at 30 tables with a fully stocked open bar and crystal champagne nice plus appetizers and a four-course meal we're looking at oh my god now for the wedding think we can go for five or six tear groovey groovey it's me buddy look your boys better have some answers for us this time alright dude this related parties transaction crap it's not gonna cut it anymore Bernie Bernie its Lance call me back quarter earnings report I know y'all are anxious to get to the numbers so let's just dive right in shall we a 26% increase in recurring earnings per share an increase from 292 million to 393 million in recurring net income with over 200 million of growth in core wholesale and retail energy businesses yes you were recognizing a one-time non-recurring charge in the third quarter of 1.01 billion what do you say well something about 1.0 1 million dollars ey billion included in these not consider losses associated with the early termination of certain structured finance arrangements for the previously disclosed entity which reduce shareholder equity by 1.2 billion I cannot believe Leigh tried to sneak that past in there I mean how could a billion dollar loss suddenly pop up huh and who was the related party in the related party transactions the supposed previously disclosed entity fast oh that's down fast how fast Oh Andrew Fastow chief financial officer turns out he had a bigger role than any of us ever imagined that stout built his career on the amazing ability to keep debt off the balance sheets see when deals go south debt appears and run out two choices you reveal the debt which would expose the bad deals of management and lower the stock price or you hide the debt guess what choice we made past I began creating partnerships to conceal the death was win-win until more and more of those inflated deals started crumbling what's causing more and more debt Department asked our company treated thousands of partnerships to hide the dead but in the end it wasn't enough on October 19th The Wall Street Journal reported the fast dial was running some of the same partnerships you set up to deal with Enron right later articles revealed that he personally profited in excess of 30 million dollars in Rome Europe fiddled bought a city burn in Texas people go hunting Courtney and I were visiting her family's range so they'll give me the rare opportunity to look like a complete idiot li put on my future father-in-law that Enron sure has been in the news lately Isis temporary I'm sure every company goes through a slump really so what is it you do for them again hoping to establish a division that can monetize his bankruptcy for Enron as they moving the virtual assets around breaking work was that mean virtual assets it's an asset that's not tied underneath the physical planner product yeah but what does it mean it's like the stock exchange except with set of investing companies you trade in virtual markets of risk and then in run and run they you know it's really complicated to explain to people that aren't in business so sorry what's the matter with you what Courtney it's not my fault if your brother didn't know what a virtual asset is maybe but it is your fault that you're turning into a work obsessed money obsessed self-obsessed virtual app why are you acting like this oh is this cuz I'm trying to give you a nice wedding correction you're trying to give your Enron bosses a nice wedding I'm just along for the ride Brian I don't think you're treating my baby girl too kindly that hurt things possibly getting worse Brian are you all right what did the doctors say rather than hurting like hell for why I said there's no permanent damage you all right mm-hmm see what happens when I take the day off especially with everything going on I got to stop the gift shop I gotta get a Wall Street Journal right yeah there's something I have to tell you no I know you didn't mean to say what you said at your dad's place and you're sorry but you know I'm beautiful I know you forgotten about it hmm that's not what I was gonna say what are you say I've decided to stay with my folks for a while what I think we need some time apart please don't call me I'll contact you your third factor a few things Enron stock has dropped 75% in less than a year the SEC is now questioning several of the transactions while others are calling for a criminal investigation the question now is with those inside and Ron know and when did they know it these past few days had a great number of stories and rumors about Enron some true many not I'm here to separate fact from fiction now I'm going to answer some of the questions you've written on the cards that were distributed around the hall at the beginning in this meeting first question mr. lay I would like to know are you on crack Oh that employees not very happy right now and that's understandable I'm not very happy right now in fact I'm heartbroken Enron is not just a company to me you're not just employees and Ron is my life my family some of you were concerned about college for your kids mortgage on your homes your retirement done and for that I am truly sorry but we're going to get it back true we've taken a hit a big hit but it's not going to change our mission which has always been sound it's not going to change the way we work which has always been top-of-the-line it's not going to change who we are which is the best darn company America has ever seen this downturn will not change us will not stop us we are not going to let naysayers and rivals bring us down and in particular I condemn the attacks on Andy fast ow Andy has my complete support and will remain our CFO lane was still supporting fast out even after the Wall Street Journal exposed his cookbooks his double daily like the head of the henhouse still supporting the Fox we will be back on top back leading the way into the 21st century full steam ahead yeah yeah that's what the captain the Titanic said right before hitting the iceberg I needed some air and I needed some answers Courtney yeah this Coover uh yes sir I'll be right there he was drinking his customary Blue Label scotch $300 a month Coover thank you for coming now that I've left and run this looks like you and just about everybody else will be leaving too right I think it's time we had our welcome to Enron meeting now Joe how about a drink Oh no thank you oh okay thank you is this your place well a bit bleak you know I go to New York for a couple days my wife took the opportunity to move out that three wives leave me they all said I was married to Enron and now Enron is leaving me Greeks must have a word for that do you really think Enron's leaving I mean they're they could be a merger that will never happen for any deal will be contingent upon due diligence and he due diligence yeah Lenny half-assed diligence will pick up can after can of worms Enron has a lot of worms Hoover and Ron has billions and billions of worms three weeks ago Enron was invincible and now they're facing bankruptcy how does that happen yeah it's a 25 billion dollar question who's to blame and I'll obviously there's Enron management greedy bastards lay skilling Sutton pie me paying ourselves huge bonuses based on phony profits selling our stock while we were telling everybody else to buy or for measly fifty two million dollars a year and Ron bought Arthur Anderson lock stock and general accounting standards barrel shut the Board of Directors surely don't care what management did as long as the stock price kept going up high they were all a part of it the banks and the brokerage houses and the insurance companies and the analysts and the media and the politicians they roll on the sidelines cheering us on going run go run that stock price up alan greenspan called it irrational exuberance I call it goddamn greed sure let's go overseas build some power plants India Guatemala Brazil a republic of who the hell knows what yeah we go in we lowball the bids we book the deals we pump up the profits and we pay the bonus is it there's only one slight problem hey no one at Enron really knows what the hell they're doing in that business it was the globalization of stupidity that was the real and wrong way what I don't understand I mean Enron reigned you know at Harvard at Goldman Sachs on the New York Times and Wall Street Journal hey Taylor the story Kruger San Juan Puerto Rico we lay in miles of gas pipeline through a subsidiary do a piss-poor job of course pipes leak I I report the problem to management what happened I broke the Enron rule no bad news no bad news ever they transfer my sorry ass the other side of the world about a year after my report crack pipeline causes a gas explosion 80 people injured 33 people are killed the bonuses were paid on time I cash my check system was corrupt almost from the very beginning it was designed to make people rich certain people rich based on the price of the stock any actual earnings any real profits for the company that that was a secondary consideration just just keep the stock price going up co-op the auditors pay off the sleazeball politicians are dazzled the media and wall street keep the lie going just keep the lie going it and the bonuses in the stock options would keep coming so who is to blame me I was to blame I'm the guy me and the other like me cheap amoral hustlers layin skilling and no trouble recruiting from the high ranks of the military from the Harvard School of Business from the London School of Economics or from Arthur Andersen cream of the crop Hoover oh we're the best of the brightest we're the bad guy we're the criminals I don't like it's just this company oh there's hundreds and later on zout they're the thousand cooking the books inflating the earnings hiding the debt buying off the watchdogs why are you telling me this I'm actually looking forward to prison Grover get some rest catch up on my reading finally lose 50 pounds I'm all done you will be going somewhere after an run somewhere it's important you take its lessons with you me a needy I do it I thought I told you I didn't want to see you right can you turn me out for a second please I grew up you know thinking money was everything and it cost me the most important thing in my life look Brian nothing's changed I've changed I called your dad today and and I apologize to him for hurting you so what do you want try you you're sweet though no never did but you it's more than I deserve one day after expressing his complete support they force fast out of take a leave of absence I said it was to restore investor trust didn't work chef seen it how could you possibly have seen this coming I mean public relations remember I'm not supposed to be fooled right here we are via satellite I'm just gonna zoom in hang on and voila look away god you can't really see Skilling's house from space we all paid for it scaling space can you see how those naked hotties buy a spool skilling it cashed out with over seventy million dollars why others are losing their savings their careers and some even their homes it turns out Lazar I really did live in and run one tonight y'all know that here at Enron it's still business as usual you have any questions kind of send them to our PR department by email thank you business as usual on the only weren't getting dumbs by the shredder everywhere else the deals that all stalled phone to stop ringing meanwhile and run issued a few Corrections finally admitting that it should have disclosed fast as offshore deals resulting in an additional debt of 2.5 billion dollars I made it sound like a mistake you making a checkbook not on to a no quarterback's something Bradley three letters it's tough one morning troops today's assignment gets your resumes in order you see that only my drowning in debt and all my savings are gone all six credit cards are maxed out and the only thing I have to show for it is a hole in my resume and stockholm is a don't amount to a roll of toilet paper jingle play well that's nothing I gave up a great job in San Francisco I moved my family halfway across the country I just closed on this hugely expensive house and we all hate Houston I got you both beat yeah my savings are gone and yeah I've got the expensive new house and car both of which I'm going to lose because my husband is still out of work after I made him leave his high-paying job in Seattle but that's not the worst of it you with yeah that's right five thousand more shares of enema yeah hey if you likes a ten you're gonna love a city yeah bastard you screwed me Alan my career my future I put it all on the line for this deal I trust you not Enron you Allen hello pallidus Brian don't don't hang up why are you calling listen I got good news I just checked the file and nobody at your company signed the final contract right you're off the hook what are you talking about I signed that contract myself you never sign the final contract understand me yeah yeah I think I do yes oh yeah mr. welland this is security downstairs you drive a Lexus right I just thought you should know that your car is being repossessed right now what I'm only two payments behind girl Oh there goes the biggest deal I ever made corset man there was just one less victim of Enron I lost it all money I saved for school four years of work it's gone I'm December 2nd 2001 Enron filed the largest bankruptcy in US history was the one thing in Ron's bankruptcy Division can protect against all right y'all listen up this is to notify you that as right now you're all laid off and you have 30 minutes to clear out sir and at the same time that was letting thousands of us go and run pay to select 500 to not get laid off exchange for agreeing to stay on during the bankruptcy total 55 million on top of their regular salaries John liberado 5 million Louie's kitchen 2 million Jeffrey McMahon 1.5 million all the way down to Emerson st. Pierre with a bonus of 300 thousand there are currently 11 federal investigations underway meaning with federal charges pending as I left Enron for the last time I recalled the words of Abraham Lincoln nearly all men can stand adversity but if you want to test a man's character give him power but of course that wasn't the end story of Enron may never end here the reluctance of something to tell the truth Californians are dealing with almost 40 billion dollars and inflated energy costs as well as a disclosure of internal Enron memos on manipulating the market not only were the lights out skilling like the joke schools were closed hospital services cut daycare facilities shut down life after Enron was difficult for many mislay lamented everything heard mr. lay owned was up for sale she was speaking from her $7,000,000 high-rise penthouse in addition to the 26 million dollars they still had another real estate and stock holdings not to mention whatever was left of the hundred three point six million dollars in total payments at Ken Lay received from Enron in 2001 but luckily mrs. Leigh had a plan her own salvation our money peddling leftover antiques it's called just stuff we want to just throw up however other Enron Heights responded more openly to the call for greater disclosure dream became reality when playboy presented the women of Enron and then Playgirl responded with the men of Enron Pickers I left Wall Street and found something a little more secure Don free return his family to San Francisco let's found another marketing job she's managed to put the e behind her Anna Marie was hoping to start college full-time in a year or two of all our team McClain he lost the most yet I have no doubt he'll land on his feet even Lazar I survived sorta but you know what I know I'm gonna love it here a real calm so what about me at 8 months the value of Enron dropped 99% and so did mine by any standard I was screwed that's why did I feel so lucky Hey Courtney and I got married you know in a small ceremony and bickers was my best man this was a story of a young knight seduced to the dark side when it was lucky enough to be seduced back

Channel: Nicolás Mercado

Views: 807,611

Rating: 4.6256499 out of 5

Keywords: La verdad sobre el caso Enron, the crooked e, The, Enron, About, Truth, Unshredded

Id: AiWKPQAWuug

Length: 81min 16sec (4876 seconds)

Published: Mon Oct 03 2011