So Enron (you know, the one who owns PG&E; the one who totally screwed all the California electric customers; the one who owns Shrub, er, Arbusto). Enron went from almost $90 per share a year ago to less than 50c today. What, a $20-30 Billion loss?

But whan all those poor old retirees, and the retiree wannabes, lost everything, someone had to score big, right?

So who were the winners?

-- joj (joj@home.org), November 30, 2001

Answers

It wasn't the stockholders, you can bet on that.

Retirement accounts of many companies are not tied directly to the stock, just in case this sort of thing happens. Don't know about Enron.

I can hardly believe that a company of this size went belly up so quickly. They were selling energy futures contracts also, so I understand that whoever has them is just out whatever they had invested. All the contracts are null and void.

It seems that all the ineptitude going on in Califonia earlier with the "energy crisis" was enough to put them over the top as far as bankruptcy goes. They had some long term contracts that they could not do without losing money. Governor Davis did not help any of the utilities at all during the crisis. The state, according to what I heard was mostly responsible for the debacle. Davis was just looking for a scapegoat, to hide his ineptitude, and there they were. I guess it was just a matter of time.

The capitalism haters will be happy "another one bites the dust." I guess the state could buy the utility and show us how it should be run, with Davis in charge. That would be a joke.

Talk to you later.

-- Bob in WI (bjwick@hotmail.com), November 30, 2001.

Ok Joe your next assignment is to put together and publish a list of all the "Golden Parashutes"....AND how large they are..that should be very interesting!

I didn't know they own PG&E...might that be their way of bailing out of that left coast mess???

-- Jim-mi (hartalteng@voyager.net), November 30, 2001.

This is not an example of the "state" screwing up a "free enterprise" company. Enron took advantage of the state of calif's attempt at "deregulation". That's free market, right?

So the way the deregulation worked was that the wholesalers (e.g. Enron) were deregulated. The retailers (e.g. PG&E, Socal Edison) were not.

So, Enron transferred a huge percent of PG&E's assets (not sure about socal ed) to the parent company (enron), then raised the rates for power they sold to the retailers. The retailers just about went belly up, so Calif had to bail them out, and had to buy power on the open market to "save" the calif residents, for ridiculous prices (like, over a dollar per kwh, whereas the "normal" rate in so cal. was five or ten cents)

So, basically, Enron had the perfect scam. They could raise rates through the roof, but consumers kept on wasting power as fast as ever, since their rates stayed low. perfect. huge profits for Enron, deep doo doo for the state of Calif (which means, basically, the calif citizens.)

So here Enron has made this fantastic coup, gotten rich at the expense of the calif ratepayers. So how come they are now dissolving? Who's making out on their current scam?

I agree that it's not the ratepayers. Maybe it's the directors, and their buddies, like the one they got elected Prez?

-- joj (joj@home.org), December 01, 2001.

joj, I heard on NPR last night the list of all the "president's men" who were forced to sell their eron stock because of conflict of interest and the HUGE amounts they held. Funny it all dived AFTER they had gotten rid of their interests.

-- diane (gardiacaprines@yahoo.com), December 01, 2001.

I heard on a local radio station thin morning, that the president of enron made $21,000,000 income from trading enron stock (as the ship sank).

-- Ed Copp (OH) (edcopp@yahoo.com), December 01, 2001.

So who "owns" Enron?.....Corporately that is. I am assuming that all of the major owners of stock have left the garbage in the hands of 401k style investors. Any ideas?

If I heard it correctly the news said that Enron is based in Houston and there are 21,000 people who are going to be added to the ranks of the unemployed. Many of them with 20 to 25 years in the company. Not the good.

-- Doreen (bisquit@here.com), December 02, 2001.

I thought this was very interesting:

Homeland Security Executive Director was Enron CEO

And this announcement of his selection:

Announcement

-- Doreen (bisquit@here.com), December 02, 2001.

Something's definitely fishy for such a huge company to go under so quickly. Me smells a scam.

-- Nexar (Arax7@mvn.net), December 02, 2001.

IMHO this goes way beyond scam.

-- diane (gardiacaprines@yahoo.com), December 02, 2001.

Our prez, Mr Morality seems to need to understand that morality concerns go beyond his crotch. When are we gonna wake up and DEMAND campaign finance reform?

-- john (natlivent@pcpros.net), December 03, 2001.

Maybe I misunderstood, but I thought I heard someone on the business news on the radio say that the retirement funds of the California state employees and teachers were big losers on this stock. Something like 50% of the fund was invested in Enron. I hope I was wrong on that.

-- Green (ratdogs10@yahoo.com), December 03, 2001.

John,

You still talking about slick Willy?

-- Bob in WI (bjwick@hotmail.com), December 03, 2001.

Nope. Willy hadn't gotten past his crotch and his lying ways. GW when selling himself to the american people was contrasting himself to Willy and implying he, GW, was a morally upright person and Gore wasn't because of guilt by association with Willy. He didn't have far to go to beat Clinton in that area but he shouldn't stop there.

I suspect GW's as big a crook as any of them with his obvious payoffs to the big money folks who supported him during the election and it is in that arena that I question his "integrity" and morality.

-- john (natlivent@pcpros.net), December 04, 2001.

Wow John are they knocking on your door yet?

Pretty strong stuff talking about our head cheese that way!

-- Jim-mi (hartalteng@voyager.net), December 04, 2001.