Enron Case Study
Essay by review • May 1, 2011 • Case Study • 534 Words (3 Pages) • 1,288 Views
Abstract
Enron was one of the largest companies in the United States their own management's financial situations. This organization did not care about their employees or investors that enriched which turned around and left their employees and investors without anything.
Enron
Enron Corporation was the seventh largest company in the United States. This company lost over sixty billion dollars of stockholders' equity. They also lost employees lives savings when Enron filed bankruptcy. The loss caused the company to have a domino effect from top to bottom starting with CEOs down to the employees and their surrounding parties. Enron employees who were in the lower level of the operations were released from their duties while upper management received incentives. The incentives ranged from five hundred thousand dollars up to five million dollars each.
The first branch to investigate Enron was the Securities and Exchange Commission (SEC). The Securities and Exchange Commission opened an investigation on October 21, 2001. In December 2001, Enron filed bankruptcy that triggered an investigation into the company's operations. The Department of Justice and Department of Labor including house and senate committees first began the investigations.
During the investigation, the house and senate discovered that the laws they had implemented were not working effectively. The Department of Justice evaluated which laws were broken and by which company to further prosecute. In the mean time, the Labor Commission must protect the former employees' pensions, retirement, and benefits.
The Securities and Exchange Commission is responsible for the well being of the employees and the investors of the company. "The House Committees are governed by the Rule X and the Senate Committees by rules 24-28. Briefly, the rules for both out line the responsibilities of analysis, appraisal, and evaluation of the application, administration, execution and effectiveness of Federal laws and conditions and circumstances that may indicate the necessity or desirability of enacting new or additional legislation." (Ebensteiner, May 2002)
"The House Energy and Commerce Committees subcommittees on the Commerce, Trade, and Consumer Protection and Oversight and Investigations both have jurisdiction
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