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Enron – The Biggest Fraud in History

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30 aug. 2019

In this video we take a look at the Enron story. At over $60 billion being scammed away from the public, they were the biggest fraud in history. Yes, even bigger than Theranos.
— About ColdFusion —
ColdFusion is an Australian based online media company independently run by Dagogo Altraide since 2009. Topics cover anything in science, technology, history and business in a calm and relaxed environment.
Jared MaherLucan Maher
The only surprising thing about the Enron scandal was that people were held accountable and jailed for it.
Stan Davison
I was in a power generation business group prior to my retirement. When the Enron guys were involved with a power purchase they came on very aggressively and confidently. It was clear that they always knew they were the smartest people on the room. My boss just refused to do business with them. He was criticized for it by some. Turns out he was right.
Its amazing how children are taught not to lie, when you’re an adult, its almost expected…
McKay Halverson
My dad was a consultant for Arthur Andersen back in the day, but absolutely DESPISED working there. It was one of the “big 5” accounting firms back in the day, and they just worked him to the ground. When he told his bosses that he was quitting, before everything went down, and was going to a smaller consulting firm, they laughed in his face. When the Enron stuff went down, and AA got shut down, they all went to him asking for a job. It wasn’t till years later that he’d even tell people he worked for Arthur Andersen! I was a young when it all happened, but I love hearing about it from this vid!
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Cross Category
Apparently, accounting teachers love this case
Skeleton Toes
“If I could go back and redo things, I wouldn’t” probably the only honest words out of Skilling’s gob
Sam Dan
Jeffrey Skilling out of prison early 2019 and starting up a new energy company backed by a former Enron executive, what a wonderful world
Will Nelson
“We’re trying to change the world” – that Enron slogan was also stated by Elizabeth Holmes of Theranos. If a business says that, run for the hills
Phil C.
I actually met and befriended an older engineer that had his own engineering firm for many years. He told me the story on how his company partnered with Enron. He spend several million dollars on expanding his business and long story short was never paid what was due. When Enron fell so did his company along with many others that depended on Enron.
What I’m learning from these videos is that when something seems too smart, too complex – too hard to understand or replicate – beware. Same with figures bigger than life.
Kyle Witte
My aunt worked at Enron in the UK, (Even though she is American) After all of corruption she was one of the final employees and was put in charge of trying to get Enron out of bankruptcy. She tells me so many stories about her time there and how bad it really was.
Dr. Quackenbacker
Ah, the good old days of the early 2000’s. VHS tapes, lunchables and capri suns, and the FBI busting through your door cause your Dad had done some Enron stuff.
sergio potes
Anyone want to know how a man could get 12 years in jail for weed in the same years this happens and these guys stole billions and got out after 12 years? Lol yes that’s the world we live on
DeShawn 'Dawg' BNBG
It seems to me that the main problem was that they DIDN’T mark to market. Whenever a deal went South and was worth zero (or more likely negative due to future liabilities), they just kept the fantasy profits in the books. That’s not mark to market- it’s fraud!
My parents actually worked at Enron Broadband at the end of Enron’s existence. My dad actually helped put together the technology proposal for Blockbuster deal. From what I understand, the issue wasn’t as much that the technology wasn’t capable, but more that the upper management wasn’t interested in actually making the project work because it wasn’t a pet project of theirs. Enron Broadband actually had a number of really bright people (I know I’m biased, shut up) who really knew their stuff, but the problem was that the upper echelons of Enron management were only interested in making quick cash.
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I once played a very small part in building an exhibition set for Enron. It was held on the week the scandal was unfolding in London. These super rich millionaire execs were full of fun, but by the last day were busted & jobless. It was a weird situation.
That “social credit score” the CEO pushed reminds me of something similar tried in Orange, a telecomms company in France after it was privatised. Executives were ranked according to the profit and revenues they gave to the company. However, in France it is very hard to actually fire someone for no reason (and if it’s found out that you fired someone wrongly, they can sue for plenty of damage), and therefore they used other tricks to push them out, including depriving them of meaningful work, moving them across the country, refusing to listen to their reports, etc. It ended up with a wave of suicides and the CEO of Orange at the time is now facing criminal charges.
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When I was in school Enron came to recruit. All of their executives came across as extremely arrogant and cocky. They seemed high on their own hype. They claimed to pick the best of the best: smart, self starters and risk takers to work in their company. Unfortunately not all that shines is gold. In this case, as it turned out, underneath they were just a big scam.
Moon Moon
Here’s my favourite line from the movie about this. “It had taken Enron 16 years to go from $10 billion in assets to $65 billion in assets. It took them 24 days to go bankrupt.”
Guardian of Fire
All that American politicians learned from ENRON was to never let big businesses die so they don’t have to see tide of employees leave with boxes of their belongings out the door in the news media. That’s why all those bailouts routinely occur. The idea “too big to fail” policy started with ENRON and was implemented to protect the banks and corporations moving forward using taxpayer money.
Mask Hysteria
I, briefly, worked as a software developer for a subprime mortgage company in 2006. It was my first and only time working in subprime and I didn’t understand the market going into it. When I found out my supervisor and his buddy, the chief applications architect, had previously worked for Enron I found another job as quickly as I could.
Okhae Adeleye
It’s wild that Executives can do this and still cash out in millions. Instead they should be stripped of all assets and serve full jail terms without parole.
ryan williams
I honestly don’t believe Kenneth Lay died of a heart attack while on vacation. It’s also amazing how Skilling only served as much time as somebody that sells drugs.
Lydia Waweru-Morgan
Funny thing: Jeff Skilling has a brother Tom who is a beloved meteorologist here is Chicago. These two couldn’t be more opposite!!!
Marc Pecora
I remember how big of a deal Enron’s demise was but I was a little kid. I had NO IDEA how much of an insane ruthless venture this was.
Issac Thomas
For everyone who is curious if Enron would not have been found out. They still would have gone bankrupt. The reason is because the debt never actually went away so eventually creditors would’ve wanted their money when the loans were due and since they did not really have the money this would’ve happened anyway
Sean Cahill
“If you have a company and it can’t explain in one sentence….what it does…it’s illegal.” – Lewis Black
Ano Nony
It’s crazy how many people were in on it. Their accounting company shredding all of those docs means they were fully aware
Stephen Pruszenski
I red a great book about the Enron story 13 years ago. The greed, corruption, lying, and complete lack of morals and ethics that took place throughout Enron was, and still is, epic. How anyone in their right mind could trust Skilling today is beyond my comprehension. Although I think Fastow was the top evil “shylocker” at Enron.
Those that “invest” in Skilling’s new venture really deserve what they ultimately get!
Kenneth Mc
My dad was a financial advisor who shared a building with a Houston law firm that was representing people related to the case. Everyone had to be escorted when in the building, as there were large balconies and they were worried about suicides.
Weird how criminals always donate to the supposed “law and order” party.
Julian B
The most distressing part of this story is just how intertwined with politics it is.
I only had two accounting classes but both of them made the students study and learn about Enron and Worldcom. Creative accounting has caused massive damage to this country and they dont want anyone to forget it.
Alexei Voloshin
The issue isn’t Enron, it’s the rest of entities that legitimized it.
Dagogo, great work on your videos… The editing, the research… it’s all high level content… Keep it up! Cheers!
I literally didn’t know about this until now. You’d think something this severe would come up more frequently.
Thanks for this video. I am just old enough to remember the scandal happening while I was at university but didn’t know the actual details. I joined Ernst & Young in Malaysia in 2002 as an auditor and remember auditing practices being more strict all because of Enron. EY in Malaysia even had Arthur Anderson equipment in their offices ;). My sister was actually working for AA in Hong Kong while all this was going down.
Peter the Panda
The biggest scam in the world is YouTube putting 3 to 4 ads in between videos.
opium extract
Was working at a chemical plant around that time that had a dock and storage that was owned or leased by Enron. I still remember getting off work and everyone was watching those poor enron employees walk to the gate with their boxes of shit from their offices and lockers. Most of them were close to retirement and obviously lost it all.
You only get “caught” if someone doesn’t get their cut.
Marijn Langejan
“It was his administration to believe, that intervention, wouldn’t solve anything.” As he intervened in Iraqi politics and invaded.
Harrison Fross
Enron fascinates me for the way that it’s perpetrators kept bluffing to the last second. I think it offers insight into the mind of people who catch themselves in a con with no exit strategy.
Joey Jamison
My late sister used to live in suburban Houston. She told me that virtually everyone in that area was affected one way or another by the Enron collapse.
A LOT of the employees knew that something wasn’t 100 percent legit with the company but they were making good money so just ignore it and hope it doesn’t explode when your still at the company. Same goes for the subprime mortgage crisis.
Man I love this stuff, I love seeing how completely idiotic people are falling for these absurd investment scams.
Peter Moore
The selfish gene is one of the most misunderstood books. While Dawkins mentions our ‘selfish gene’ he goes on to say that humans are unique in that we are better suited when working together as opposed to also being selfish
Om D
This episode was great. To me, it was a lesson in corporate greed, sociopathy, and megalomania in a 20 minute video.
joseph crosby mecham
Skilling’s rep wasn’t smeared, its been revealed.
666 Percent
Hi Dagogo. Great Video. I was a schoolmate of yours in highschool. I’m glad your videos are as in depth as they are, you have your father’s depth of detail. He helped me one recess understand harmonic waves to help me understand my guitar better. I hope you are all well and please continue making great content. 666 \m/
I remember my summer at enron in 1999. I was 22 years old and applied for the internship at my campuses “welcome” office. My mentor was very out going and seemed like he didnt care. We learned how to read charts, learned basic excel and met some people working in certain departments. Pretty chill place, didn’t feel like they were out to get anyone.
it’s just sad to see that every time a big company does fraud or collapses its the normal people who get affected the most
I’d love to see an Enron movie in the style of “Wolf of Wall Street”— with dirt bike riding and a cameo from George W. Bush in his coke boy days.
“I think we should implement a bonus program that pays out for ideas before they’re implemented and we can found out if they work or not.” “That’s a brilliant idea! Have a bonus!”
North-Shore Gcs
I went to the UMN and my corporate ethics professor gave Andy Fastnow, CFO of Enron, a ride from the airport to campus to give a speech on the Enron scandal. He said Fastnow was a brilliant guy who really seemed to have turned his life around after being sentenced to prison time. Recently he has been giving speeches on the importance of ethical business and financials.
Trouble Is
What I always wonder is if any of the energy traders who created artificial blackouts were charged.
If anyone who worked there had have asked, “where the money was coming from,” they would have aroused the suspicion of those above them in the pecking order. After a while the high-ups would have amassed enough reasons to get rid of them.
Absolutely dispicable, they are just theifs and it doesnt seem like enough of them were held accountable.
Matthew Kagan
In my mind I am trying to picture how those employees felt when they got laid off. They must have looked back at all those 18 hour days, and lamented time they lost, and the sacrifice to their health. Those years they lived in fear of being rated a 5. All those times they invested that hard earned money into 401k. To give so much of your life to a company with the hope of having stability and to retire obe day, and in just one day is all gone.
David Schmidt
Amazing. Great vids! I watched the Theranos vid before this and now this one. Great work, thank you for creating and sharing this level of (REAL) journalism. It is truly appreciated.
Ajant Smith
Selling weather as a commodity? Honestly I’m so impressed by these guys I feel like robbing my own house.
Nishit Kumar
At 7:57 you said that Indian govt cant purchase the Enron electricity, although you are true for the most part, the fact was that Enron tried to sell electricity of 11 INR /Unit which was far more than 0.35 INR/Unit which Indian govt procure its electricity for other sources. So it was right that the Indian government didn’t wanna buy electricity at that outrageous price cause they were not fools. PS- Even two decades later, the domestic electricity price is 8 INR/Unit in India
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Jake Moeller
I lived in NorCal during Enron’s control of the energy grid. With frequent brown-outs, we knew that something was amiss. The Smartest Guys In the Room is a great documentary on the Enron debacle.
Gary Morrison
That’s wild: I was apparently-mistakenly remembering the ENRON scandal as an early-1990s thing… Thanks for the refresher! My (faulty) memory was that the biggest scandal was not loss of jobs, but that most ENRON employees had their 401Ks in ENRON stock, making them all worthless in days.
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Shira Cremeans
Here’s my favourite line from the movie about this. “It had taken Enron 16 years to go from $10 billion in assets to $65 billion in assets. It took them 24 days to go bankrupt.”
Steven Spangler
Dagogo, stumbled into the Theranos story by accident, loved it. Followed up with Enron. Subscribed and spreading the word. Great job. Really enjoy your work.
I love how America really hasn’t changed in a century. Instead of outlaws on horseback robbing stagecoaches they now wear business suits and a smile.
Jason Cotterill
They overemphasized making deals without out ever focusing on carrying out those deals, which created a massive whole in their cash flow, especially when you look at their bonus payouts on those deal closures.
The mythology of Enron is a complex one for people to understand… until everyone realized that they weren’t supposed to. The people who ran it made sure nobody understood how they worked… because there wasn’t anything to understand to begin with. Thanks for such an interesting video.
Mark-to-market accounting sounds like a concept engineered by lawyers as a way to drum up new business from high net worth clients who have been indicted for fraud.
Khefren Ka
Very informative video. At least one good thing that came out of this is tighter guidelines on accounting practices.
My mom, RIP, lost many tens of thousands of dollars at the hands of these f’in crooks. I think our judicial system is totally broken. Ken Lay had a home in Boca Raton, FL filled with millions in art – because in Florida, your home can’t be taken, so you fill it up with valuable assets. My mom, and the millions of other stockholders that lost fortunes, should have gotten every penny from these bastards. They should have been penniless.
Ashura Hanok
As a graduate of accountacy and currently accountant, this scandal will always be included in every Auditing, specifically the Sarbanes-Oaxley and Understanding the Internal Control discussions especially that Enron also brought down with them a famous auditing firm called Arthur Andersen. PS. Their methods of lies on accounting methods are somewhat similar to our government structure in our country. Most, if not all, higher ups keep taking government money for personal spending and make it look like a ‘project’ or a canvassed necessity of the agency at triple the price. Embezzlement in the government is worse than Enron’s scandal in my opinion because for decades, history repeats itself and no one will whistleblow, if there is any… mostly it’s not a good type of whislteblowing. Decent and righteous accountants will lose their minds, speaking from experience and this is why most government accountants here never lasted on a gov’t agency because it’s either they moved to a company with a lesser corrupted environment(mostly private ones) or… they got pushed to the Other Side(if you know what I mean). These goes same for Auditors too.
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Jason Pollock
ColdFusion – “Enron is the biggest fraud in history!” Bernie Madoff – “Am I a joke to you?”
Will IB
This channel deserves an appreciation post. Three cheers for Cold Fusion!
E. Simson
Literally used as a case study for many of my finance and economic classes
Setu Purohit
Can i just say that this was an extraordinary YouTube video! Great job, keep up the good work fellas!
Raze Ranger
My dad actually worked for Enron just as like a lower level employee and I’ve always wanted to know more. Great video man:)
Ernest Somogy
What is amazing to me is how nobody is being prosecuted for the failure of General Electric which did a lot more financial tomfoolery.
I wish I worked at Enron during its heyday. The Smartest Guys in the Room is an outstanding book if anyone is really interested in reading a very well-written account about the rise and fall of Enron.
Chris Parkes
I’ll never forget the part of the “The Smartest Guy In The Room” when Enron employees are organising rolling blackouts to increase stock prices and senior citizens are dying as a result.
Keisha Williams
Here’s my favourite line from the movie about this. “It had taken Enron 16 years to go from $10 billion in assets to $65 billion in assets. It took them 24 days to go bankrupt.”
kermit hoffpauir
Enron was also the largest force behind the Kyoto Accords. It stood to make a killing by hosting the world carbon credit trading platform and for which is started the major wind energy boom of the 90’s building wind turbines. This division was sold for peanuts to GE in the bankruptcy.
Gia Anne Villanueva
Commending you for a very clear and straightforward storytelling
Oscar dario Mata
I remember hearing about this in the news back in the days, had no idea what was happening till now.
10:23 I just imagine this scene where those two are literally in an office and one of them actually says “We need a new goldmine” and the other says “gold mine… gold…EN STATE!” And flings a pen across the room which hits and dartboards itself into California on a map on the wall. I don’t know why, this just makes me laugh.
Elias Håkansson
This just shows how incredibly competitive the financial markets are; it’s actually easier to be clever enough to circumvent the system and find loopholes, than it is to play the game honestly.
Dolores Griffin
The selfish gene is one of the most misunderstood books. While Dawkins mentions our ‘selfish gene’ he goes on to say that humans are unique in that we are better suited when working together as opposed to also being selfish
18:10 This is actually a really important headline. We can all hate Jeffrey Skilling as much as we want, but that leads to ignoring people who are doing what he did (or worse) right now. Maybe he can do some good now that he’s out (doubt he will, but it’s possible)
YIKES. I just heard my Financing teacher talk about this case, but I did not think that it was this bad. I am glad that there was at least an end to the company for this.
Third Temple
“It’s with Kenny Boy that the story starts.” You know this is gonna be good
Michael Monaghan
And we had 911 at the same time. This is so telling, but people still put their heads in the sand. This is a great piece!
Skillings is out and at it again. Sheesh. You’d think they’d have some kind of Financial Offender Registry or something, like they do with sex offenders.
The Red Guy
thank you, the reason I watched this was because I rewatched Superhero Movie, and in one of the scenes Robert Hay’s character was dying said something like “withdraw all our investments from a little company called Google and put it on Enron” now I know lol
Well, Enron was a pretty good one, but for the title of Biggest of All Time, I’m sticking with the War on Drugs.
lola clyde
The “smartest” guys in the room weren’t smart enough to realize there’s more to life than making a buck.
Vishnu Acharya
Enron had promised to supply electric power to Maharashtra @ Rs. 5 for 5 years: and built his empire on this deal but was suddenly denied the deal: this also contributed to its collapse.
Casey Michel
It’s amazing how little jail time these corporate thieves do yet a corner street weed dealer can get put away for life. It’s truly unbelievable
Connor notyerbidness
This documentary finally solved a question id had for Years- why when i was a kid my town had so many rolling blackouts We were in a high end area, and my parents always paid on time so wasnt like it was simply half the town not paying their bills Suddenly it all becomes clear
Jay Kant Mishra
Good Job Cold Fusion for bringing such real stories… already Subscribed.
Your Pocket Mechanic
Wow. Enron nearly bankrupted the utility i work for. It was at that time California deregulated the electric utilities meaning they could not generate their own power they sell and must purchase it through other suppliers. Enter Enron. Enron was selling electricity for nearly 10 times what the utilities were generating it for. Nearly bankrupted all of California utilities. While I am only a mechanic for the utility, it nearly cost all of us our jobs.
Paul Kellerman
I’m from the Philippines my dad used to work for enron, we were well off during those times and enron paid for my mother’s life saving surgery before they went bankrupt, enron deserved everything for what they did but hey at least we got something out of it
Eric Navarre
Oh how i miss the days of actual reporters asking real questions and doing actual investigating and being honest in their reporting.
Luca M.
“Enron – The biggest fraud in history” South Sea Company looks around nervously
What was the rationale for the SEC approving their accounting practices? Sounds extremely dubious.
John Iii
I wasn’t surprised. I was casually dating a guy at the time when i lived in Houston for a couple years, and the stories he would tell how they just made numbers up. He dumped me the night I asked a simple question and “so you’re ok with that”? No loss on my part. And i claim no moral high ground, but the culture and those that bought into it were just very unattractive.
12:26 Bush: Intervention in California will not solve anything. Also Bush: Intervening in Iraq will solve everything (that we made up).
That is a massive misrepresentation of “The Selfish Gene”, and one that Dawkins has explicitly addressed.
Sergii Soshka
Amazing video! one correction, Lou Pai didnt run with all he got into sunset, he had some charges too and paid $30mil in restitution
Stephen Doherty
Enron ironically sold off some great innovative companies in the early times. The reason for selling them was they couldn’t make cash quickly enough for enron
Excellent explanation! Thank you for this.
Bob John
I love these stories but its important to remember the devastation these unscrupulous directors cause on the average working man and woman and the average investor.good old greed.
Alex Griffin
15:26 … He paid fines with money he stole… So can I just rob a bank, go to jail, then pay a fraction of what I stole and keep the rest?
To those of you who haven’t seen it yet, check out “Enron, the smartest guys in the room” As a documentary lover it’s one of the best ever made.
Paul Thrutner
Linking up with blockbusters for a streaming service in year 2000 was way ahead of its time. Somebody could predict the future!!
Always angry
after all this years i still dont know what enron was supossed to do besides fraud
Nicole Hunt
Here’s my favourite line from the movie about this. “It had taken Enron 16 years to go from $10 billion in assets to $65 billion in assets. It took them 24 days to go bankrupt.”
B izichyld
Thanks for this mini doc. I knew very little about Enron other than it involved energy, corruption, and bankruptcy before watching. However, now I am an angry boy.
Abhishek Prakash
That was was a very interesting and informative episode! We would love to get a ColdFusion video on the Lehman Brothers that lead to 2008-2009 global economic crisis. Thank you and team for the quality content that you are imparting. 😀
Layne Martin
Interested in this because my uncle worked for Enron and was let go a few months before they went under and sold his stock to make ends meet till he found a new job when I was a kid
Martin Mueller
Personally I am more angry at the independent auditors. The level of incompetence was so breathtaking that it can either be categorised as negligent or complicity.
Head Chef
I remember hearing about this growing up. I just remember the governator doing a good job
David Hill
These videos are brilliant and so informative. Well done Cold Fusion
Amanda Heun
My dad almost worked for Anderson before all this went down. He was so glad he went for a smaller firm.
I just think it’s funny that the SEC wants to regulate day traders out of work because of COVID and their influence on the stock market, but not Skilling’s “private” endeavors
I get the feeling we call every scam “The Biggest Scam in the world”!😂😎
Ben B
I think every business student has watched Enron: The smartest guys in the room.
Nemiloš zorkA
Wow, hold on there. How did you involve Richard Dawkins into this? He explicitly stated that we are the first “product” of the selfish gene that have capacity to fight against this natural embedded selfishness, and that we should do it. Richard Dawkins was not speaking for this “gene”, but using our knowledge and science to fight it.
Djamel Hamdia
We have to admit: Skilling is genius!
One thing these frauds say in common: “We’re changing the world”
John Archila
The smartest guys in the room documentary blew my mind. I was hella young and my perspective on our country changed forever.
Christopher Armitage
One of the saddest parts of this story is that Ken Lay died of a heart attack before his sentencing. Would have been better if he had gotten the full 45-sentence year and then lived to 105.
I can’t imagine being so empty that money is the only thing that motivates you.
This is how I imagine the daily life of an Enron employee would be. Employee1: spends $1M to buy all the lottery tickets but only wins $10K in one of the tickets. Enron: “Let’s see, 10K revenue generated per day over next 20 years… Let’s give a 5M bonus to EVERY top executive.”
창녀 줄리가 청와대 접수하다
Is this channel run by Pons and Fleischmann? I was impressed by your experiments! Thank you for the high quality contents.
vanessa de santi
loved this video. very informative and well done. thank you. I have subscribed to your channel
Nate i
This is a good short form retelling of an exceptional documentary named “Enron: The Smartest Guys in the Room”. It’s on Netflix. It might be one of the best documentaries ever
Elizabeth Warman
I worked at a box company, where I was a Credit Analyst. Enron came to my desk. I ran the credit report, which looked to me. I remember my Economic class. I was taught a new company loses money the first nine years. So, I knew there was Something with Enron. I took my credit report to the General Manager told him I want to give Eron a firm $40,000 credit line. The General Manager said no,make it $60,000 credit line. I told the manager, Enron will collapse before the end of the year. Taking our Box Company will follow Enron. I was let go a month later. But, I was right about about everything thing.
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Dianne Maloney
“One reporter would soon start asking questions…”  It only takes one person to make a huge difference, to stop a huge machine, to end a huge wrong.
A great documentary…enjoyed it immensely!!!
Zara Kayn
Elizabeth Holmes’ father was a VP for Enron. Lol.
Tammie Knuth
I wish when I worked at Humana that I got to work with Joanna longer. Shes actually great and she was tough and a great boss. So deserved her promotion but biasely one of the best bosses I gotta work with. I got along with her well!! No complaints from me which is rare.
senor frog
it appears ive already commented on this video. oh well, i ended up back here after watching the video about barings bank… and similar to how i felt about the aftermath of that incident, i feel basically the same in the case on enron. you dont have to be a CPA to realize how ridiculous “mark to market” accounting sounds…. it goes completely against rules in place in the FASB codification regarding revenue recognition.
George W. Bush: “Holding people accountable won’t solve anything.”
David Jara
Loving this channel. Thank you.
Those frauds make me angry .. they need good punishment ! We need stronger laws
songhee G
“but the executives didn’t know india didn’t buy electricity” that just shows how detached high executives are from the rest of the world.
You can say that Jeff’S killing it again…..I’ll see myself out.
Bruce Lee Hee
When u think you’re the smartest guy in the room . There will always be someone smarter
Ronald DeBose
This video is very similar to, and in some cases word-for-word from a movie ‘Enron, The Smartest Guys in the Room’, from Magnolia Pictures in 2005.
Thank you for that little 💎 of information at the end. What a coincidence 🤔 I like the way it was explained. A decent summary.
Faith Morakinyo
6:537:02 “That’s our vision, that we’re trying to change the world.” Yeah, they did change the world, in the worst way.
epic nhoj
12:25 “George W Bush refused to step in, saying that his administration believed that intervention would not solve anything” HAHAHAHAHAHAHAHAHAHA
Σκοτώνω Χαρά
Companies like these just keep popping up every few years, it shouldn’t be just because of our memory problem…
So Enron did the equivalent of pretending you win even after you lose millions in gambling.
Cernan Oliveros
When it’s about fraud, deception, manipulation and corporate greed, there is always that one political party that has close ties to the people involved…
Fabio Silva
What Im more surprised of is how Skilling hanst “headbutted” a bullet yet. You woulve think dangerous players lost money because of him.
Sharptooth Trex
Whoever got involved with Enron must face the death penalty.
Stefan L.
“Trading the weather” sounds more ridiculous in this video than it is in reality. Weather derivatives are a commonly used financial instrument in energy markets these days.
Kgale selepe
Very informative ! Thank you for a great video
Dan Swann
“Skilling’s reputation was smeared…” I would say destroyed! Through his own actions and those of the officers he employed!
Jędrzej Zawadzki
You are doing some pretty good job over here Mr. ! (along with your team I guess) .
Willis Sudweeks
Lol Elizabeth Holmes and her dad both thought they were smarter than everyone and ended up falling on their faces. After how many they hurt that is just hilarious.
Tay Velez
as someone from puerto rico who lived there during hurricane maria and experienced many blackouts before and after the disaster due to the corrupt power grid system, I really wish these guys the fieriest place in hell
This was amazing! Both investors and brokerage houses would visit the “boiler room” on the 14th floor, it was completely fake. :0018.
I still don’t understand how any of these crooks were able to keep any of the money they stole ? Seriously it’s so wrong , think of all the little people who lost everything..
Ritvik Jain
Hi I am from India and I read your book NEW THINKING at a library . Despite the fact that I was having high expectations your book surpassed my expectations .I would recommend people to put this book in their must read list .
“Money is the only thing that motivates people” no, fear of getting fired because they didn’t make you enough money was what motivated them.
Patrick Donovan
Multiple tobacco executives asserting before a Congressional committee, “Smoking does not cause cancer” has to be in the argument. So does the Madoff Ponzi scheme. But what Enron did with the complicity of Arthur Anderson (booking revenue as earnings) is the same thing as what the Trump Organization has always done. That’s why TTO never went public. 2-sided accounting is hard. Yes, I realize this is recency/local bias. I’m sure this happens globally.
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4:53 The Selfish Gene does not promote Social Darwinianism (Survival of the finest in society) it explains how evolution works and what part of it (the gene). Richard Dawkins would not think in the cruel and ruthless ways that Skilling did; Dr. Dawkins is a scientist. The Selfish Gene is an overall amazing book, only interpreted by Skilling in a capitalistic way.
Skilling returned to work in the energy sector in 2019, only to see it get destroyed in 2020. Serves him right lol
Considering that Enron was trying to trade with Blockbuster for Streaming Service bandwidth and the deal fell through, and given one of the issues with Blockbuster was that they were way slow on the streaming service bandwagon, Enron may have been indirectly part of the reason Blockbuster fell.
Fun fact: Skilling is actually an old Scandinavian coin and also used as a slang in more modern times for money. Fitting..
James Keister
I think Andy Fastow said, “I don’t care what you say about the company just don’t make ME look bad.” That’s how it appears on “Conspiracy of Fools” I’m almost certain. Good video!
Hans den Otter
I’ve seen this video, it’s great, like all the others!! I did stumble upon just now and I believe the title is outdated because the injection scam has replaced it… that will be a great eye opener in the near future!
mVm MotoVlogMusic
18:20 you could “say no more.” or you could say “corruption runs in the family.”
Troy Trey
It’s funny how you can be chilled for years and years for a robbery or other offences but these bankers get a fraction of what they should be sentenced to. I mean has anyone thought to consider the amount of lies and jobs lost and damage these people have done?
Google Google
When he called Arnold “The Terminator” I lost it lmao
“Biggest fraud in history” Bernie Madoff who is currently serving a 150 year sentence: Am I a joke to you?
Julius kyalimpa
Beautifully done documentary. Right on point and not long.
Mac W.
“The Selfish Gene describes how greed motivates human nature.” That’s not what The Selfish Gene is about AT ALL!
una helana
The selfish gene is one of the most misunderstood books. While Dawkins mentions our ‘selfish gene’ he goes on to say that humans are unique in that we are better suited when working together as opposed to also being selfish
Alexander Carder
I’ve just come back to this story again as it’s my favourite Coldfusion video.
Bwana Lawi
“Skilling is out and starting another company” SoftBank: Take my billions
private delete button google is missing
So they really were imagining being that rich and became rich but thought their ways were legal at the expense of people losing their homes due to such high utility bills.
7:58 – any corporation that owns a round table that large must have a bit of a ego problem in upper management. They should put a pile of cash in the middle and play hungry hungry hippos with it. Whoever gets the most wins that amount!
Thomas K
Enron, the biggest fraud in history. The bank bailouts: Hold my beer
Ceri Evans
Good video. One of our traders wanted to sell Enron a crude oil cargo of 1 million barrels and asked me about giving them credit. I said that they needed to provide a letter of credit. He said “But they’re huge!”. “They were nothing a couple of years back and they could be nothing tomorrow. If they are making huge sums of money trading, then someone is losing it and I don’t see that.” Glencore, Vitol, Koch all got open credit because it was obvious where they were making their money.
If only these talents were less directed to greed they could make great companies serving the people AND have good salaries instead of obscene ones.
Connor Hunter
This video made me want to become an auditor, I’m one test away from being a cpa now
Michael Goodman
Enron only changed their name after the bankruptcy. They still operate today and many of their executives are in politics.
It’s all fun and games until you start to take notice of what group of people seems to always be responsible for these massive scams
Pietro Legramandi
Actually something I didn’t expect was the length of the executives’ senteces, man 24 years (with actually only 12 years served) is quite a lot for financial crimes, even though he probably deserved a lot more.
Imagine if they had thought to name it “Enronline.” They’d still be in business today.
Kuba Libre
4:50 Saying that The Selfish Gene “describes how greed and competition motivate human nature” is an unfair representation of what this book is actually about. Sorry for the nitpick, but I feel like it should be stated.
Dion Lindsay
11:39 “Increasing the price as there was less demand”. Nope: it’s increased demand that raises prices, that or reduced supply. Which is what happens when you close down power plants for a few hours.
Just Me
You didn’t talk about that brave woman who took a pretty hard back lashing for bringing up the corruption. I remember it was her story that hit me the hardest because of what she went through to get the truth out despite her bosses threatening her.
Peter August
effectively this meant that the company was worth more then it had earned. I like how this was something special back then. Today this is standard procedure for cool and hip companies with energetic top level management and fancy product presentations….
whenever executives or especially the CEOs of companies like this which are found guilty of major scams and as a result leads to the bankruptcy and destruction of employee lives.. I believe that these executives should be held liable criminally under charges such as Involuntary Manslaughter or similar for any suicide of ex-employees whose suicide was a direct result of the scam/bankruptcy and the ex-employee’s ruined livelihood. I hate that scammers like these only are charged with “white collar” charges, so this means they are tossed in a white collar criminal prison, which are essentially like hotel rooms/resorts where they are able to plan their next scheme or business venture with like-minded individuals. Instead these types of major white collar fraudsters should be thrown in prison with violent offenders in the general federal prison system so they can rot in prison along side murderers, rapists, and scum of the earth.
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scott stevens
Ah, I remember being offered a job with enron, in June 2000. Luckily I had the presence of mind to turn it down.
Loong Bong
Please do a video on the *”Billion Dollar Whale: The Man Who Fooled Wall Street, Hollywood, and the World”*!! One of the largest financial heists in history!
forandon behalfof
Errrr…… “Survival Of The Fittest” is sooo often misunderstood. What it really means is “Those Or That Which Best Fits Their/Its Environment”. Which, I suppose, describes Skilling perfectly….
Jackson Graham
We need more documentaries like this
Ian Templeton
Anytime any company says “we’re trying to change the world,” start asking questions.
JoJo TheOJ
My mother was absolutely livid and devastated when this happened. She lost a ton of retirement money. She also was and still is adamantly against regulations and a straight ticket republican. Try as I might, I can’t understand that. Her political beliefs seem demonstrably and directly harmful to her. And yet. 🤷
“Not so typical ending.” The rich (mostly) got away with it, and tons of poorer people suffered horribly. Not sure what’s atypical about that.
Adam Courier
Read The Smartest Guy’s in the Room. It’s one of my favorite books and explains everything in detail. One correction: W Bush gave Lay a nickname but personally they weren’t terribly close. Lay actually bet against Bush in the governorship in Texas by donating to his rival creating an arms length relationship. Lay was closer to H.W. and Martha.
It wasn’t until I watched this that I know why they used the E symbol for MrRobot. I absolutely love that series 😊 I’ve never heard of Enron before, but that’s only because I’m a millennial n don’t live in the US.
David Williams
Jeffrey Skilling and Andy Fastow, even with cooperating with federal authorities, should have both served at least 20 years in prison.
David Casciari
This is like a summary video of the documentary about Enron
It’s interesting that Enron went down but hardly any other companies doing similar things why’s that?
James L
Wish you made more content like this again..
Put on a suit, a flash smile, some fancy wording and slap on an approval from an auditing company and you’re all set!
Ola Kolade
plot twist: the 29,000 ppl who lost their jobs poisoned him out of revenge, making it look like a heart attack a month before the sentence.
I still call Minute Maid Park, Enron Field😂 I remember this, and it was a weird time for Houston. They were still recovering from tropical storm Allison. That crazy bitch Andrea Yates’ case was all over the news. Compaq Computer got bought out by HP, and thousands of people got laid off. Then Enron.
You know there was that one person early on who knew something was up but everyone thought they were crazy
Manny Tiamzon
There was not too much emphasis made in this video about the auditor who should have caught this evil scheme in the first place. This is the reason Andersen no longer exists because of their role in this scandal.
I always enjoyed this story of Enron. Their commercials back in the day were everywhere. Bernie Madoff (he Made -OFF) is seconded to this.
Jason L
Once they bring in the bobcat to help with shredding papers, you know it’s time to look for a new job.
Le Quoc Hoan
The most distressing part of this story is just how intertwined with politics it is.
The Selfish Gene does not describe how greed and competition motivate human nature! This is such a common misconception that Dawkins himself addresses it in the preface of the book. The main message if any of The Selfish Gene, is that the selfishness of genes gives rise to altruism in animals like humans. So it’s basically the opposite takeaway!
if Pai were a white dude, he’d have had a movie a long time ago with the classic villain who got away plotline
An Unjust Peace / A Just War
sounds like the SEC itself needs to be reorganized
John Trolle
60bn in value 😂 That’s what Apple spends on stationery
Oasis Crushinglife
The Federal Reserve scam makes Enron look like a back alley dice game with weighted die
I adore when things go horribly wrong for these types of people
Sonya Frost
You got the wrong PGE. Portland General Electric was the company Enron bought to jumpstart its electricity trading operation in 1997. Pacific Gas and Electric was a company that declared bankruptcy in 2001 as a result of the California energy crisis. This actually did incredible damage to Enron as Enron Energy Services was owed a lot of money from Pacific G&E that they could no longer collect. The revealing thing about this was that the wholesale traders in Enron North America celebrated when EES failed, when they had essentially traded another business unit in the same company straight out of business. To me, that speaks volumes about the Enron corporate culture.
How can so many factual errors and gaffs be included in such a comprehensive video like this?
Kevin Liu
One mistake in the video, Enron merged with Portland General Electric (PGE) NOT Pacific Gas and Electric (PG&E). PGE, despite being an Oregon utility, still had connections to the western grid and thus the ability to influence CA electricity prices.
Skull Fury
Good stuff. Still subprime mortgages remains the biggest fraud.
James Jones
Had a boss who went to work for Enron. He wanted me to join him. But Enron’s policy was that you had to transfer 100% of all retirement into their retirement plan which was invested in Enron stock. I did not want to do this. I was very uncomfortable about this so I said no. Then this happened and a lot of people lost all of their retirement. One of the best decisions I ever made !!
Mark to market always gets a bad rap in Enron videos. There was actually some justification for it when Enron moved from pipelines to trading. Mark to market is common in securities trading. My opinion is that the key difference is that in securities trading there is usually historical data to use when making predictions. With energy trading there wasn’t. What this means is that Enron would have needed to have very tight internal controls, robust internal audit and careful analysis, in addition to an impartial external audit. None of these things happened
Michael Jackson
Easily one of the best most high quality, most informative content I’ve ever seen!
SL twentyeight
need to watch this regularly. remind myself to cash out before things go boom.
Kyle Broussard
I can’t believe this was a real company
Lets Go Brandon!
Who would ever do business with any of these people ever after they get out of jail?
Liberal Patriot
“Behind every great fortune, there is a crime.” – Mario Puzo.
El Cid Secundo
The takeaway from this is money and political connections go hand-in-hand. Enron could not have done this without a wink and nod from the U.S. Gov’t.
That genius asian man cashed out just at the right time
Vince Almaraz
I’ve always wondered how anyone with a brain could allow Mark to Market accounting to even exist. Talk about subjective. Enron used this to make their profits seem like whatever they wanted them to be.
The financial fraud videos are my favorite, insta thumbs up
Kim Kima
“The govenor they want, the Terminator.” Hilarious😁
9:51 I legit thought you said “LJN” and my heart practically skipped a beat thinking I had just learned the truth of the Laughin’ Jokin’ Numbnuts
No matter your ideology, we can agree that Enron was an evil company, and are glad this company is gone.
ben spencer
I was pretty young one of the youngest people ever to get offered a job with CityGroup most the time you had to have at least 5 years in management before they would even look at you but they offered me a job a 20. I didnt go for it due to the fact they were one of the groups that gave them bail outs.
Marc Jones
The Selfish Gene is such an over rated book. It hugely oversimplifies the relationship between individual genes and overall phenotype.
Enron’s story is literally Corporate America in a nutshell. Bush and the Government not stepping in during the rolling blackout shenanigans, but is conveniently best buddies with them thanks to that good ole fashion lobbying.
Nour M
How can someone be so lucky to be so rich, corrupt, and old, and die before sentencing?
Neil Kematch
The two smartest men in the room. The fall of enron. Nice documentary too.
When your accounting company brings in a backhoe to destroy the documents.
Michael Smith
Enron: We’re the biggest fraud in history. Theranos: Hold our beer. COVID 19: Glad to see you’ve got a free hand, Theranos. Hold this…
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Caro Sullivan
When you invest you’re buying a day you don’t have to work
Carl H
“and they got away with it” The end.
Its good that Enron went down. Its good it was investigated. Its always better to make money legitimately, no cooking of the books is necessary.
You should’ve included this factoid: Jeff Skilling’s brother Tom is a beloved, very nice weatherman here in Chicago. It’s almost like complete opposites.
Twice Removed
Love watching intelligent people scam the average
Christopher Ibarra
Idk, halfway through I thought “man, how can these people think that this is going to end well?” But then I though, there are people who think they can do whatever they want and get away with it. They aren’t normal people. They are the most entitled and greedy of society. So it kind of makes sense why normal people wouldn’t do the dumb things they did.
Alan Garland
“Investors became nervous”. Yep. that nails just about all of human misbehaviour.
Bill Jacobs
I never knew they were trading weather. It’s even more interesting if you know Tom Skilling, a TV meteorologist for WGN news is Jeffrey Skillings brother.
Buzz Pedrotti
I wonder if the abuses of Texas Enron underlie the current shortages in the Southwest. Or it is just a poorly selected design basis rare event.
B dot Allen
Life without parole for ALL of these thieves.
Inspire Wire
I guess you could say Skilling tried making a killing for Enron
Gets sentenced to 24 years, serves half, and gets to start all over again where he’ll probably try to pull the same move again. Isn’t America amazing
Robert T
Some day soon we will be watching: “Cold Fusion-Biggest Scam in History.”😭
Years gone by and it seems that we don’t have a single reporter asking right questions how is it possible for a stock market go up during a global depression.
The Theranos fraud really is the child of the Enron fraud… the similarities are unbelievable
My economics teacher in highschool made us watch the documentary about this. Needless to say it was the only thing I can remember learning about from that class.
Procookie Cat
Still wondering what would have happened if they had sealed the partnership with Blockbuster
C.K. Wells
I remembered hearing about this on ABC at 8 or 9 years old
Hendrik Roux
Mr ColdFusion… you are a hero.. a talent the world needs so much right now. PS I would love to meet you one day… I am also from Africa and also in Australia now
Edward Arruda
You must read “License to Lie” by Sidney Powell. It will open your eyes on the USDOJ railroading of the Merrill Lynch bankers over the Barge deals. Otherwise this piece you produced is one sided. Also, Arthur Anderson was railroaded by violating a law that didn’t exist. After the debacle a law was passed which requires corporations to maintain all documents it produces.
xoxo chann
my jaw dropped at them manipulating the power causing blackouts, the gov was compliant
Michael Mcgowen
No autopsy and the coroner’s report was private. He’s alive living abroad.
Jim N.
Surely there are better examples of Skilling’s recklessness than “a few stiches.”
Steve Tran
All the CEOs of each and every big company know its own company inside and outside inch by inch and for these clowns of Enron to say that they don’t know anything until they have to speak in front of Congress is total BS.
Anytime someone says their goal is to change the world you know it’s a scam
This is one of the very few things I admire about Americans, people sometimes ask questions and shit like this gets to be known by the whole world, if this happened in my country, nothing would be done about it.
nikhar prakash 33
The daughter of the vice president of this company ( mr holmes) had a daughter who went on to make another company people remember as theranos which was also a scam and she got convicted
Alex Korocencev
And I thought Theranos was the biggest scam. I love those videos! Keep it up
Lawrence Keller II
If I was Skilling , I’d always be looking over my shoulder , many many people haven’t forgotten the misery he’s caused them .
Dr. Rebuttal
They did eventually succeed in getting people to ask why
Great vid man liked how you wrapped it up
Dana Velasco
“Cheers guys, have a good one.” What an Aussie.
Dustie455 hairtrooper
Imagine trying to make a energy company after your last one cause tens of thousands to lose their jobs and put most of your associates in jail and made one of partners commit suicide
Good thing Enron 2 succeeded thanks to the incredible atrioc gambit.
jose carlos
Both Elizabeth Holmes and Jeff Skilling uttered the same statement: ” we will change the world”…indeed they did.
David Mendez
The Terminator: gets elected Skilling: “why do I hear boss music?”
john patrick
While it’s impossible to over-expose this scandal …. it does appear the makers of this video shamelessly use “The Smartest Guy In The Room” as a blue print for this more abbreviated version.
Jeff Lanton
These are smart people. I want to learn from them.
A shocking and gripping story.