Consumerist: Enron

The 10 Biggest Chapter 11 Bankruptcies In US History

Meg Marco — Wed, 17 Sep 2008 13:11:18 EDT

CNBC has put together a quick slideshow list of the top 10 largest Chapter 11 bankruptcy filings in US history based on the pre-bankruptcy assets of the companies in question. It really gives you a sense of the incredible scale of the Lehman Brothers filing — the next closest bankruptcy was Worldcom, which had $103.9 billion in assets before the filing — 535.1 BILLION DOLLARS less than Lehman Brothers. Damn.

10. United Airlines
Assets: $25.2 billion
Date Filed: Dec. 9, 2002

9. Pacific Gas and Electric
Assets: $29.8 billion
Date Filed: April 6, 2001

8. Global Crossing
Assets: $30.2 billion
Date Filed: Jan. 28, 2002

7. Refco
Assets: $33.3 billion
Date Filed: Oct. 17, 2005

6. Financial Corp. of America
Assets: $33.9 billion
Date Filed: Sept. 9, 1988

5. Texaco
Assets: $35.9 billion
Date Filed: April 12, 1987

4. Conseco
Assets: $61.4 billion
Date Filed: Dec. 18, 2002

3. Enron
Assets: $63.4 billion
Date Filed: Dec. 2, 2001

2. Worldcom
Assets: $103.9 billion
Date Filed: July 21, 2002

1. Lehman Brothers
Pre-Bankruptcy Assets: $639 billion
Date Filed: Sept. 15, 2008

Biggest Chapter 11 Cases [CNBC]
(Photo: epak )

Enron Class-Action Suit Killed By Supreme Court

Chris Walters — Tue, 22 Jan 2008 16:54:58 EST

Today the U.S. Supreme Court effectively killed off any chance of a $40 billion class-action lawsuit against the investment firms that did business with Enron. The suit charged that the Wall Street firms were complicit in Enron's massive corporate fraud fiasco. The Supreme Court, however, just ruled on a similar case last week and found that "third parties - vendors, contractors and consultants such as banks, accountants or attorneys - can't be sued over corporate fraud unless investors relied on them when making their investing decisions."

"Enron Holder Suit Against Wall Street Rejected By High Court" [CNN Money]

Anybody Wanna Buy An Enron CEO's Desk?

Meg Marco — Thu, 22 Mar 2007 11:12:48 EDT

Desks belonging to Ken Lay and Jeffrey Skilling are up for auction on eBay with the proceeds going to help a Houston-area animal charity. From CNNMoney:

Lay and Skilling, who also served as CEO, were convicted in May 2006 for their role in the accounting fraud that led to the collapse of Enron in 2001. The bankruptcy erased billions in investors' money and wiped out the pensions of thousands of Enron employees.
The custom-made desks with "an elegant Makore Pommelle veneer" have a minimum bid of $25,000 each, which so far has not been met. The auction began Friday and runs for 10 days.

Skilling is currently serving a 24- year prison term. Lay passed away last July. The desks were donated by the firm that bought Enron's former headquarters.—MEGHANN MARCO

Enron Founder & CEO Ken Lay's Custom Office Desk [eBay]
Ken Lay's desk goes up for grabs [CNNMoney]

Corporate-Wrongdoing Rules Eased, Yay!

Ben Popken — Wed, 13 Dec 2006 10:36:47 EST

Remember how Sen. Specter wanted those corporate-wrongdoing rules eased last week? Yesterday, his wish came true. In the wake of the 2003 Worldcom scandals, federal prosecutors received new powers in the form of guidelines written by then deputy attorney general, Larry D. Thompson.

However, under the new rules enacted Tuesday, federal prosecutors...

"...[W]ill no longer have blanket authority to ask routinely that a company under investigation waive the confidentiality of its legal communications or risk being indicted. Instead, they will need written approval for waivers from the deputy attorney general, and can make such requests only rarely."

Fine and good. Attorney-Client privilege is sacrosanct and its protection should not be penalized.

Are prohibited, "...from considering, when weighing whether to seek the indictment of a company, whether it is paying the legal fees of an employee caught up in the inquiry."

Ambivalent. On the one hand, it's noble for an innocent company to stand behind its employees. On the other, it's clear that a guilty company could be leverage its resources to unduly protect its interests. Perhaps too the company-paid lawyers would defend in a way that favored the company over the employee. Not to mention a strong parallel with a little thing called "hush money."

In the wake of recent and rampant corporate improprieties, do corporations really need protection?

In limited instances, like particular overreaches by the Thompson memorandum, yes, if we want to preserve what we're prosecuting in the first place: Justice. — BEN POPKEN

U.S. Moves to Restrain Prosecutors [NYT]

Previously: Senator Wants Corporate-Wrongdoing Rules Eased

Senator Wants Corporate-Wrongdoing Rules Eased

Ben Popken — Fri, 08 Dec 2006 10:42:13 EST

Sen. Arlen Specter wants to ease the guidelines that helped nail Enron and Arthur Anderson.

Yeah, because federal prosecutors were so mean to those iniators of the California blackouts. When you think about it, America would be so much better if Enron never collapsed. We would feel better about ourselves as a nation, strengthened by common myths. — BEN POPKEN

Senator Calls for an Easing of Corporate-Wrongdoing Rules [NYT]

The News; Enron Curses All Who Penetrate Its Tomb

Ben Popken — Thu, 13 Jul 2006 11:54:53 EDT

• Bizzare, inexplicable, random act of violence. [NYT] "Man Tied to Enron Case Found Dead in London Park"
• They don't call fashion superficial for nothing. [LAT] "Illusions on Sale in Shanghai"
• In the future, you can have any cellphone company you like, as long as it's black. [LAT] "AT&T, Verizon Mergers Face Competition Concerns"
• "Ken Lay was neither black nor poor, but he was a victim of a lynching." Yeah, and Pol Pot was a civil rights activist. [CT] "Dignitaries Turn Out To Memorialize Man Who Founded Enron"
• A day after McDonald's pulls theirs, Wendy's announces plan to offer an even spicier chicken sandwich than ever before. Sluts. [CT] "Wendy's spices up chicken sandwich"
• Personally, we're a slut for love. [NYT] "The Taming of the Slur"

The News

Ben Popken — Tue, 11 Jul 2006 13:46:34 EDT

• You know "Anarchy goes better with Coke," is the headline they really wanted. [NYT] "Even Statelessness Goes Better With Coke. Or Does It?"
• Hardly what you would call a splintered ruler. [LAT] "AT&T to Pay $550,000 to Settle Privacy Cases"
• Every swipe buys another bullet for Chairman Mao! [NYT] "Borrowing Rises as Credit Card Use Jump"
• Boring complainers elicit smaller sympathies, study we just made up shows. [NYT] "They Sure Beat the Airlines, but Hotels Could Still..."
• There's danger beyond the mere ignominy of driving a focus-group tested toaster oven. [CT] "Scion 'moonroofs' subject of safety probe"
• If you can't have Lay, there's always other chips to go with the fish. [CT] "Enron-related case means test for new treaty"

All The News That's Fit To Self-Immolate

Ben Popken — Mon, 10 Jul 2006 12:05:14 EDT

• Grocers hate it when their loss leaders have no followers. [NYT] "Sale Shoppers Annoy Grocers as They Save"
• Burning smell noticed by large newspaper. [NYT] "Dell's Exploding Computer and Other Image Problems"
• People noticing distinctive fish smell from Lay's coffin are noticed by large newspaper. [NYT] "A Sense of Something Rotten in Aspen"
• 100 years after its first publication, does The Jungle suffer from misleading packagaing? Perhaps a lack of oxygen to make it look more Red? [Slate] "Welcome to The Jungle"
• It's like that children's game, would you rather have your hip disintegrate, or your jaw? [CT] "Lawyers gear up to attack Fosamax"

Ken Lay Predicted His Own Death

Ben Popken — Wed, 05 Jul 2006 22:40:58 EDT

The official Ken Lay info page, besides being a prime example of Web 1.0 brochureware, has a letter to visitors penned shortly after the trial's conclusion. In it, he expresses surprise and shock (twice) at the outcome, some blah blah blah, and then, his belief that this is all part of God's plan. In light of Ken's recent "demise," the concluding paragraph runs rife with irony and foreboding.

You were too good for life in prison, Kenny-boy. God loves you back, so much so that he couldn't wait to look down and see you dancing on the devil's pitchfork!

(Thanks to Chris!)

We Demand Kenny Boy's Blood

Ben Popken — Wed, 05 Jul 2006 17:37:29 EDT

So, it seems that some people don't think Ken Lay is actually dead.

Somehow, a man who raped and pillaged and twisted every conceivable transaction into a lucrative financial instrument and defrauded billions, seems capable of faking his own death to avoid a life sentence! For shame. Let the man rest in peace and accept the lack of details as part of the family's request for privacy and circumspection in this tragic event.

Although, suspiciously enough, he does have a new blog...

The News; Bury My Lump of Coal Under the Old Apple Tree

Ben Popken — Wed, 05 Jul 2006 11:43:40 EDT

• Saying it was due to a broken heart would require he had one in the first place. [NYT] "Kenneth L. Lay, Ex-Chairman of Enron, Dies"
• Half speculative litigation, half, "why don't you just stop making shit that disintegrates people's jaws?" [LAT] "Another Merck Drug Is Under Legal Attack"
• If you have a box containing thousands of your co-worker's social security numbers, it's increasingly becoming a bad idea to bring it home. [LAT] "Employees Sue Railroad Over Social Security Number Theft"
• BP oil contains black soylent green. [CT] "Jackson Leads Anti-BP March Near Refinery"

The News; Impotent Indignation

Ben Popken — Wed, 21 Jun 2006 13:02:08 EDT

• The street price of Cialis is on the rise. "Drug Prices Up Sharply This Year" [NYT] [pic]
• Egalitarianism has left the airport. "Southwest to Try Seat Assignments" [NYT]
• Because pedophiles find it so hard to lie about their age online. "MySpace to Add Restrictions to Protect Younger Teenagers" [NYT]
• Son of Enron aborted. "Accounting Industry Loses Bid to Relax Rule"[LAT]
• For the Second Coming, Jesus should overturn the Cingular phone dealer's tables. "Court Upholds Fine of Cingular" [LAT]
• The news is not that a data breach at VISA had a data breach that caused consumer's debit cards to get stolen, it's that they're actually finally formally announcing it. "Visa Says ATM Breach May Have Exposed Data" [CT]

The News: All The Fat That's Fit To Print

popkin — Fri, 26 May 2006 10:45:14 EDT

• Ken Lay: "This is not the outcome we ~~paid for~~ expected." [LAT]
• McDonald's milkshake foams at the mouth over mounting outcry, plans to fight criticism over deceptive marketing with stronger, even more deceptive marketing. [Tribune]
• Flames burns brightly in the eyes of devoted Weber Grill fans. [LAT]
• FCC to examine TV station's use of PR reels as news. Due to backlog, the first questionable story to be looked is one touting the benefits of "Agent Orange Juice." [LAT]
• Hasbro cancels plans for line of racy dolls based around 'Pussycat Dolls,' switches focus to My First Little Lolita rollout. [NYT]

Enron Chiefs Found Guilty of Being Enron

popkin — Thu, 25 May 2006 14:48:52 EDT

Kenneth L. Lay and Jeffrey K. Skilling were convicted today on charges of fraud and conspiracy.

Does this mean we should start selling our Enron stock?

For those of you playing the home version of our , those big numbers in the pictures reflect their indictment counts.

"Obviously, I'm disappointed," Mr. Skilling said as he left the courthouse, "but that's the way the system works."

Yes, that's the way it works, wrongs are righted and the guilty are punished after their usefulness is spent.

"Enron Chiefs Guilty of Fraud and Conspiracy" [NYT]

Worst Company in America: Tier 1 Results

popkin — Mon, 06 Mar 2006 11:31:36 EST

Ladies and Gentlemen, your Tier 1 champions! Some no-brainers, squeakers and absolute pummeling.

Despite our best efforts to cast Target as an evil interloper, Walmart took the gold. Sprint barely beat Verizon by 18 votes, despite Verizon having such vaunted customer service. And in a surprise upset, the US government, despite not "officially" being a corporation, beat Enron by 169 votes! You go, girl!

We understand Tier 2 will be filled with trouncing. This is our first ladder we've ever made, sorry. While you were betting on basketball, we were touching ourselves.

Having eliminated all the lesser of two evils, Friday's shakedown for Tier 3, will be hot.

We're talking Paris Hilton hot.

In other news, NPR's Marketplace says they're going to interview us this afternoon about this poll. This will be a great way to reach all those execs and vp's who can't read the New York Times. We wonder if we're allowed to bring in our own sound effects.

Round 8: Enron vs. U.S. Government

popkin — Fri, 03 Mar 2006 07:08:07 EST

The moment you've all been waiting for. Ladies and Gentlemen, we present the clash of the titans.

Previously:
Round 7: Google vs. Sony BMG - Round 6: Choice Point vs. Sallie Mae - Round 5: Jet Blue vs. Southwest - Round 4: Target vs Walmart - Round 3: Sprint vs. Verizon - Round 2: H&R Block vs. US Postal Service - Round 1: Halliburton vs. Monsanto - Round 0: Competition Ladder