|
Enron : Climax of executive greed and deception
Page entitled :
Enron's sliding share price amid increasing insider selling
Content of this page is about :
How the Dabhol disaster and losses at Enron Broadband Services put pressure
on the share price, whose sliding was accelerated by insider sales, spelling
doom on Enron.
Extract :
... the most serious threat to Enron at that time was its falling share
price. The reason lay in the financial structure of Andrew Fastow’s special
purpose entities, which were all essentially guaranteed with Enron shares to
be issued in the future. As the Enron share price slid, the self-induced
spiral was suddenly headed down and the SPEs credit was rapidly impaired,
spelling doom on the corporation, as was forced to unwind these vehicles at
great cost ...
…
|
|
