Abstract
This paper states that it student council essay appears collusion in the deception at the highest levels is part of the factors that allowed Enron to create shell companies while making real personal essay writing techniques pdf wealth for its top executives and others. The author points out that two LJM partnerships-LJM and LJM2 Co-Investment LP-were meant to provide Enron with an earnings stream from sale of its assets as well as protection for a decline in value of any of Enron’s investments. The paper stresses that Enron is not by any means the first American business scandal: In the 19th century, lawmakers helped themselves by voting federal subsidies for railroad construction concerning the Union Pacific Railroad and got away with $23 million. Table of Contents The Stakeholders Friends in High Places Writing the Rules for the ‘Shell Game’ The Partnerships Themselves The Solution
From the Paper:
“It was not only banks, however, and not only Merrill Lynch, that was asked to participate in what appears to be Fastow’s scheme. In addition, the Dallas Morning News reported that “several Wall Street firms said Enron Corp. used the lure of future business to get them to invest in a partnership that led the company into America’s largest bankruptcy” (Landers, 2002). Enron former Treasurer, Jeff McMahon, had told Enron’s attorneys that several banks asked him to confirm that the LJM investments would give them an inside track on Enron business, a fact which, in itself, suggests that they really didn’t care if the businesses they were ‘investing in’ were real, as long as their investment gave them future access to Enron business for their banks. Later, McMahon noted that the promises the banks claimed they had received had not been fulfilled in at least one instance.”
