What have we learned from Enron?

20th October 2011

The collapse of energy giant Enron did not directly cause death. But it ruined many employees, especially those with pension plans focused on Enron stock, and directly or indirectly cost trillions.

It ruined Arthur Andersen, the worldwide accountancy firm whose "magic circle" presence had been a fixture for years.

In business and financial terms, Enron was as huge a shock to investment confidence as it is possible to imagine.

And because of its previously heroic growth and importance in the economy of  the very conservative state of Texas, its final December 2001 bankruptcy eclipsed other failures such as the end of the Madoff Ponzi in 2008 or the

Worldcom accounting scandal in 2002.

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