The Enron Scandal of 2001: The Greed and Deception Which Caused It
Anthony Ambrosius Aurelius
“It took Enron 16 years to grow from $10,000,000,000 ($10 billion) in assets to $65,000,000,000 ($65 billion) yet it only took a mere 24 days to go bankrupt. Enron was the U.S.’ 7th largest corporation during the 1990’s and early 2000’s, with pundits praising the company as a new business model. Political conspiracy was correctly considered to be evident by many as Enron was the largest corporate contributor to the first presidential campaign of President George W. Bush.
Kenneth Lay, the founder, Chief Executive Officer, and Chairman of Enron, was a person who grew up in retched poverty forcing him into working various jobs as a child. Lay was the son of a Baptist preacher and because of the abject poverty he was born into, he recalls dreaming about the life of a business person while sitting on a farm tractor as a young boy.
Lay had a doctorate in economics and was an early supporter of deregulation, promoting this cause long before virtually everyone else. Ronald Reagan’s aggressive deregulation policies allowed Lay to open Enron in 1985. Lay believed that through a merger of vast networks of natural gas pipelines, Enron would become poised to take advantage of the Regan administration’s decision to allow fuel prices to float with the currents of the open market.
Lay was closer to George Bush Sr. but while his son George Bush Jr. was governor of Texas, United States of America, the two often exchanged favors by connecting eachother with the correct people to make change occur, an unprecedented act in U.S. political history as this was by far the most important major relationship between a presidential family and a single corporation.
Lay constantly enrobed himself in a cloak of moral rectitude stating on record “Enron is a company that deals with everyone with absolute integrity. We want people to leave a transaction with Enron thinking that they’ve dealt with, [sic] in the highest possible way as far as integrity and truthfulness”.”