SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Enron - Natural Gas Industry
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: James Calladine who wrote (1272)1/11/2002 10:00:07 AM
From: inesa  Read Replies (3) of 1433
 
Fine. So loopholes exist and have for a long time. As you said this is nothing new. Why waste bandwidth with nonnews? If anyone can contribute real news, it would be insight into the process by which ENE was downgraded to junk. ENE was still profitable and operating as an important trader before they were downgraded. Who decided to put them out of business? Ratings friends of Gray Davis?

I do not know of any business where the players are as pure as newly fallen snow so I can't join a rag on Ken Lay this and Ken Lay that. But if I was Ken Lay's and ENE's enemy, I would analyze where the weak points are. One weakness I would note would be a short loan position with insufficient cash. Then I would determine the conditions by which those loans could be called sooner. I would also assess ENE's financial backing such as J.P. Morgan Chase to understand whether they were in a position to rescue ENE from the loan calls.

I believe Ken Lay and ENE were targeted because Ken Lay (like the Vichy in WWII France) would side with whoever was in power at the time and because he participated in the California energy squeeze. He called the White House for help when he saw it coming and they turned him down, not wanting to get involved in a scandal.

There are real victims from all this, but I don't think Ken Lay and ENE are the culprits. There are others behind the scenes that engineered this tragedy.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News