1. RISE
1.1. Houston Natural Gas & Internorth Merger
1.2. Jeffrey Skilling, a consultant from from McKinsey & Co.: proposed the idea of a gas bank
1.2.1. creation of the division called Enron Finance led by Skilling which dominated the market for natural gas contracts
1.2.2. Recruited more associates fro top MBA Schools, one of which was Andrew Fastow
1.2.3. Enron became the major political player in the United States; Skilling became its COO
1.2.3.1. Acquired Portland General Electric Corp. for $2B.
1.2.3.2. Developed Enron Capital and Trade Resources; created a revenue of $7B
1.2.3.2.1. Creation of EOL
2. Fall
2.1. Started losing competitive advantage
2.2. increasing leverage ratio
2.2.1. tried reducing their hard assets to increase paper profits
2.2.2. Used SPEs
2.2.2.1. LJM Cayman LP, LJM2 co-Investment LP
2.2.2.1.1. Raptor Vehicles
2.3. Precipitous Fall of Enron stocks
2.3.1. huge cash shortfalls due to underperforming investments
2.4. Skilling appointed as CEO of Enron after Lay's retirement
2.4.1. Retired 6 months after appointment
2.5. October-December 2001
2.5.1. 16: Announced its first quarterly loss after taking charges o underperforming investments
2.5.2. 17: Changed plan administrator's for its employee's 401 k pension plan
2.5.3. 22: SEC investigated related party transactions
2.5.4. Nov.8: Restatement of Financial Statements back to 1997
2.5.5. Nov.30: stocks fall to 26 cents a share