The particular causes of Enron's failure

The particular causes of Enron's failure are complex. There are lots of issues that have to do with the Enron collapse. Enron is a company that was called as Houston Natural Gas and then Enteron. It becomes politically connected player in the new deregulated market of energy. At one time Enron appears to have been a successful and innovative enterprise, principally engaged in trading and dealing in energy-related contracts. At some point it expanded by …

…accounting led to a restatement of earnings and a collapse that cost its shareholders some $1.2 billion in equity. The charges also mention former treasurer Ben Glisan, who pleaded guilty to conspiracy and became the first former Enron executive put behind bars. Skilling has consistently insisted he did nothing wrong. In testimony before the House Energy and Commerce Committee two years ago, he blamed Enron's demise on a liquidity crisis caused by a decline in confidence.