Enron's Trading Desk - A Trading Desk for the Energy Industry

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Enron was once a logistics company that moved natural gas from one place to another and charge customers for the services associated with that. Now it's more like an investment bank in this industry, says Ben Navarrette. The traders originally are there to sort of help match supply to demand; now they can quote spreads wherever they want. This is the securitization that you were talking about a minute ago, Ben.

The FTX fraud has dominated headlines now for weeks, during which we’ve debated if and how Acquired could uniquely add to the conversation. Then we realized there was an angle so perfect that we had to drop everything and enter Acquired research overdrive: Enron. Travel back with us to the granddaddy fraud of them all, 2001’s then-largest bankruptcy in US history and the impetus for the famous Sarbanes-Oxley Act. So much of Enron’s history parallels FTX that the uncanniness is almost unbelievable — right down to the same CEO running the two bankruptcies. Sit back and enjoy this crazy tale of villainy, greed, and the nature of humans and money. Maybe just don’t take notes on this one…

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‍Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.