The Tide Goes Out - Is That a Howard Marks Coil?

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The Enron stock starts falling from the all-time high in the fall of the previous year, just above $90 a share, falls down into the 40s. It's lost over half its value. This is after this when news and speculation about the California power market manipulation starts coming out. And PG&E files for chapter 11 bankruptcy in April of 2001, too. So things are starting to burst. That's affecting the market. When the tide goes out, you see who's swimming without their swimming trunks on.

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.