Chapter 7 vs Chapter 11 Bankruptcy

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John Ray was brought in as the chief administrative officer who is currently serving the same role over at FTX. He comes in to basically be the administrator while it's in Chapter 11 to come up with a deal. John Ray got 13 billion out to creditors, which is about 36 cents on the dollar - much better than Stephen Cooper's plan called for. The chair of the audit committee of Enron's board during all this was going on was the dean of Stanford Business School.

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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