The Beginning of the End at Enron

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Enron's fraudulent practices are uncovered in 2000 by short seller Jim Channos and journalist Bethany McLean. Enron's CEO Skilling and others give conflicting answers to how the company makes money. McLean's article in Fortune questions the high trading multiple of Enron's stocks, but makes no accusations of fraud. Enron's financial statements are nearly impenetrable, and the company is rebranded as the world's leading company. Enron's slogan is 'ask why'.

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.