Enron Bankruptcy Explained
Take a break from the drudgery with some of these jokes, song parodies, anecdotes and assorted humor that has been collected from friends & from websites across the Internet. This humor is light-hearted and sometimes slightly offensive to the easily-offended, so you are forewarned. I have taken care to censor "humor" with overt sexual overtones (or undertones) and hateful tirades, so it is all workplace-safe. I have also tried to warn of any links that will result in audio clips so you can take appropriate precautions. Please send any potential candidates for this humor page to the e-mail link above.
In case you were wondering how Enron came into so much trouble, here is an explanation reputedly given by a Colorado Aggie professor to explain it in terms his students could understand.
You have two cows. You sell one and buy a bull. Your herd multiplies, and the economy grows. You sell them and retire on the income.
Enron Venture Capitalism:
You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows. The milk rights of the six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company. The annual report says the company owns eight cows, with an option on one more.
Now do you see why a company with $62 billion in assets is declaring bankruptcy?
Someone e-mailed the picture to me, so I don't know it's origin. If the progenitor of it objects, I'll remove it.