Enron Was A Successful Multi Billion Dollar Company

Enron was a company that operated one of the largest natural gas transmissions networks in North America. At the top of its game, Enron was a successful multi-billion dollar company that marketed electricity and natural gas. Enron also provided financial and risk management services to consumers around the globe. Because of its success, Enron left many people astonished when it declared bankruptcy in December 2001. Twenty thousand employees were left without jobs and most had lost their entire life savings due to investing it in the company’s stock. In 1985, Houston Natural Gas Company and InterNorth, after federal deregulation of natural gas pipelines, merged to form a new company, Enron. Kenneth Lay had joined Houston Natural Gas before the merger as chairman and CEO. After the merger, Kenneth was appointed chairman and CEO of the newly formed company (Biography.com, n.d.). In 1990, Lay hired Jeffrey Skilling. Skilling’s job was to create a new business plan to get Enron out of the debt it had incurred during the merger of Houston Natural Gas Company and InterNorth. Skilling, who had a background in banking as well as asset and liability management, quickly rose to the top becoming COO in 1996 and CEO in 2001. One of Skilling’s business ideas was to create a â€Å"gas bank† for which Enron could buy gas from a network of suppliers and sell it. Enron would guarantee both the supply and the price to its consumer assuming all risks and charging fees for the transactions.Show MoreRelatedEnron Was The Largest Trader Of Electricity, Energy And Natural Gas1139 Words   |  5 Pagescollapse, Enron was the largest trader of electricity, energy and natural gas in the world. Founded in 1985 by businessman Kenneth Lay, Enron quickly became one of the largest corporations in America. 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