Enron: The Rise and Fall

"I'd say you were a carnival barker, except that wouldn't be fair tocarnival barkers. A carnie will at least tell you up front that he's running a shell game. You, Mr. Lay, were running what purported to be the seventh largest corporation in America."-Senator Peter Fitzgerald (R-IL) to Enron CEO Kenneth Lay, Senate Commerce Science & Transportation's Subcommittee, Hearing on Enron, 2/12/02
The speed of Enron's rise and fall is truly astonishing and perhaps the single most important story of corporate failure in the twenty-first century. In Enron investigative journalist Loren Fox promises readers nothing short of the most compelling and insightful investigation into Enron's meteoric ascent-regarded by Wall Street and the media as the epitome of innovation-and its spectacular fall from grace. In a lively and authoritative manner, Fox discusses how the biggest corporate bankruptcy in American business history happened, why for so long no one (except for an enlightened few) saw it coming, and what its impact will be on financial markets, the U.S. economy, U.S. energy policy, and the public for years to come. With access to many company insiders, Fox's intriguing account of this corporate debacle also provides an overview of the corporate culture and business model that led to Enron's high-flying success and disastrous failure. The story of Enron is one that will reverberate in global financial and energy markets as well as in criminal and civil courts for years to come. Rife with all the elements of a classic thriller-scandal, dishonest accounting, personal greed, questionable campaign contributions, suicide-Enron captures the essence of a company that went too far too fast.

"The Enron story, with all its moving parts, is a tale of genuine achievement, but also of arrogance, ambition, and deceit. It's the story of how so many people and agencies missed the cracks in Enron's facade, in part because the system was set up that way. In short, it's the story of how American capitalism worked at the close of the 20th century."

-Excerpt from the book

In the high-stakes casino that is the global energy market, Enron was the House. Its power was unrivaled, its reputation for innovation unquestioned, and its future as dynamic as the markets it dominated-until October 2001, when Enron began an implosion that ended in the most dramatic bankruptcy in U.S. history.

Enron: The Rise and Fall is the first behind-the-scenes recounting of the day-to-day machinations that gave Enron its power and fueled its demise. Both an in-depth exploration of what actually happened behind the walls of Enron and a candid examination of the flaws in Enron's business plan and corporate culture, this unauthorized corporate biography paints a vivid portrait of what happens when a company is allowed-in fact, openly encouraged-to live far beyond its means.

From the powerful executives whose hubris virtually guaranteed Enron's demise to the regulators and Wall Street professionals who turned a blind eye to Enron's excesses and red flags, seasoned business reporter and energy industry expert Loren Fox explains how Enron's bankruptcy happened, why so few saw it coming, and what its long-term impact will be. Interviews with former Enron insiders combine with information from public records and documents to discuss:

* Enron executives' unprecedented access to the White House-and George W. Bush himself

* Enron's instrumental role in precipitating California's electricity crisis

* Fateful-and fatal-decisions made by auditing icon Arthur Andersen

* Lessons managers in every industry can learn from the Enron debacle

Enron: The Rise and Fall is a revealing portrait of the rewards that come from true innovation, and the disasters that can occur when that innovation is accompanied by unfettered recklessness and greed. As well researched as any investigative report and as entertaining as the latest Hollywood release, it provides a rarely seen glimpse into America's corridors of power-and depicts the ultimate example of how corporate responsibility failed investors.

LOREN FOX is a former senior editor at Business 2.0, the award-winning business magazine, and a leading authority on business strategy. Previously, Fox was finance editor of Upside magazine. He also spent five and one-half years as editor and reporter for Dow Jones News Service, where he covered the energy industry and Enron. His work has appeared in The Wall Street Journal, Barron's, Salon.com, and other media.