Enron: The Smartest Guys in the Room (2005) Edit

A balance sheet or a cash flow statement with their earnings

A billion dollars of their stock in the preceding several months.

A certain kind of accounting known as mark to market.

A core cadre of Enron guys used to go on

A couple of Texas oilmen shared his views

A Democratic Senate forced FERC to impose regional price caps.

A flurry of buy outs in the corporate world...

A hundred and thirty two million dollars is what he made.

A little later today I will.

A lot of people around Washington D.C.

A lot of them were former nerds and including Jeff Skilling.

A new corporate vision.

A new way to deliver energy.

A pall fell over the table.

A reporter with Fortune magazine,

A thousand dollars?

A top executive at one of America's biggest power

A veteran trader, Mike Muckleroy,

About a million dollars or less in liquidity.

About all the ways that the fund is gonna profit.

About Enron the week before.

About is we're wheeling power out of California.

About September the eleventh.

About the president of the company,

About the risks that were taken.

About the traders' behavior.

About the ways human nature is steered by greed

About what the objectives of the company are

About who the guy was who led them there.

Absolutely. Don't you guys agree?

Absolutely. Don't you guys agree?

According to published reports,

Advantage of the government's decision

After Enron's best interests or their limited partners.

After he got a divorce from his wife,

After Skilling resigned, Enron's chairman,

After Valhalla Ken Lay maintained that

Afternoon or evening. And it was scary.

Again over the next year to eighteen months.

Ah, it was to sell energy services to end users,

Ah... at this time there has been a suicide note located.

Alan, with our sincere thanks and admiration,

All of a sudden began to play in the stock market,

All of the Enron executives were saying,

All sorts of questionable things;

All that money you guys stole from those

All the makings of a gigantic scandal.

All the various lies and artifices

All through the summer, the stock continued to decline.

All too easy.

Almost all of the Wall Street analysts

Almost everyone knew the story.

Almost heralding a new era of... of corporate enterprise.

Almost meek individual that maybe these...

Alright, we're down to questions.

Also know as the Valhalla Scandal.

Amanda Martin was one of the first executives hired

America's oldest accounting firm fell along with Enron

Americans are making a lot of money in stocks.

Amounts of consternation all across Wall Street

An arbitrage opportunity has been defined to me

An attorney from Vinson & Elkins,

An established way throughout the 1990's.

An experimental subject and a real experimental subject.

Analysts in April, 2001.

Analysts were routinely getting large bonuses

And a creative trader is a trader

And a trail that led from the company's treasurer,

And about mid way through the session...

And affected everything about how Enron did business.

And afterwards,

And all the guys that were buyin' all this Enron,

And all the top people were movin' their money then.

And all the trinkets

And all the trophies of the world,

And all we know is, they're always good.'

And America's major banks put up as much as $25 million each.

And Andy Fastow turned around and looked at my editor and me,

And Andy Fastow were at working Wall Street,

And Andy is William Hurt.

And appropriate manner possible.

And as a consequence get a five million dollar bonus.

And as a result the price of electricity is

And as a result,

And as long as Enron continued,

And as such he spent hours poring over the new rules

And as that culture emerged,

And as the head of these funds.

And at that point it was no longer

And Barbara's too, that's what really matters.

And before long,

And by necessity,

And Causey and everybody,

And clearly had in mind that things could be better...

And clearly with a company that size

And Cliff came over to my house

And Cliff's issue had nothing to do

And come up with a reason to go down.

And competition in the service of passing on our genes.

And conspiracy to defraud investors.

And convened a meeting of friends

And decided to change himself.

And delivered it herself.

And end of year cash flows.'

And estimated how much they, the two rogue executives made

And everybody on Wall Street was looking for the next big thing.

And everything will turn out fine.

And Fastow had good reasons for not wanting to look bad.

And file workers were frozen.

And find you no matter where you go.

And fixated on a massive public relations campaign

And had a lunch meeting.

And had gone up over 50 percent the year before that.

And had no clue

And he busted a lip and required a bunch of stitches.

And he certainly wanted to please the boss.

And he didn't even have to be that smart,

And he helped promote Lay as

And he idolized Jeff Skilling.

And he just kept saying to me,

And he just took the piece of paper

And he knew that we were in a massive hole.

And he liked other people he thought of as visionaries.

And he looked back at me and he said,

And he looked out the window

And he pushed aggressively in Washington to change all of that.

And he said 'They're calling us child molesters.'

And he said,

And he says,

And he started working out, lost a lot of weight.

And he talks about the informational advantages

And he usually brought some of the traders along with him.

And he was a wonderful, wonderful man.

And he was ordained a Baptist minister

And he would do whatever it took to get them.

And he, throughout his life, worked several jobs as a kid

And help her understand the questions that she was asking.

And here you had Enron,

And high above each with a private staircase,

And his answer was, 'One word, California.'

And how completely artificial

And how different it could be from the way

And how you fit with those objectives.

And I believe we have it ready to go.

And I can't get into the details.

And I don't see that it's at all inconsistent that

And I don't want us to ever be satisfied

And I doubt that's what you're focusing on.

And I feel like I'm being consumed by this company.'

And I guess he had a little more foresight than we did.

And I guess they,

And I had come over to talk about whether or not

And I have to believe that,

And I kept pointing out, well,

And I often think about how clear my memory was about that event.

And I remember I made the comment to him,

And I remember saying to an investor

And I said, 'if you do that,

And I said, 'Jeff, you've got a real problem.

And I spill a little gasoline on myself

And I think it was the battle of holding these

And I think that's something that Enron knew better

And I think the flags

And I thought we didn't have to take over every plant,

And I told him that one of two things was going to happen.

And I want to show you a tape.

And I was concerned about the energy crisis

And I was probably too naive to suspect that it was anything...

And I was trying in the early days

And I'll never forget this.

And I'm excited.

And I'm not an accountant.'

And I'm saying, 'with all due... due respect,

And if deregulation were to collapse,

And if I had done enough homework,

And if I had questions, I didn't ask them,

And if I step on somebody's throat on the way

And if that meant leaving bodies behind him,

And if they came to this administration looking for help

And if they were fired what he could lose.

And if we had anything to do with this,

And in the middle of all this,

And it can happen again.

And it couldn't have just been a few executives

And it fed the whole macho culture of the place.

And it kills the scent.'

And it was all glass enclosed, and you would walk by there,

And it was appropriate?

And it was driven, very clearly,

And it was just almost all the time it was empty.

And it was just... it was very eerie.

And it was that he be allowed to use

And it was... it wasn't anything close to that.

And it wasn't clear from Enron's financial statements that

And it went lower and lower and lower.

And it would allow Fastow to conjure

And it's really a human tragedy.

And its banks for 20 billion dollars.

And its shareholders or with common sense

And Jeff Skilling one day kinda woke up

And Jeff Skilling was a person with the biggest ideas of all.

And Jeff understood those rules better than,

And let them just have a quote free market

And looking at it in a mirror and seeing

And looking, you know, it was, to me,

And Lou Pai dispatched his enemies

And Lou said, 'oh, I've got a secret'.

And M Smart, well so that's Maxwell Smart.

And managed to save the company.

And most were performing terribly.

And nobody there,

And now it's time we terminate Gray Davis.

And of course all hell broke loose.

And of course, as... as you said,

And once in place,

And one of them, as an example, was India.

And our chief accounting officer

And over that time,

And over time they became victims of their own hubris,

And Pai is out in Hawaii somewhere,

And pensions and then it peaked.

And people in far inferior positions to you

And pointing at the gun, the gun, the gun.

And Portland General's position on the west coast

And pour over maps of the western energy grid.

And probably gambling way beyond their limits.

And put it back on line.

And realize that you may have seen your shadow.

And regulations of government.

And roughly ten percent of people had to be a five.

And rumored as a possible replacement for Davis,

And said, 'I don't care what you write about the company,

And she had this wonderful article saying,

And she said, 'well, that's fine.

And so he set up this experiment.

And so it's like taking so much promise and possibility

And so when you're being evaluated by that group,

And some friends a bonus,

And sooner or later, I'll get you.'

And strongly argued against the imposition of

And that I was not ethical

And that in and of itself,

And that is, if it looks too good to be true,

And that made me angry.

And that took everyone by surprise.

And that was the beginning of a major cog

And that we were all being let go.

And that when you came up with an idea,

And that whole time since then, I put the maximum

And that's of course the suicide of Cliff Baxter.

And the best way we can is to be good citizens.

And the business is doing great.

And the captain of the ship was?

And the dancers and the tap dancing

And the deal with Blockbuster soon collapsed.

And the Enron traders never seemed to step back and say,

And the erratic behavior of its CEO

And the fact that he'd been sued civilly

And the internet technology stocks,

And the last lifeboats had long gone

And the maestro of all that at Enron was Andy Fastow.

And the next day we sat in this small,

And the other of feeling like it was all crumbling away.

And the people who were working

And the price for electricity went through the roof.'

And the reason he gave was that this was

And the representations of the company's management.

And the scientist only says

And the shocks increased with the number

And the technology works.

And the way he was doing it

And the West Coast traders made

And the world's sixth largest economy.

And then a week later someone else does it up

And then cash in their multi million dollar options.

And then deciding not to drink it himself.

And then he said, 'asshole'.

And then hollered up and said,

And then it just started going down,

And then Jeff Skilling took questions.

And then quite audibly

And then the next day...

And then they still keep full speed going.

And then, of course, we had a leader who imbued us

And there was no other explanation.

And there was no way anybody could prove that

And there were about a dozen assets that had been hedged

And there were all sorts of other problems

And there were plenty of them.

And there's a long office.

And there's this competition with the news...

And there's twenty minutes to get out.

And these were disclosed

And they are looking at the corporate culture itself

And they believed it was appropriate.

And they bump into a couple of icebergs,

And they did it, and they did it,

And they did it. And they made so much money.

And they should be.

And they took a particularly memorable trip to the Baja

And they were saying that we're going to sell

And thirty eight billion dollar budget deficit,

And this emperor was pretty powerful.

And this just caused unbelievable

And those people were supposed to be fired.

And to be reviewed and to be superior...

And to Skilling's future.

And to start a business from scratch.

And tucked it under the pile of papers on his desk.

And turned it into an ideology.

And twenty nine thousand people lost their jobs.

And very... it left it open to manipulation.

And wanted things to be better.

And was her article critical?

And was the guy out selling deals to energy companies.

And was the sole agent of the apocalypse,

And was very excited but within a year

And was very reliable was all of a sudden

And we all had some really nice looking 401ks

And we could not access it.

And We had got Mark to market accounting treatment.

And we were just now on the sinking ship.

And we're fucking making half a billion dollars for Enron.

And we've been absolutely upfront with the analysts.

And we've really pulled out all the stops.

And what came out later that was so bad,

And what can we do to prevent this sort of thing

And what's he have to show, at the end day,

And wiliness could out think the way

And yet it was reporting profits.

And you can take the videotape to mean

And you can tell from the response of the stock market

And you have to cheat a little more to

And you know I didn't ask myself why enough;

And you make appointments to the Federal Deregulatory Commission.

And you mentioned he was your best friend

And you really can lose your soul in the midst of this.

And you want us to believe

And you were gonna do whatever you had to do to stay there.

And you're going to go far, my boy.

Andersen shredded more than one ton of paper.

Andy as Chief Financial Officer of Enron,

Andy Fastow pled guilty to conspiracy to commit wire fraud.

Andy Fastow was Enron's chief financial officer.

Andy Fastow would go; Ken Rice would go.

Andy Fastow would not have put his hands

Andy Fastow, that betrayed that trust

Andy has operated in the most ethical

Andy put me in charge of this asset listing.

Andy was very young.

Andy, in many ways,

Andy, in many ways,

Announcement was going to take place.

Another day, another record.

Any analyst who didn't buy the company line

Anything could be accomplished And then the bottom line

Anything Enron told them.

Anything more than that.

Apparently we have all been wrong,

Appeals for federal price controls.

Appeared in a conference call with

Are not the most tightly controlled,

Arnold Schwarzenegger.

Arthur Andersen and our lawyers

Arthur Andersen had signed off on it.

Arthur Andersen signed off, and the SEC approved it.

Arthur Andersen,

Arthur Andersen,

Articles revealing Fastow's murky deals.

As a financial services company in effect,

As a result of deregulation?

As any opportunity to make abnormal profits.

As being a very stable place

As collateral for a lot of these things.

As doubts began to surface about the company

As Enron legend... has it,

As far as I was concerned.

As far as integrity and truthfulness.

As far as the operation's concerned.

As I said from the very beginning of my administration,

As I understand it, you called him an asshole.

As long as a company met or exceeded

As long as you can keep the perception going on,

As soon as the numbers got high enough.

As the fraud is perpetuated,

As the prime place to experiment

As Web based trading boosted its wholesale energy business.

As you can see foresee,

As you would expect,

Asked by the Bush administration to join his administration.

Asked him a very important question,

Assiduously stayed away from.

At a company called Enron Oil?"

At both the wholesale and retail level nationwide."

At Enron that made this happen.

At Enron,

At Enron.

At Lay and Skilling and Fastow

At least reported profits at the company.

At least when the Titanic went down,

At the board meeting,

At the end of it he says 'Well,

At the peak I had about 348 thousand.

At the right fuckin' price.

At the same time.

At the time, Gray Davis was a likely candidate

At the very moment Ken Lay was talking to employees,

Auditors were brought in as well,

August fourteenth 2001,

Back that Enron,

Baddest house in town.

Based on the protection afforded me

Baxter was a very bright guy,

Became an enemy of Enron.

Because a free market is God

Because all it had to do was do nothing

Because Enron needs the capital, number one.

Because he needs to go to Hollywood.

Because he sold all his stock in Enron

Because he understood that

Because he was mentioned in my memos

Because he'd cashed in for about

Because I didn't want to know the answer.

Because I had informed the company

Because I had told him myself.

Because I hadn't done enough homework.

Because I think people lost their sense of morality.

Because I thought,

Because it was all too easy;

Because it's all about the rationalization

Because it's going to be a long time

Because Ken Lay did in fact know about this thing.

Because like most things that end terribly,

Because Lou Pai was not a man to trifle with.

Because no human being should be put in a situation where,

Because nobody could fail.

Because otherwise some lesser man was taking the profits

Because people perceive it as a story

Because people thought,

Because stock prices were just going up and up and up.

Because the numbers just didn't add up.

Because they thought it was this traditional and,

Because this LJM partnership existed

Because this was,

Because you know. I mean, that's what we do.

Because you make money by taking risk.

Become the largest marketer of electricity and natural gas

Before he died,

Before I have to be in a meeting.

Before scruples rather than reacting

Before we trust you again.'

Began the unraveling of Fastow's complex partnerships.

Begin to cheat a little bit.

Begin to convince the ringmaster,

Behind Fastow's partnerships

Being CFO of Enron.

Belden's strategies to game the California market

Best thing that could happen is fucking an earthquake.

Between a sidewinder and a timber rattlesnake.

Between legislators and free market advocates.

Beyond the financial issues,

Blame the energy crisis on Gray Davis?

Bonuses to executives based

Borget and Mastroeni were summoned to Houston.

Borget was convicted of fraud, and spent one year in jail.

Boy, I didn't expect that.

Broad based economic progress in the shortest period of time

Brought them together at the Peninsula Hotel

Burn, baby, burn.

But a lot of who Cliff was tied up in how

But as far as any other indications of why

But at times designed, advanced and profited from them.

But Enron had failed to see something basic.

But Enron managed to disguise that fact.

But Enron Oil always seemed to win,

But for the second day in a row,

But he had one specific condition

But he really did remake himself

But he took another 30 million out,

But he was a manic depressive.

But he's also a guy who is radically different

But how do you keep your wife

But I can tell you that there isn't a legislator alive

But I didn't mention them in the story I wrote,

But in other places in the world, in India,

But in reality it's a story about people

But in reality, profits weren't going up;

But in the case there was at least one,

But in the end, I couldn't prove that

But it made them feel good as men.

But it will finally put these issues to rest.

But Jim Chanos mentioned to me that I should take a closer

But Ken Lay had a trump card.

But Ken Lay had known all along

But Mr. Skilling you don't believe that.

But no one who was supposed to say no said no.

But now we do.

But one investor saw something in Enron's numbers

But people who knew him said he became

But regrettably,

But thank you.

But that wasn't the case at all.

But that's got all the earmarks of being a run.

But the real money was made by betting

But then a question was asked to Tom White,

But then it was arrogance,

But then somehow, miraculously,

But then the next quarter comes along

But then their luck changed.

But there isn't any doubt

But there was one episode, early on,

But they don't have to show the debt on the balance sheet.'

But they pitch it almost as a new economic religion.

But to sit down with the reporter on that story,

But two rolling blackouts.

But we all thought that Ken Lay was leaving

But we couldn't.

But we know that Ken Lay's pitch was

But we're managing them.

But what was clear is that something didn't add up.

But when they do survive, it's when they come clean.

But while he was governor of Texas

But with the magic of mark to market Enron

But within a week I was meeting with Ken Lay.

But you don't see anything wrong.

But you have to be willing to say

But you have to take a long, cold look at yourself and say,

Buy recommendation and loves us at the same time

By acting fast, Muckleroy bluffed the market,

By all accounts, Enron was soaring.

By and large, the analysts admitted to us,

By Enron's collapse, Ken Rice had sold 53 million.

By Fortune magazine as the most innovative company in America.

By giving Jeff a call,

By hiding the fact that Enron was

By Jeff Skilling and became part of his inner circle.

By making wild bets on the market.

By pretending to purchase an existing Enron asset

By the employees. I mean, this was, you know,

By the end of the quarter.

By the end of the year 2000,

By the end, the traders ran Enron.

By the Enron bankruptcy than Ken Lay.

By the name of Andy Fastow.

By the now Democratic controlled Senate where here...

By the profits every single quarter.

By the time they agreed to meet our price,

By the way, everything is going to be just fine.

California was selected by Enron

California, it never deregulated.

California's deregulated system was a bizarre compromise

California's Electric Utilities

California's system was little more than a joke.

Calling Cliff Baxter or yourself or anybody

Calling publicly an investor an asshole? '

Calls Ken Lay, Kenny Boy?

Can you believe that?

Can you bring it back up in 3 or 4 hours?

Capitulating to the demands of the energy

Captains of a ship too powerful to ever go down.

CEO's generally,

Charting the futures of energy and power.

Cliff and Andy have had a... they didn't like each other.

Cliff Baxter 35 million.

Cliff Baxter committed suicide.

Clique that even the principal doesn't dare to reign in.

Come work for us.

Commit they did. And why not?

Committee will come to order.

Companies and utility companies, needs to put his foot down.

Companies rarely get away with cooking the books.

Companies received a raucous welcome in San Francisco tonight.

Compare that to the lineman who worked for a staid,

Consumers in California are angry.

Control's rotating attitudes are being implemented.

Could I predict a phony energy crisis

Could just yank the California economy

Could not release a balance sheet

Could once again near collapse.

Could see cracks in the walls,

Could we have a word with you real quickly?

Damn expensive to the customers.

Dark, windowless conference room for about three hours,

Dave, old buddy, let me just tell you.

Denigrating or tainting you,

Deregulation's Ambassador at Large.

Despite the rumors, despite the speculation,

Despite what the people of California

Details didn't interest Lou Pai.

Did Ken Lay and George Bush have a political agenda to

Did nearly as well.

Did you convert stock worth 66 million dollars?

Did you have any knowledge that this was happening?

Did you have many conversations with him?

Different, innovative;

Do deals with himself.

Do really bad things?

Do the new cheating to make up for the old cheating.

Do the weather guys get punished here

Do you believe that he didn't know?"

Do you like best, Jeff? '

Doesn't your wife then think

Don't just resign out of the blue

Don't look now but there's something funny going on

Drawn down 90 million dollars in the previous five days.

Dreaming about the world of business

Due to a classic run on the bank.

During his appearance at Commonwealth Club.

During the height of Wednesday's blackout,

Dynergy and Reliant stole from us and get it back to you.

Early on, George Bush, Sr.

EES was headed for a crash landing.

Effect the price of power? '

Effort called Enron Energy Services.

Either one of the trading partners

Either you get somebody who is on board with us as a strong

Enough to circle the Earth.

Enron and that he had been

Enron announced massive financial restatements.

Enron announcing a buy out of Portland General.

Enron declared bankruptcy.

Enron did it, and did it in a big way.

Enron essentially was losing money on a cash basis,

Enron had been the largest corporate contributor

Enron had vast natural gas operations all over the world.

Enron has found a way to stay ahead of the curve.

Enron hit the National psyche.

Enron is a big winner today

Enron is a company...

Enron is sort of a black box...

Enron is using its knowledge of trading gas

Enron itself was a house of cards

Enron loved analysts' strong buy recommendations.

Enron made sure that the joke would be on California.

Enron mounted a campaign to capture

Enron on line will change the markets

Enron on line, a fabulous, fabulous story.

Enron paid its advisers well.

Enron paid out multi million dollar

Enron posted a 30 percent jump in second quarter profits,

Enron should not be viewed as an aberration,

Enron was especially a big deal by the end

Enron was just recently chosen, again,

Enron was running out of ways to make

Enron was the nation's seventh largest corporation,

Enron would actually go bankrupt.

Enron would become a kind of stock market for natural gas.

Enron, buy stock today.

Enron, I'd never heard of 'em until they were gonna buy us.

Enron's accounting firm.

Enron's CFO, Andy Fastow,

Enron's law firm, Vinson & Elkins,

Enron's plant produced.

Enron's shareholders are suing Enron

Enron's stock began to fall.

Enron's traders were like the super powerful high school

Enron's traders who had erupted in cheers

Even ran a note up to Skilling, telling him to apologize.

Even the person with very little disposable income

Every day people call saying

Every week you have to come up with new ideas.

Every year, every day,

Everyone had a huge stake in seeing the stock price go up.

Everyone had their hand out at the table.

Everyone was on the bandwagon.

Fabric swatches for the new G5 45 million dollar corporate

Faces possible recall.

Facing 500 million in losses,

Failure was not an option.

Fastow can be seen selling LJM

Fastow created hundreds of special companies

Fastow had gambled Enron's future

Fastow had to figure out a way to keep the stock price up

Fastow knew what kind of deal he was offering as Enron's CFO.

Fastow was letting them gamble with Enron's chips.

Fastow was using Enron's stock

Federal price caps in California.

Federal Regulators are being pressured to act

Feel the tremors, feel the windows rattling,

FERC, the federal agency which regulates energy in America,

Fifty percent of the subjects were

Fighting against this. And it'd be alright.'

Finally. Great. Good to see you.

Financial condition.

Financial statements,

Fire crews had to free people trapped in elevators.

First raised questions about Enron's financial condition.

First, they presented falsified bank records to Enron.

Flew to New York at Enron's expense, to sit down,

For a small group of friends and customers.

For any of us involved.'

For any values except one, making money.

For awhile he was located on the 7th floor.

For decades kept all their money in the company

For Enron International.

For his years of hard and decent labor?

For maintenance on a single day

For many many commodities.

For Pai, it was all about the numbers.

For the deregulation of California's energy industry,

For the sixth year in a row

For weeks before a quarterly report

For X dollars per kilowatt.

Forget about this pipeline stuff,

Forty five dollar range.

Forty five thousand megawatts.

From 7 PM to 7 AM we're paying for bandwith that

From a hundred to a hundred and fifteen dollars a share.

From a seemingly legitimate source.

From about 10 billion of assets to

From choice and competition.

From Enron over the last four years.

From happening again.

From his LJM partnerships.

From several hundred million dollars down to

From smelling the strippers' perfume on you?

From the fraud and put it in their pockets.

From the idea that some greater man

From the investment banking departments to bring

From the standpoint of all the money

From the standpoint of Enron stock,

From when it was frozen to when it opened up,

Fueling wildfires and fears that California's strained power grid

Gained more than 100 points to close at 7895.81,

Gas in and gas out.

Gave Enron access to the newly deregulated market of California.

George W. Bush was only too happy to

George W. Bush, became president

Get out of here.

Get out. Go to jail.

Get rid of them and you know what,

Getting rich? Trying to.

Getting them off of Enron's books,

Go after him.'

Going through the various aspects of the company's business.

Good morning. How are you?

Good.

Got only 30 million in stock proceeds from Enron,

Government is not the solution to our problem.

Government is the problem.

Governor Pete Wilson and the California legislature

Gray Davis has terminated opportunities

Gray Davis, beset by an ailing economy

Great quarter and a great year in India.

Had a harder time admitting things were wrong.

Had been built over a pool of gasoline

Had built their own plush staterooms.

Had come up with in the past.

Had gambled so recklessly.

Had his eye on John Olson

Had signed off on Fastow's LJM funds.

Had taken a very hard look at this structure

Had to vote on them.

Had we known then what we know now about Enron's practices,

Has now been called to account for their crimes.

Have said that this is okay.

Have we seen the worst of it.'

Having Merill Lynch, if you will,

He actually left Enron with more money than anybody,

He actually talked about wanting to go on trips that

He agreed to forfeit 23 million dollars in assets.

He appeared to be distraught.

He became really, really agitated.

He called Lou Pai 'my ICBM.'

He came in and said There's a whole new world out there.

He can't be responsible for things

He can't stand it. I'm not going to kill that man.

He committed suicide, no we do not.

He could guarantee profits for LJM.

He didn't know about.

He found plenty. After the bankruptcy,

He gambled away huge sums of money before he was 20 years old,

He gets a big goose egg.

He got suckered into helping all the executives

He had a huge ambition to make wealth for himself.

He had been paunchy. He had big glasses.

He had been shocked that the traders

He had made more than $45 million dollars

He had seen documents that I think predicted the future.

He had seen the reports warning him

He had succeeded at Enron.

He has a sort of Cheshire Cat grin on his face as he talks

He ignored all the warning signs.

He instituted the system know as the PRC,

He just steals money from California

He kind of did some yelling in there.

He knew Mastroeni had another set of books,

He knew what was coming.

He liked people with big ideas.

He liked somebody with something extreme about them.

He met with Vice President Dick Cheney,

He obviously didn't share with me what he was doing,

He paid his attorneys a retainer of

He pitches them on the benefits of investing in a fund

He proclaimed, at one point,' I am Enron'.

He really believed that the idea was everything.

He replied, 'I'm fucking smart.'

He said that people who raise questions like this

He said, 'I like guys with spikes.'

He said, 'I stop in at a gas station on the way home.

He says, 'That will never wash off.'

He spent quite a lot of money there as well.

He thought was closest to Skilling, personally,

He told a story later about sitting on a tractor,

He was a huge risk taker.

He was extraordinarily talented at just doing a deal.

He was famous for saying once in Enron's early years,

He was general partner of LJM, while at the same time,

He was heartbroken by what had happened.

He was hired by Jeff Skilling probably before he was even 30

He was kind of like the invisible CEO.

He was losing his hair.

He was making all kinds of statements.

He was stepping down as the CEO.

He was the salesman of the group.

He was there every night after work

He was thinking about energy markets

He was way ahead of the curve on this.

He, he invited Arnold Schwarzenegger.

He'd always been a moody guy,

He's a guy that people describe as incandescently brilliant.

He's hiding something from the rest of us.

He's portrayed himself as somebody who has

He's the one that cooked the books.

Helped build the trading business in the early years;

Helped secure billions in government subsidies

Hence, this came to be know as 'Rank and Yank.'

Here I got this panic call that they had

Here's a document,

Hey John, it's Tim.

Hey, this is David up at Enron.

High prices are when it gets into the fifties.

High tech stocks led Friday's fierce sell off

His attorney maintains that no one has been hurt more

His exit from Enron was as mysterious as his presence there.

His job was to cover up the fact

His sentence was reduced to ten years

His view was that the Federal government

Hit California with a jolt.

Holy fuck, yes. You gotta love the west.

How a deregulated electricity market ought to work.

How about, you know,

How do you answer, sir?

How great would that be for all the players in the market?

How is that market developing?

How will you plead, Mr. Fastow?

How's this?

However, were not known at the time.

Hypothetical Future Value accounting.

I am not an accountant. And I could not answer them.

I am Sherron Watkins.

I am still doing counseling,

I and the board are also sure that

I asked Jeff Skilling,

I basically stood over Tom

I believe that the Citigroup professionals

I believe the only venue for me is the 'Ride of Broken Dreams.'

I call H, F, V

I can answer only for one. I can answer for Valhalla

I can get out now and this company

I can remember going into the old building,

I can't for the life of me see what basis she

I can't stand the pain. Let me out of here.

I continue to grieve, as does my family,

I could feel it. I could smell it.

I could into my 401 and savings.

I could say to you on your departure from Enron.

I could sense it.

I couldn't believe that so many people were going along.

I did not do anything wrong that was not in the interest

I did not know what he was doing,

I didn't ask managers why enough,

I didn't ask my colleagues why enough.

I do not believe...

I don't believe what?

I don't have the records with me...

I don't know if that number is accurate,

I don't know whether I'd rather be shot as a crook

I don't know, but...

I don't know, do you have any whip marks on your back there?

I don't think anybody did more than

I don't think that's repeated in many places

I feel terrible about what happened to the employees.

I felt like I was one lone voice within Enron saying,

I got a bunch of really smart people down here

I guess it all came crashing down on him.

I had left Enron

I have been a major shareholder in Enron Corporation

I have got six minutes left

I have one last question and then I am done.

I identified myself

I just don't buy it.

I knew that my days were numbered.

I knew that there was illegality going on.

I knew.

I know this is a lot...

I left Enron on August fourteenth,

I left his meeting feeling sort of emotional

I looked around me,

I mean every one was so excited and then came the champagne

I mean it was into bankruptcy within a matter of weeks.

I mean they predict wrong?

I mean, accounting doesn't get that creative.

I mean, how would she know that?

I mean, it was a massive fraud of enormous proportions.

I mean, it's just difficult for us

I mean, there was a real sense of betrayal

I mean, these guys are playing games

I mean. Everybody's in step with Johnny.

I mentioned Cliff Baxter in these memos.

I netted approximately a hundred million dollars.

I never heard him say,

I personally think that's unethical.'

I remember it was just a strange,

I remember one of the most poignant meetings

I remember the conversation I had with Ken.

I remember walking in and going 'What's going on? '

I respectfully decline to answer the questions

I said... said to her

I sent this one page anonymous letter.

I sold it all for 1200 dollars;

I think Cliff's suicide note tells it all.

I think he identified with Enron.

I think he was set up as the fall guy.

I think he was smart enough

I think he was smart enough to think

I think it went down to nine.

I think Jeff Skilling had a desperate

I think Jeff Skilling is really a tragic figure,

I think the Enron story's so fascinating

I think the larger lesson was

I think the worst is over.

I think there was just an immediate sense of outrage

I think there's a fairly good chance

I think they could sort of understand each other.

I think this is an extraordinary opportunity.

I think we can do 120 million dollars this year.

I think we're under attack. And of course.

I think, anyone else.

I tried to explain to Ken Lay

I trusted the integrity of the company's certified

I very specifically remember the telephone conversation

I was a supporter of Enron Corporation.

I was highly alarmed by the information I was receiving.

I was interested in writing about a whistleblower.

I was never comfortable on the trading floor at Enron.

I was reminded of the puppet strings

I was told that a good trader is a creative trader.

I wasn't in the Legislature in 1996,

I went to work directly for Mr. Fastow.

I will always be on the LJM side of the transaction.

I will be on both sides of the transaction.

I wish I'd never heard of LJM.

I work for an organization.

I would have a few more words to say

I would liken it to the Titanic,

I would not now, have used the term that I used.

I would return to Enron.

I would understand how off base my questions were.

I, George Walker Bush, do solemnly swear.

I, George Walker Bush, do solemnly swear.

I, personally, am convinced

I'd ever had with Jeff.

I'd like you here to look at one Citi email,

I'd love to see Ken Lay be Secretary of Energy.

I'll run this by Jeff.'

I'll see you guys. I'm takin' mine to the desert.

I'm going to get the nine billion dollars

I'm not a beat reporter,

I'm not feeling anything.

I'm sorry Jeff did resign.

I'm working for Enron,

I've got a few of them here.

I've never heard of a company yet

I've never really seen one,

I've thought about this and thought about this.

If a few of these other problems disappear,

If I could go back and redo things,

If I'm on the way to my boss's office

If not worse.

If not. You may want to start

If so, that would explain a lot.

If some people purposely kept me from knowing some things

If that's ok? Okay.

If the black box is there to fool you,

If the federal government doesn't help us,

If the theory is that Fastow went rogue somewhere deep

If the weather is wrong?

If there is one, you say it was pride

If they think it will get them to the trough sooner.'

If we can create a bandwidth trading market.

If we do that we can add a kazillion dollars

If we shut it down,

If you think of the banks involved Chase,

If you wanted to be in the market,

If you were trying to bully someone

If you will, himself

In 1987 two oil traders made bets for Enron

In 1992 using that good idea,

In 1996, under pressure from energy companies,

In 2001 the accounting firm Arthur Andersen

In 2004, Jeff Skilling was indicted for insider trading

In a classic sense of the word.

In a secret video tape that surfaced after the bankruptcy,

In a way, Skilling was almost like the guy

In all the time that I worked for Enron Corporation,

In any way we can.

In California to give the state

In compensation, in stocks

In corporate America.

In creating the Enron illusion.

In Enron, it looks to me like the captain first gave himself

In exchange for testifying against other Enron executives.

In fact Enron was just stashing its debt in Fastow's companies

In fact, to get to those numbers Enron was doing

In investment banking deals. Ah... once that happens,

In March 2001, Bethany Mclean,

In mark to market profits were really losses.

In mid to late June of 2001,

In North America today.

In North America.

In Northern California

In order to get money out of them.

In order to marry his stripper girlfriend,

In person, 'it's a black box. You have to take it on faith.

In reality, Enron was a house of cards.

In the article that no one could seem to answer,

In the case of Cliff Baxter, the company's chief dealmaker

In the company's financial statements.

In the context of Lou Pai, everyone was horrified,

In the early 60's Stanley Milgram

In the Enron candy jar without an explicit

In the experiment he had an actor playing

In the highest possible way

In the history of the world.

In the hopes of really making my point

In the idea of free markets

In the jungles of Enron

In the magic of the marketplace.

In the midst of energy shortages Enron's traders

In the midst of the energy crisis his friend,

In the most admired company survey

In the Titanic, the captain went down with the ship.

In the West wing of the White House.

In this country.

In three Nigerian barges

In Washington,

In your opening statement.

Incorrect... You'll now get a shock of 75 volts.

Indeed I think the worst of that's behind us.

Indeed the strongest they've ever been.

India couldn't afford to pay for the power

Inside Enron,

Instead of reducing Enron's risk,

Instead they sought out every loophole

Instead, Enron sent a telex to Borget:

Intolerance, greed,

Investors began to worry that billions

Involved the misappropriation of moneys by two traders.

Involved with these transactions acted in good faith.

Irregularities, as such.

Is because Business Week had a favorable article

Is heavily banked, so to speak.

Is it in our best long term interests? '

Is it your contention that you knew of it

Is the growing evidence that

Is there was a,

Is what you're saying to us here today.

Isn't going to collapse for a year,

Isn't there a question of conflict of interest?

It all sort of became smoke and mirrors.

It can't be stored.

It certainly wasn't clear to anyone at Enron,

It certainly wasn't.

It did.

It didn't make sense to me.

It didn't start out that way.

It doesn't matter really to us

It had taken Enron 16 years to go

It has evolved to the corporate crime of the century.

It hit it as sort of, the time tested lesson.

It is a very aggressive culture.

It is creating an open transparent marketplace

It is hard to look at your life's work and say

It is in Enron's best interest,

It is my belief that Enron's failure was

It is pronounced Caly forn ya.

It is real simple.

It just got hungrier and hungrier.

It just immediately had

It made loads of employees angry.

It really isn't fraud.

It required that people be graded from a one to a five.

It sounded to me like the wonderful movie, 'Chicago'.

It started at Noon rolling across the state.

It started with a lot of people who thought

It took them 24 days to go bankrupt.

It uniquely positions us to ultimately

It was a blatantly illegal transaction.

It was a brutal process.

It was a magical new idea:

It was a play off Enron's motto

It was a professional courtesy

It was a protege of Jeff Skilling's

It was a stunning announcement,

It was a time where we had the biggest bull market

It was always making those numbers,

It was an it' stock on Wall Street

It was anything more than an overvalued stock.

It was at that point that I knew,

It was black magic. It really was.

It was brought to the attention of the Enron Board.

It was easy for FERC to do Enron's bidding

It was in the interest of the shareholders of the company.

It was Jeff Skilling announcing that

It was just set up, the rules weren't quite clear.

It was just taking the barges,

It was kind of like being on the Lusitania.

It was like being at a religious cult meeting.

It was never about lack of supply.

It was okay to up the power.

It was one of the bloodiest days in Wall Street history.

It was right about thirty two dollars, I believe.

It was something new.

It was something that hadn't been encountered before.

It was sort of aggressively wondering out loud

It was the number.

It was the only time that I saw him truly,

It was working fine when I left, guys.

It was, 'how is this event going to

It wasn't just Enron

It wasn't really clear what was going on or...

It weeds out the weak people in the market.

It would be in test markets by the end of the year.

It would work magic for Enron

It'd be this, 'Don't leave Texas.'

It's almost like Jeff Skilling said,

It's astounding that they got away with it for so long.

It's crumbling and the rat is leaving the sinking ship.

It's failed.

It's gone to a deeper layer.

It's gone. It's gone.

It's hard for us to poke holes in this.

It's just amazing how skilled Enron

It's just that we've been hit a little harder than...

It's kinda hard to say well we should be,

It's one of those 'only in California' stories.

It's really hard to know

It's sort of the Who's Who of Wall Street:

It's the fucking coolest thing I've done in a long time.

It's the lifeblood of the society.

It's unbelievable.

It's very hard for me to talk about Cliff.

It's what's they call on Wall Street a "trust me" story.

Its businesses kept losing money.

Its stock price went up 90 percent in the year 2000,

Jedi, Chewco Raptors.

Jeff had a very Darwinian view of how the world worked.

Jeff Skilling 200 million.

Jeff Skilling abruptly resigns.

Jeff Skilling had a way of describing people that he liked.

Jeff Skilling was the critical component

Jeff Skilling's biggest single idea was find

Jeff was like the prophet.

Jeff was silent.

Jeff, as time went on,

Jeff. Good to see you. Todd, sit down.

Jeffery Skilling outside and inside

Jeffery Skilling, how's it feel to make a killing?

Jet he wanted to buy.

Jim Jones feeding us the Kool Aid

JP Morgan Chase CS First Boston Citibank

Just going wild.

Just increasingly volatile.

Just last week Enron captivated Wall Street

Just like America is under attack by terrorism,

Just sort of one day,

Just to satisfy the fact that the other employees

Just went through, stamped every one of 'em.

Keep the lights on in California.

Ken Lay and Jeff Skilling

Ken Lay did have easy access to the Bush administration.

Ken Lay had a problem:

Ken Lay had a view of deregulation

Ken Lay had sold 300 million.

Ken Lay is also a guy who considers himself a visionary

Ken Lay knew that might give his friend George Bush

Ken Lay said he hadn't done anything wrong.

Ken Lay saw in Jeff Skilling the guy who had the answer to

Ken Lay took over as CEO.

Ken Lay walks in Jeff Skilling's office holding up

Ken Lay was a Baptist Preacher's son in a family

Ken Lay was also indicted for conspiracy to commit fraud.

Ken Lay was right there, acting as a cheerleader.

Ken Lay wasn't alone.

Ken Lay's going to be Secretary of Energy.

Ken Rice has worked at Enron for twenty years.

Ken Rice was on the trip,

Ken Rice was one of the Men with Spikes.

Kenneth Lay

Knowing that Andy would probably skim a little bit

Ladies and gentlemen,

Lay arranged for a video valentine.

Lay became part of a new crusade

Lay comes to the story of Enron from very humble roots.

Lay encouraged his traders to gamble more.

Lay read the report and he read his budget

Lay thought Enron would be poised to take

Lay was a PhD in economics and he became,

Lay was closer to the father.

Lay's decision was to basically change nothing

Leading U.S. Financial institutions

Less than four months after Skilling's resignation

Let me interrupt you. Our chief financial officer

Let that thing float out to the Pacific.

Let's go.

Let's set up Andy so we can fill the earnings' holes

Like a forced outage type thing?

Like being on the Titanic.

Like California, like India.

Like Milgram, once you accepted the idea

Like most financial institutions do.

Like Skilling,

Linda and I saw our net worth reduced

Listen to this.

LJM was Fastow's most ambitious creation.

Located inside his vehicle

Long Beach, San Diego

Look at Enron's financial statements.

Look what we got. Origination...

Looking at Enron is like

Looking at the flip side of so much possibility

Looking at the soaring stocks of the dot coms,

Looking for loopholes that Enron could exploit to make money.

Lost a total of nearly $1 billion.

Lou Pai became the second largest landowner in Colorado.

Lou Pai is the guy that Skilling

Lou Pai lost all interest in running EES

Lou Pai was kind of a mysterious figure.

Lou Pai's top leuitenant, Tom White,

Louis Borget.

Lt'd be great.

M. Yass.

Main Street here and all throughout the city

Major relationship of a Presidential family

Make it a commodity like a pork belly

Make phone calls for Ken Lay.

Many of the companies had exotic names:

Mark Palmer, Enron's chief PR guy,

Mark to market accounting allowed Enron

Mark to market accounting to something

Mastroeni received a suspended sentence.

May have to pull the plug on millions of customers.

Maybe a year and a half, so I won't get the blame.

Meet their earnings.

Merrill Lynch fired John Olson.

Merrill Lynch suddenly decided to buy

Merrill Lynch, DeutscheBank...

Merrill was informed by Fastow,

Meryll Lynch assisted Enron in cooking it's books

Milgram's discovery was disturbing.

Millions of nervous investors following

Money and a peculiar fascination with strippers.

Morgan, Citibank

Most Internet companies had already begun to fall,

Most of the analysts right now have a target price on us

Move power around the west.

Movie star Arnold Schwarzenegger.

Mr. Borget had taken some three plus million dollars

Mr. Chairman on the advice of my counsel,

Mr. Fastow

Mr. Lay, do you have anything to say, sir?

Mr. Martin, you... you've testified here today

Mr. President, our law said

Mr. Skilling a massive earthquake

Mr. Skilling,

Mr. Skilling, it appears as

Mr. Skilling, your opening statement was

Ms. Senator,

Ms. Watkins did not talk to me, Senator.

Ms. Watkins, I went through...

Much less anyone outside of Enron

Much of it charged to the Enron expense accounts.

Much to Ken Lay's delight.

Muckleroy hopped on the next plane to New York.

My ass, you know.

My conclusion was that this guy is a guy who puts earnings

My experience indicated there were certain places that you

My father was a Baptist minister and,

My first reaction was that I should warn Ken Lay.

My personal feeling was that Jeff looked at the numbers

Nearly two billion dollars for Enron.

Need to believe that Enron was a success.

Never would have come up with that.

News of shredding at Enron raised more questions.

Nice of all of you to show up this morning.

Nigeria is a long way from Manhattan.

Nigerian power barges have nothing to do

No matter how little cash actually came in the door,

No one could believe that.

No one was more aggressive than the traders.

No Recall. No Recall.

No, that would not be surprising.

No, what unites them all is their willingness to believe

Nobody else would do that at the time.

Normally trades in the thirty five,

Not a one.

Not because of California.

Not enough electricity for America's largest state,

Not necessarily the biggest in size,

Not one human being asked me about electricity.

Not only took part in Enron's deceptive practices,

Not when they're exposed from the outside.

Not with the editors,

Notions of corporate ethics and propriety?

Now at... at the time we didn't understand

Now Dabhol is a ruin.

Now she wants her fucking money back for all the power

Now there is none.

Now we've got the SEC inquiry, informal inquiry...

Now, a high school student can figure out that.

Obviously our stock has been doing very well.

Occurrence at Enron was

Of a new economy company.

Of corporate funds and put it in a personal account of his.

Of course the pressure was enormous.

Of course, in this stage of my life,

Of course, we had blackouts in December.

Of mistakes that they made.

Of survival of the fittest.

Of the downfall ultimately of Enron.

Of the year 2000 because by then,

Of their people every year...

Oh at one time, things were really rosy for us.

Oh hello.

Oh Jeff, thank you. That's just supurb performance.

Oh, for instance, one email I remember,

Oh, I can't help myself.

Oh, sure there would.

Oh, yeah.

Oh, you mean the Enron ride.

Oh.

Oil trading is like gambling:

Okay, he arbitrages the California market

Okay, you ready? One, two, three.

Okay.

Old utility company for most of his life;

On a deal that didn't make a penny.

On a net worth basis.

On April 17th,

On certain floors, ah, late in the,

On December 2nd 2001,

On how to get government out of the energy business.

On imaginary profits that never arrived.

On it's leash whenever they wanted to.

On January 25th, 2002,

On October 23rd,

On Skilling's resignation.

On the Board of Directors,

On the butterfly ballot.

On the day I left, on August fourteenth,

On the hope that its stock would never fall.

On the information superhighway called bandwidth.

On the part of our accountants and lawyers and others.

On the rules of the independent system operator.

On the short term basis. There's not a lot you can do.

On the trading side we got to be the biggest,

On the very day a deal was signed.

On this date, at 2:23 am,

On whether the price of oil would rise or fall.

One analyst summed up his recommendation

One guy flipped a jeep and almost got killed.

One guy who a year before had come to me and said,

One is Enron a super star company

One night he was at a club. And one of the guys said,

One of Enron's Executives, left the company,

One of his favorite books was The Selfish Gene,

One of our themes around here is to always be asking why.

One of the only analysts skeptical of the Enron story.

One of the protestors even brought a blueberry pie

One of the smartest guys at Enron was Tim Belden,

One of the things that fascinated me was that

One of the things that was always a strange

One of those companies that can seemingly do no wrong.

One of those opportunities was called Ricochet.

Only a few blocks away, Enron's accounting firm,

Only a few years ago,

Only two things seemed to motivate Pai

Operating Officer was wrestling with.

Or as an idiot.

Or had Enron found a way to exploit

Or I was. I said 'I'll track you down

Or implicit approval to do so by Mr. Skilling.

Or inappropriateness of the transactions

Or Perfomance Review Committee.

Or science fiction.

Or strong buy ratings on the company's stock.

Or the dark shadow of the American dream?

Or the National Guard to seize control of the power plants

Or the wealthiest in natural resources.

Or we don't do any business with you.

Or why it's not done a different way.

Our culture is a tough culture.

Our lights are going to go off in the middle of winter

Over the loss of the company.

Over the year 2001,

Over there at the bank, George.

Particularly the wholesale business.

Passed a bill allowing for the deregulation of electricity.

People at Enron got paid, in large part, through stock.

People broke bones.

People don't really appreciate

People pressured by the need to keep the stock price up

People started jumping up from their seats,

People that had been gas pipeline workers who

People wondered whether it was good science

Phase one of Dabhol is in operation generating power.

Phase two is financed and is under construction.

Playing on Wall Street's greed,

Pleading innocent,

Please continue. Go on, please.

Please go on.

Please keep making us millions.

Plenty o' power to meet our electric demand.

Plus or minus 20 million.

Police.

Poor grandmothers in California.

Portland General, again, good earnings and cash flow.

Power out of this power plant in ten years

Pretty heavily before that date

Prices aren't going to stay at 1,000 bucks forever.

Probably have a catchy name for that.

Probably in more normal circumstances

Probably President of the company one day.

Profits to personal accounts.

Prop up Enron's stock by making its debt disappear.

Protestors heckled Enron's CEO,

Pundits praised the company as a new business model.

Pushed Ken Lay to found Enron in 1985.

Put away money each month.

Put up fucking candles.

Rather than be bound by the physical flow of the pipeline,

Really not this morning, thank you.

Really shouldn't get involved. This is California's problem.

Really trickled down,

Really why he was so concerned.

Reassuring employees and not just employees,

Reassuring investors,

Received one million a week.

Recently, audio tapes of the Enron traders were discovered.

Reducing electricity cost is only one benefit

Refused to intervene.

Regulatory's all in a big concern

Remember, I'm not sellling the assets to myself.

Reminding us how good we were.

Returns above and beyond the norm.

Rich, I've... been asked to think of one thing

Rich, you have been fantastic to the Bush family.

Right away.

Right.

Right.

Rolling blackouts had already hit California

Running out to the halls to call their bosses.

Sacramento, San Francisco, Beverly Hills,

Say once again they're worried about having to blackout

Saying that the head of your whole division here

Seven weeks after the Enron bankruptcy,

Shares plummeted thirty one percent.

She asked a simple question

She called up and started asking some very,

She's the one who couldn't figure out how to fucking vote

Sherron Watkins sent a letter to Ken Lay.

Should we invest all of our 401k in Enron Stock?

Should we invest all of our 401k in Enron stock?

Show up for work unshaven, looking blurry eyed.

Showing about the relationship he had with his family.

Since the fall of Enron, Ken Lay has said that

Sir, can you give us any indication whether

Skilling became increasingly despondent.

Skilling decided to take Enron into cyberspace.

Skilling saw the opportunity to build an industry new

Skilling wanted to set free the basic instincts

Skilling was certainly fine about that.

Skilling was, and everyone else in the company was.

Skilling, Lay, and the Enron board

Skilling's notion of how the world should work

Skyrocketing three or four hundred percent

So an abnormal profit would be

So he took them up to his office.

So I must be crazy to think there's anything wrong with this.

So I think that was kind of the genesis of it.

So I was working with this spreadsheet and,

So I would have had no reason to look at Enron.

So it is your problem.

So it was defying laws of financial gravity.

So it wasn't original, with the President?

So it's hard now to say,

So long as the commands came

So many of them were blinded by the money

So nobody was wearing glasses.

So that was the one good idea.

So the criticism, I think, is kind of ridiculous.

So the other guy shot back, he said, 'but Lou,

So we fuckin' export like a motherfucker.

So we've made a lot of progress.

So, we had a polite, but spirited discussion on that.

Soft air.

Soft spoken,

Sold the power at reasonable prices to consumers

Solely to do business with Enron.

Some suspected a political conspiracy.

Something friendly like 'Death Star'?

Something less than twenty million dollars

Something that can't happen anywhere else.

Something weird is going on.

Something weird was going on.

Sometimes it is.

Sometimes you win, sometimes you lose.

Soon after Fastow rewarded the bank

Sooner or later they were doomed to go off

Sounds like what he said about Valhalla.

Started analyzing cash flows,

Started going up at that point for everybody.

Started to export power out of the state.

Started to grow Ken Lay flew out here

Stole from LJM.

Struck Enron right after your departure.

Sugar Land police discovered John C Baxter

Taking enormous risks.

Talking about my compensation.

Tapped to run the EES business.

Teaming up with Blockbuster to deliver movies on demand.

Telling those people below him

Temperatures in California are hitting higher than 100 degrees

Ten times your original investment.

Than any other Energy marketer in the country, period.

Than anyone else in the company.

Than he at times portrays himself.

Than many others.

Thank you very much.

Thank you very much.

That are more comfortable in an environment of change.

That behaving inhumanly was okay,

That California put up there.

That can find arbitrage opportunities.

That can tell you with any sophistication

That cliff at 90 miles an hour.

That could be traded like stocks and bonds.

That deals with everyone with absolute integrity.

That doubles it?

That ended the energy crisis, but not the political one.

That Enron really needed to address this situation.

That Enron was becoming a financial fantasyland.

That had been poor all it's life

That had to be met before he'd join Enron,

That have a lot of authority in which you place enormous trust.

That he is gonna have in his dual role as Enron's CFO

That he met with you repeatedly to express his concern.

That he thought could be made.

That he was stepping down as CEO.

That I had with... the Fortune reporter.

That I was going to downgrade the stock

That in fact, the fraud is the reality.

That it's somehow about all these complicated transactions.

That it's thi own bizarre reality.

That Jeff Skilling as the company's Chief

That many of Ken Lay's lieutenants questioned.

That money was the only thing that motivated people.

That nobody could really understand and in fact,

That only buys assets from Enron.

That price controls will not solve the problem.

That raised questions about whether he was actually

That replaces the dark blind system that existed.

That the emperor doesn't have any clothes.

That the PRC process is the most important process

That the price of energy would go up

That the stock analysts had missed.

That the system will eventually work.

That the two rogue traders should be fired.

That there was no guarantee. And you said that under oath.

That they convinced corporate America

That they didn't see that

That they like the strategy. It makes sense.

That they were smarter than anyone else.

That things were very difficult at Enron.

That this place was about to collapse?

That was crooked with Borget

That was making any money and that he could not,

That was occurring in California.

That we conduct as a company.

That went for a hundred years from the days of Edison built

That were doing business with Enron.

That what I was doing was, in fact,

That would be deregulated. And in particular,

That would be successful terminating 15 percent

That would break through.

That would exceed two thousand percent,

That would push prices even higher.

That you're not doing anything wrong.

That your actions were in any way consistent

That, you know,

That's a beautiful thing.

That's about numbers.

That's correct. Continue.

That's decreased in value this year.

That's like a bad science fiction movie.

That's my nickname for my husband,

That's not what Wall Street is focusing on.

That's our vision.

That's wrong.

The ability for a 25 year old to go in

The accountants are supposed to say no.

The accounting sham involved the sale of an interest

The analysts weren't 'analyzing' at all.

The analysts' projections for quarterly earnings per share,

The appearance of this company had been.

The architect of the disaster knows that

The auditors adamantly told Mr. Ken Lay

The auditors told Lay that Borget and his traders

The authority and the resources to

The bankers are supposed to say no.

The bankers know what we're doing.

The banks were all knowing articipants in this wrong doing.

The Bay Area got hit by not one,

The best electrical system in the world,

The biggest:

The billions in loans Arthur Andersen...

The broadband business look successful.

The broadband business was in complete meltdown.

The captain of this ship, Enron,

The chairman of FERC was Pat Wood,

The company is doing well both financially and operationally.

The company's in the best shape it's ever been in'

The corner office, and all the perks

The darker side of human behavior?

The day after Skilling left,

The day after Skilling resigned,

The divisions he left behind

The Dow rose nearly 61 points.

The email trail here is all too lurid.

The Enron collapse was an enormous tragedy.

The Enron fraud is the story of synergistic corruption.

The Enron prize for distinguished public service.

The entire reason that this analysis

The excitement was palpable.

The executives started selling their stock.

The fact is that Ken Lay was out here

The facts that we now have come to light about Enron,

The fatal flaw at Enron

The Federal government regulates this,

The first clues to Enron's new strategy

The first cracks in Skilling's public image

The first hint came from an anonymous tip

The first thing we heard about this energy crisis is well,

The flip side reflected back at you.

The Fortune magazine article that's out the headline is,

The game was called 'pump and dump.'

The game was played on Wall Street in such

The gist of the article is that

The Governor of the great state of California,

The Governor, who's been basically

The heart of it is that an industry

The hearts and minds of stock analysts.

The highest finish ever.

The huge drop on Friday. The Dow Jones

The illusion of a business where there was none,

The insiders had sold off a billion dollars of their stock.

The issue with the company in 1997

The lawyers are supposed to say no.

The lawyers that represented us?

The lights were on.

The magic power of deregulation

The man Ken Lay had personally recommended for the job.

The markets in California are the most regulated market

The merger with PGE put Enron in the electricity business.

The merger, we think...

The Milgram Experiment has a lot to say about Enron

The natural gas industry that was shackled by regulation.

The natural gas stocks include Enron...

The next day we found out that

The next day, Andy Fastow was fired

The next day, Mastroeni came in with the real books.

The Northern half of the state.

The notes from that meeting really still have never surfaced,

The numbers are always going to be good,

The only part of the combined company

The only thing that I'm aware of Senator,

The other one has to come and find something bad.

The other thing about people at Enron is,

The other two executives packed up

The people who are strong will stick around.

The people who control California's power grid

The perception is the reality.

The professor asked him if he was smart.

The quality is great and the customers like this,

The question here is what happened,

The question, Mr. Fastow, is how could you believe

The real mythology is high school mythology.

The response was, 'I'll give Jeff a call;

The responsibility is mine, correct.

The retirement accounts of Enron's rank

The rules were complicated and hard to follow.

The sales pitch still sounded good.

The scientist looking person to stop too.

The SEC launched an investigation

The societies which have achieved the most spectacular,

The state of California $30 billion dollars.

The state of California and the Titanic?

The state's unpopular Governor,

The stock market continued its bull run Thursday.

The stock market soared to near record highs yesterday.

The stock went higher.

The story I ran was actually pretty meek.

The story is that because he's kind of a mild,

The subject, the real subject is begging

The tapes revealed Enron's contempt

The technology didn't work

The Terminator?

The title was 'ls Enron Overpriced? '

The top echelon at Enron

The torpedo had hit

The traders had gambled away all of Enron's reserves.

The traders weren't fired, or even disciplined.

The traders, they will cut your throat,

The tremendous risk that you have in that market.

The trips were legend.

The truth was that Enron was just struggling

The underlying fundamentals of our businesses are very strong.

The year long energy crisis would cost

Their things and had left the room,

Then all of a sudden, it was like a ghost town.

Then Enron itself would collapse.

Then indeed I cannot take responsibility for what he did

Then it's a good thing he quit his day job

Then lowered himself and the top folks down in the lifeboat

Then they admitted they had diverted company

Then we are the stupidest people in the world.

Then we get to Fortune magazine telling us

Then we really began to feel good about ourselves.

There are five or six of the name brand banks

There are supposed to be checks and balances in the system.

There had to have been complicity across the board.

There is a lot of speculation about Andy's involvement

There is never any question that

There is still to this city a layer of anger and upset.

There was a buzz that a major

There was a difference of opinion

There was a guy named Lou Pai,

There was a question.

There was definitely a lot of excitement in the air.

There was fraud here.

There were getting increasingly desperate.

There were of evil people.

There were offshore accounts phony books

There were rumors that he brought strippers up

There were these partnerships that were run by Andy Fastow

There would be ample supply available

There would be some things that I don't know

There'd be like paper blowing around,

There's a 'Body Heat' kind of angle to this,

There's a fire under the core line.

There's a lot of disbelief.

There's a reason she didn't invest in Enron

There's a sense the diffusion of responsibility.

There's no one that knew Cliff,

There's no questions, there's no front page stories,

There's not much demand for power at all here.

There's nothing left.

There's our market.

These are some of the premier investment banks in the world.

These are two traders, t r a d e r s.

These strategies made some money for Enron.

These strippers didn't even believe he was the CEO.

These wild adventures:

They all took their share of the money,

They announced that they had developed the technology.

They built this power plant in India.

They can't pay their electricity bills.

They continued to sell the company

They could bury debt; they could bury losses.

They could create artificial shortages

They could do it.

They could in order to profit from California's misery.

They decide whether they're looking

They didn't find any.

They had a very strained personal relationship

They had become the major engine of

They had cost billions to build

They just pop out.

They know full well my administration's belief

They lost everything.

They own the assets. They're selling them to LJM2.

They posted the stock price in the elevator.

They produce cash,

They put on a little show for him there.

They received their fees.

They said that we would not survive,

They said this business can't be making

They saw the benefits of letting Fastow

They should keep buying stock?

They slid in here, and when they purchased PGE,

They took Jeff Skilling and Ken Lay's belief in free markets

They went into this room and he had an experimenter say,

They were a part of the process.

They were all being paid.

They were betting their own company on the transactions.

They were changing the world.

They were doublin' their money.

They were exceedingly conscious of that;

They were headed in the opposite direction.

They were known as the smartest guys in the room.

They were sinking their own life boat

They were so good at their acting

They were terrified of investing in India.

They were the investment bankers useful idiots.

They were trying to overcome.

They were willing to believe virtually

They'd tried every trick in the bag to try to create

Things were for him and his family.

Think Enron's making money despite California,

Thinking that they've been dealt with

Thirty billion dollars in debt.

Thirty million dollars worth of stock

This absolutely has no precedent.

This being a web cast, I know I'm going to regret this.

This company collapsed so quickly and so entirely.

This company was fixated on its stock price

This inquiry will take a lot of time

This is a case of America's largest corporate bankruptcy.

This is a company that had over thirty thousand employees,

This is a trip where people crashed bikes.

This is an abuse.

This is by far and away the most important,

This is not a political issue, it is a business issue.

This is really a great wake up call.

This is the key.

This is the shredded evidence we got that came out of Enron.

This is what they say.

This manifested itself in trips that Jeff Skilling led

This much money legitimately.

This thing kind of came out of the woods,

This was related to Enron's bankruptcy.

Those guys at the flip of a switch

Those sorts of stories at Enron became legend.

Though it lost a billion dollars on the project,

Though Lou Pai flew away from Enron

Three Nigerian power barges from Enron.

Three years later, with some families.

Through a merger of vast networks of natural gas pipelines,

Through sheer will and force of personality.

Tim Belden was a fervent believer

Time and time again when we had a question

To a group of Merrill Lynch bankers.

To a mysterious Lebanese speculator no one could find:

To barter other forms of energy even space

To book potential future profits

To convince the investment community that they were new,

To investors in one word

To Jeff Skilling, risk was glamorous.

To learn what was happening; how we could fix the problem.

To let gas prices float with the currents of the market.

To liberate businessmen from the rules

To look at the whole thing.

To outsider investors

To pave the way so there's no disruptions,

To perform a magic trick...

To please the Boss,

To quote Lenin,

To run for president.

To say no help had is like,

To show people the specifics of how money flows through,

To the bottom line.

To the dishonesty right in front of him.

To the extent that

To the first presidential campaign of George W. Bush.

To the outside world, Enron's profits could be...

To the sell side analysts that they couldn't answer,

To the trading floor.

To the tune of a million bucks or two a day.

To the tune of a million Can you rephrase that?

To thirty thousand megawatts in December.

Tom Mastroeni,

Tonight I'm declaring a state of emergency

Top execs would push the stock price up

Toward the end of the fourth quarter in 1999

Toward the end, that didn't realize that

Traders soon discovered that by shutting down power plants,

Traders would stay after a twelve hour shift

Trading we did 10 million last year

Transform energy into financial instruments

Tried to figure out what characteristics

Truly worried about keeping the stock price up.

Try new things, experiment step out.

Turned into a casino.

Twelve hundred miles of very rugged terrain in Mexico.

Twenty six thousand miles of California power lines.

Two days later I met with him and Ken Lay

Two days later, the guy who told the joke,

Two months later,

Two totally disjointed thoughts in his mind at...

Ultimately in Enron the fatal flaw was a sense that brains

Ultimately, who was responsible for the downfall of Enron?

Under the United States Constitution.

Unless we joined forces.

Unseemly or was, at least, unethical,

Until they're not.

Upon the resignation of Cliff Baxter,

Used future projections to book $53 million in earnings

Valued at almost 70 billion dollars.

Very amiable, fun, man's man.

Very blunt would tell Skilling whatever

Very early on, a real apostle for deregulation.

Very few of the rank and file people ever dreamed that

Very subjective.

Very tightly monitored risk. In reality, he's a gambler.

Victims of their own greed

Walking the walk This was the Enron oil scandal,

Want to step right in here and have a seat?

Warehouse them for five months and then buying them back.

Was a re affirmation that this could be big.

Was convicted of obstructing justice.

Was dispatched to Calgary, Canada.

Was done by Fortune magazine

Was Enron the work of a few bad men

Was going to confirm that understanding.

Was it their multi million dollar bonuses

Was suspicious of Enron Oil's steady high profits.

Was the fact that Ken Lay and Skilling

Was there an evil strain or could normal people

Was waking up every night with nightmares.

Was what I got for it, when it was done.

Was with something called structured finance.

We all felt like we were on the Titanic

We all learned that Lou Pai was no longer the CEO of EES.

We always made the numbers, and then some.

We are doing the right thing.

We are facing a number of challenges,

We are going to unveil this morning

We are not using. Why?

We are pleased and indeed honored to award you

We are the good guys. We are on the side of angels.

We became the largest buyer and seller of natural gas

We began to make money.

We begin by attracting the kind of people

We broke even.

We can recreate this entire industry.

We could just hear rumbles all the way up and down

We could see the stock price double

We did 20 million last year,

We do know that he was and Enron employee,

We encourage our people to do new things,

We had a fifty percent hike in utility rates.

We had enough power in California.

We had the rights on and said to California Utilities,

We had thirty minutes to leave the building

We had this culture that had a lot of focus on

We have a right to know.

We have an installed capacity in California at the time

We have traders here from Enron

We know all of the California imports.

We know all of the California load.

We learned around nine thirty about the bankruptcy

We like risk.

We no longer have the power to stop this.

We normally use during the summer.

We only need twenty eight thousand

We really only had to take over one.

We relied on the information that was available at the time.

We think we can do 64 this year.

We very quickly determined that the insiders had sold off

We want people to leave the transaction with Enron

We want you guys to get a little creative.

We wanted the Governor to send in the state police

We were consumed by it.

We were frozen out of our accounts.

We were the most innovative corporation in America.

We were the poster child for the new economy.

We were very close for many years.

We weren't going to make our numbers.

We will begin with Ms. Watkins.

We would be under the impression that

We would not have engaged in these transactions with Enron.

We'll definitely retire by the time we're 30.

We'll see whether he's back or not.

We'll work to help California,

We're a dead duck.

We're all going to be rich.

We're doing everything we can to help in California

We're fighting with both hands tied behind our back.

We're getting' pretty spoiled with all this money.

We're going to bring it back.

We're going to bring it back...

We're going to do the article anyway.'

We're going to move from

We're making a little too much. And I tend to agree with you.

We're never satisfied

We're not the only stock

We're now in the process of seeing

We're talking about a commodity that

We're the future of Enron.

We're trying to change the world.

We're with CNN.

We've been working hard on this

We've got to stay the course

Well deserved. Well deserved.

Well this oil trading business had profits

Well, I'll stomp on the guy's throat.

Well, I'm delighted to be back.

Well, it's unfortunate. That's a good call.

Well, Ms. Watkins said Clifford Baxter told her

Well, Skilling convinced me that it was for personal reasons.

Well, thank you very much. We appreciate it, asshole.

Well, the accountants and the board of directors

Well, you all did it again.

Well, you, you...

Well... Hey Reg.

Went on to run Enron's doomed

Were enormous guarantees of Enron's stock.

Were just trying to throw rocks at the company.

Were manipulating earnings destroying daily trading records,

Were so perilous that someone could actually die.

Were you involved in an investigation

What about the fact that George W. Bush

What about Vincent and Elkins,

What about weather options or futures?

What answers were lost in the torn documents?

What are the permutations and combinations of ways to

What brought all this on was the deregulation

What do you want to call this project?

What Enron asked of its employees which was ask why.

What happened to all that money?

What I suspected might be true.

What I wish, I, you know, in retrospect?

What kind of guerilla we had loose up there.

What kooky rules you Californians put in place.

What name did you suspect that was?

What she did and the bravery that it took in that company.

What Sherron was telling me it was more than accounting

What Sherron Watkins discovered

What the future of the natural gas business was supposed to be.

What the hell is he building in there?

What the hell is he building in there?

What was FERC doing and why was it not taking action?

What was going to happen.

What was the job of EES, as you ran it?

What we could do is just try and find out

What we didn't know was that the house of cards

What you want it to mean.

What's happening?

What's he building in there?

What's the stock price doing?

Whatever Enron said they were.

When Bethany McLean at Fortune

When Enron announced its latest plan to trade weather,

When Enron first crossed the line into outright fraud.

When I ran for Governor in 1998,

When I started working on the book with Sherron,

When it was really engaged in a loan.

When Jeff got Lasik on his eyes, everybody at Enron got Lasik,

When Jeff Skilling applied to Harvard Business School,

When people realized how much they had profited,

When prices soared, they brought it back in.

When Rich Kinder,

When Skilling called this guy an asshole made him a sign.

When the Enron board discovered that

When the interview was over,

When the rolling blackouts started hitting California

When the tidal wave of public anger

When the Wall Street Journal published

When we need to',

When we're using half the electricity

When you hear the story for the first time,

When you see two or three energy companies

When you want to talk about that conflict of interest.

When you've got a captain who's saying,

Where investors couldn't see it.

Where it could predictably increase profits

Where some of those who are most reflective,

Where the banker writes, 'Enron loves these deals.

Where was the real money going to come from?

Which appeared to be this shining star

Which he overheard.

Which is, of course, exactly what happened.

Which they did very well.

Which, sorry, it's true.

While Enron's stock kept rising,

While Enron's stock was plummeting,

While I was very young probably two, three years old.

While Ken Lay was stressing over the corporate jet,

While you were at Arthur Anderson,

Who could he find to make money for Enron?

Who covered Enron had buy ratings

Who had had his child.

Who have stepped up and said they'll commit to this.

Who ran the west coast trading desk.

Who was a German arms dealer was going to kill him,

Who was a key Skilling lieutenant;

Who was asking very basic questions about Enron.

Who was responsible for it happening,

Who were saying they did something wrong.

Who will figure out how to make money anyhow.'

Whoa. Jeff... alright. That sounds fantastic.

Why can't we sell the bandwidth to other companies?

Why did the traders do what they did?

Why don't you just go ahead and shut her down then,

Why Enron?

Why is it that you had begun unloading your stock?

Why it was that Enron,

Why not Worldcom or Tyco or Global Crossings?

Why something's done a certain way

Why were the analysts blinded to the company's deceit?

Why?

Will help people memorize lists.

Willing to shock to the death,

With 30, 35 percent of their entire capacity down

With 250 million dollars,

With 350 million dollars in the bank.

With a sense of confidence that if we were smart,

With a single corporation in American history.

With an apparent gunshot wound to the head.

With deregulation and the market will correct itself

With his biggest moneymaker now behind bars,

With his side deals.

With incredible skill.

With its bold move into broadband,

With its earning statement,

With its reputation for honesty destroyed,

With Merrill Lynch's business.

With one of Andy's entities, the Raptors.

With that man, Mr. Lay.'

With the appropriateness

With the media hounding him

With the prospect of returns

With the stock price. It should always be higher.

With the technology for video on demand.

With their cell phones and their Blackberrys,

With this new concept of deregulated electricity.

With today's arrest of Ken Lay,

With two investment banking jobs

With your fiduciary duties to Enron

Within six short weeks Enron was spinning out of control.

Without a well orchestrated PR campaign beforehand

Wondered how EES could show a profit

Worth 50 million dollars.

Would be our Governor as a result of deregulation?

Would have for suggesting that I would know some...

Would that be surprising to you to learn that you did that?

Would you identify your counsel for the committee.

Wow. Enron's stock soared 34 percent in two days.

Yeah, Grandma Millie, man.

Yeah, isn't that the whole point of...

Yeah, we have a market in weather.

Year after year.

Yes it was.

Yes, I was.

Yes.

Yes.

Yes. Could I predict that Arnold Schwartzerneger

Yes. My counsel is Mr. Philip Hilder.

Yet for some reason,

You accept all responsibility?

You are getting direct communication from Ken and me

You begin to believe something's not smelling right here.

You can lose...

You can't manufacture kilowatts

You can't treat electricity like you treat oranges.

You can't turn these people loose

You cannot imagine how proud we all were to be there.

You could do anything.

You could here Skilling say asshole.

You did to support George and,

You don't believe that the press and everybody

You don't think it's accurate

You got very upset with her, didn't you?

You had to come up with the next idea

You had to deal with Enron.

You have a lot of senior officers

You know Enron had made contributions to

You know the staid pipeline in the ground and...

You know we shouldn't do this even though it's allowed

You know what happened to those people.

You know what the difference is between

You know when you work for Enron

You know, every single transaction,

You know, he's the one that stole from Enron,

You know, I couldn't believe that

You know, I didn't want confirmed

You know, in the end,

You know, kill the golden goose.

You know, Lou, all the rest of us are single.

You know, never was heard a discouraging word.

You know, safe investment as it... as it had always been.

You know, that that's how people were.

You know, that's a whole 'nother ball of wax

You know, the inmates had taken over the asylum.

You know, the math just didn't add up.

You know, we can sit and think about what strange insecurities

You know, we don't have any problem.

You know, when the lights went out at night,

You know, where Skilling is Kathleen Turner

You know, Where there was once great pride,

You know, you can gain the whole world

You know, you're one of the people

You made millions of dollars off of California...

You must continue. Go on, please.

You said you were getting a little scared

You sat there in your office and didn't...

You should be able to book the profits from that idea,

You spoke about bandwidth trading,

You think so? I think.

You turn on your computer and it's right there.

You wanted to be the most popular guy on Wall Street,

You were pulling some rabbits out of a hat.

You were surrounded by the health of the company;

You're fucking the gas station attendant? '

You're going to see the newest markets opening up.

You're gonna keep giving him what... 450 volts every shot now?

You're gonna see the newest thinking.

You're the good guys.

You're the only financial institution that can't produce

You've charged right up her ass.

You've created a momentum that now you can't stop.

Your family and your friends.

Your husband earned about 300 million dollars in,

10 to 15 percent a year.

20,000 employees had lost their jobs.

23 million dollars to defend him.

45 million dollars for himself.

65 billion of assets.

96 individual bankers invested in LJM.

250 million dollars,

2001 for personal reasons.

2001, I believed the company was in strong,

'A Fortune 500 CEO losing it like this,

'are there any more shoes to drop.

'Ask Why' and the sign said 'ask why asshole.'

'cause the financials didn't make sense.

'Cause then they would know he meant it.

'Does it help us if we totally **** California? '

'Does that advance our goals of nation wide deregulation? '

'how exactly does Enron make its money? '

'how is it that we made the numbers? '

'I did not have political relations

'I don't know what the hell I'm going to do.'

'I just can't be of help to you on that.'

'I take responsibility' for a thing.

'I would like to know if you are on crack?

'I've got no life left

'lf he's not telling the truth,

'lf you want to use the line, pay us.'

'look, we've... we've committed horrible fraud.'

'ls Enron's Stock Overvalued? '

'maintain full speed'

'oh I don't think it's going to be alright

'oh, we didn't know anything.'

'okay, we're hitting some troubled times.

'take a look at first quarter, second quarter, third quarter,

'the experiment requires that you continue.

'there's your man, Andy Fastow. He's the crook.

'Wait. Is what we're doing ethical?

'we have no accounting irregularities,

'we're going to see if mild electric shocks

'What we did was overbook the transmission line

'which of these cabin configurations

'Who knows where the earnings come from?

'who was I? Who did I become? '

'Yeah Amanda, you're most likely right.'

'you're one of the good guys,

"Every company traded according to the rules

$2 billion in pensions and retirement funds had disappeared.