The Enron probe, involving an energy company involved in selling
futures contracts for energy, has a wide range of impacts on energy
and other industries. Among them:
· companies' participation in the options/futures contracts, which
change the risk profile of a company. The Washington Post describes
lawsuits involving Enron transactions in an article "Merrill Lynch
Sued Over Trading Unit," (Sept. 26, 2002):
http://www.washingtonpost.com/wp-dyn/articles/A3529-2002Sep25.html
· structures of limited partnerships, used widely by Enron to enrich
executives and confuse the accounting process. A recent $40 million
settlement with Arthur Andersen by the University of California is an
indication of the problems, published in the California Aggie, (Aug.
29, 2002):
http://www.californiaaggie.com/_articles/3844.taf
· the structure of deregulation in the utility industry. In a recent
San Jose Mercury-News article, "State Needs Intelligent Energy
Deregulation," (Sept. 24, 2002) Dan Gilmoor discusses where California
went wrong:
http://www.siliconvalley.com/mld/siliconvalley/4144696.htm
· impact on the western U.S., where California alleges that its
consumers were cheated out of $9 billion via illegal price-fixing.
This San Francisco Chronicle (Sept. 27, 2002) notes how recent judge's
decision has supported the state's charges:
http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2002/09/27/state1729EDT0118.DTL
A good way to look at current topics regarding Enron is to use the
Google News tab, with a search strategy. It provides more than 500
references with more details:
Enron + California
Best regards,
Omnivorous-GA |
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