3 Burst results for "Enron Broadband"
"enron broadband" Discussed on Marketplace Morning Report with David Brancaccio
"This marketplace podcast is supported by pegasus adams. Pekka builds innovative technology solutions that eliminate business complexity. So your entire enterprise can work smarter faster and more efficiently pegase low code software will help you. Automate and simplify complicated. Processes get rid of time consuming manual tasks and solve customers problems in real time. You and your team will be free to focus on the work. That really matters. Are you ready to go. Find out more at pegu dot com slash marketplace. We're watching one documentary on marketplace themes each month for our econ extra credit project this time. It's enron the smartest guys in the room about the collapse of that darling of investors. The energy company enron enron's accounting was a work of fiction and unlike the mortgage crisis seven years after that senior executives did go to jail. I'm joined now by bethany. Mclean a financial journalist. Who was onto enron early. She co authored a book that very much informed. This oscar-nominated documentary were watching. We talk at a time here. That a big trial is going on about another apparent innovator accused of pulling the wool over the world's is thank you for joining us bethany. Thanks for having me. Do you see possible parallels to the blood testing machine company. Theranos i mean allegations are theranos was also fake it till you make it over there. Maybe fake it till you make it works for lots of companies but we don't get these scandals unless it all goes wrong. The interesting thing to me is what you hit on. Which is what is the line between a visionary in a fraudster and sometimes i think the only real difference is that the visionary is able to prevail through these periods where. They're faking it. And they're able to keep getting money from investors so that they can get to the making it's hedge and then nobody ever investigates to say. Yeah but for this period of time. They were actually faking it. When you look back to enron enron headed division called enron broadband. And that really was net flex ahead of its time and sometimes i think if enron had been able to keep getting money from the markets could enron have been net flicks. I don't know it's an interesting. It's an interesting question. Right gets to the whole culture of innovation now. The cfo fast. Oh went to jail. Enron's former ceo skilling went to jail the former and chairman. Ken lay was awaiting sentencing when he died. We didn't get to see similar scenes. Played up people going to jail after the mortgage crisis that came seven or so years after enron. Is it apples and oranges two different types of disasters now. I actually think it's apples and apples. I think the line between what happened at enron and what happened in the global financial crisis is much blurrier than people might think. Both were examples of lots of manipulating the rules and figuring out how to make money for themselves out of something that was pretty much destined to collapse and leave economic wreckage for a lot of others in their wake and both were arguably quite legal. There was just a different appetite for prosecution in the wake of enron. I think one part of it is that what happened. After enron actively scared the justice department from prosecution because they did successfully prosecute arthur andersen the big accounting firm. It went bankrupt. Destroyed tons of jobs and people said a wait. If we prosecute these big companies than a lot of innocent people at these companies lose their jobs so it'd be it maybe enron was the last of a breed where people go to jail if the company is big enough. I worry that it was. I think justices. It's not a lot of it. Depends on time and place in the appetite for going after things and so you'd like to believe that when something goes wrong the people who did bad things would pay the price for it. But i don't think that's the way it works. Bethany mclean is a financial reporter who was onto enron before most people co author of the book along with peter l. Kind entitled the smartest guys in the room. The amazing rise in scandal is fall of enron. Bethany always good to talk to you. Thank you so much for having me on one documentary film. A month on marketplace issues can watch along with us if you like by signing up for our econ extra credit newsletter if you haven't already that's marketplace dot org slash newsletters. I'm david brancaccio with our morning. Report from apm american public media..
"enron broadband" Discussed on American Scandal
"It's not always easy to know where to turn. When you or a loved one hits a low point and seeking help becomes even more difficult when it comes to stigmatize topics like addiction and mental health. Lemonade media show in recovery hosted. By dr n'singa harrison is here as a starting point season. One of in recovery focused on all things addiction while season two is broadening its scope to cover the many facets of mental health. This series has an incredibly inspiring lineup of guests over the next few months including podcasters like georgia heart stark. From my favorite murder. David smith from the cost of care and array mckesson from potsy of the people. Follow along as guests. Bravely share their experiences with addiction trauma and the progress. They've made you can listen to in recovery from lemonade media. Wherever you get your podcasts Sherron watkins returns enron's offices following her lunch break. There's noticeable of spring in her step. It's not the things are going poorly exactly. She just feels like her. Strengths could be better utilized elsewhere to has recently transferred to enron broadband tasked with implementing cost. Controls feels like she's running a daycare. Employees have broadband or mostly a bunch of spoiled brats. What she tries to do her job yell at her start her fault that they lose more and more money every month because they're deals don't work out. Maybe it wasn't so smart partner up with blockbuster video then. Jim fallon took over. Walking's has known him for years and never liked him. She tried to make suggestions informing him. How broadband might be saved. His response was to suggest she looked to transfer to a different department in the company. Walking is all too happy to do that but where this is the question. She's mulling over by the elevators when she feels a tap on her shoulder. Walking's turns around and sees a man she hasn't spoken to in a very long time. Sandy fast down. He's in charm mode. It wasn't so long ago that he was berating her for joking about enron's accounting practices but everything changed when she transferred from his division and made vp after that fastow viewed her more as an equal. Now he says it's nice to see her and asks what she's up to these days. Watkins relates the whole sorry tale of her adventures and broadband. Andy listens respectfully and shakes his head at the stupidity of falun. Then fastow's eyes light up since she's looking for a new place to land. Why not join his team. They'll be just like old times that night. Watkins calls for all friend. Jeff mcmahon mcmahon is easy to talk to with a gift. Watkins lacks for seeing all the angles. She was distressed to hear rumors that he'd come out on the losing side of a power struggle with fastow though. It seems like things wound up okay for him. His current title is ceo of enron industrial markets. Walk ins tells mcmahon about fastow's offer it. Is enticing walk. Ins would evaluate potential deals and bring the strongest wants to his attention and fast out has told her that if she finds a good deal on her own. She can put her name on it ensuring that she'll get all the credit should the deal prove lucrative mcmahon listens patiently says. It's entirely her decision. You wouldn't recommend working with fastow. Walk ins asks if he's just saying that because he has a personal problem with fastow mcmahon assures her he doesn't he just thinks it's a bad. Idea walking's thanks for the advice. She says she'll continue to mull it over on march twenty second. Two thousand one. Jeff skilling looks at the conference table the chairs the faces surrounding him he wonders if the decor and here was always so dreary. Everything appears to be a different shade of grey. He could've sworn used to look warmer in here. More inviting perhaps did in the better days the days when the stock price soared an inch every day towards one hundred bucks. A share not stuck at sixty. At least that's an improvement from last week when it was fifty. Five skilling won't admit defeat. Yeah he sips his diet coke start bobbing his head like a fighter approaching the ring getting himself pumped up. He nods his assistant to get the conference call rolling most of the board members around him at the conference table. Once you couldn't appear in person who dialed in including. Ken lay now serves as enron's chairman. There are also a number stock analysts and shareholders on the line with a broad smile skilling looks down the polycom speakerphone in front of him and gets to it. Well we did it. We beat our first quarter. Earnings estimates by two cents share an outstanding quarter another outstanding quarter. We're very optimistic about each of our businesses and confident that our record growth is sustainable for for many years to come any questions. Richard problem here with highfields capital. That's great about your earnings and all jeff but the investors i represent read the wall street journal and they read fortune. So we want to see it. Balance-sheet for your company and we're tired of waiting for skewing feels like a bucket of ice water was just pour overs head. We do not have the balance he completed. We will have that done shortly when we filed a quarterly report. But until we all of that together we just cannot give that to you. Skewing things that should satisfy him shocked when grubbing dares to speak again concern understand. Why mine would be an unreasonable request. I'm not saying we can't tell you. What the balance is are. We clearly have all of those positions on a daily basis. But at this point we will wait to disclose those until all the right accounting's put together in your the only financial institution that cannot produce a balanced or cash flow statement with earnings ash. Skilling sees at the board members. Look nervous this is bad. He's losing the room tugs at his collar. China affecting affable tone and says well thank you very much we appreciate. You appreciate it asshole. Skilling here's the gasps and sees the drop jaws but he smirks. Yes so what that prick took a swing at him. So skilling swing back it's called balls. They're lucky the ceo has a pair. A young associate scurries over with a note on. It is written one word apologize. Skewing takes the note. Wade's cutaway and shoves it under some papers. That sensation of being doused ice water returns call ends skilling watches the exiting board members and realizes. He hates them all. He hits this job he hates. This company must fall is beginning to hate himself. Ken lay sits in the office of the chairman. He comes and goes as he pleases. These days thought like when he was. Ceo and practically lived in this building lay looks out his window at the setting sun and reassures himself that he made the right decision. He does not think of himself as a man capable of making mistakes. Not when it comes to the important things spin a few days. Since he heard that jeff skilling called hedge fund manager an asshole conference call such a lapse in judgment would be unforgivable in the lesser man but lay trust skilling. Ceo is a high stress job. Les can't expect everyone to handle the pressure as well as heated and this morning skilling call and ask if he could meet today lay of course said yes his certain his ceo just needs a little friendly council bit of advice. Maybe he wants to personally apologize. Which is good because lay is in a forgiving mood. He's ready to share his wisdom. Yes and ron is in a bit of a storm right now. But he's certain skilling will do what needs to be done to turn things around their meeting was supposed to begin at five but it's five. Oh three it's not like stealing to be late then. 507 the c. e. o. of enron stumbles in shirt untucked unshaven face hair skew bags under his red eyes. He throws himself into the chair opposite desk asking just sits there. They feel something he hasn't felt since he was a small child. Fear this can't be the great jeff skilling. he thinks. This can't be the man that i've entrusted with my company. My legacy. What lay is looking at a drowning man. Skilling's voice quivers all spills out of and everyone.
"enron broadband" Discussed on Future Hindsight
"What's interesting is this. Corporate transparency law was passed as part of this defense bill only because there was a veto. Override trump vetoed this legislation but congress overrode his veto. So that's one good thing and the rest of my suggestions really mostly center around this idea priorities. The most important thing i think is to create a new division within the department of justice. Now that we have a new attorney general that is focused on prosecuting convicting and incarcerating. Big big-money criminals. We need to strengthen laws so that they have the tools they need to do that. And then we also need to better empower whistle blowers journalists in victims one of the most successful ways to catch fraud against the government. Is this thing called. The false claims act and it creates bounty. Fees for whistle blowers allows individual people to sue corporations that are cheating the government and if the government wants to step in they can step in. And if they don't the individual can pursue the case on their own but at the department of justice steps in and gets money recovery from the fraudster then the whistleblower themselves gets a piece of that i go into somewhat of detail about how we should expand that law and other suggestions but i think the top one is really to put a sign up at the department of justice and saying we're back in business now we're going to put the brakes on this runaway white collar. Crime epidemic yeah. That would be a great start. One of the things that we haven't spoken about yet is the magnitude of these white collar crimes and it's difficult to ascertain exactly how much it is in terms of dollars and of course it's not only our side because we have spoken already. They're also lives lost but the big impediment to that is that we don't have a national database. Couldn't actually collect this. But in terms of your estimation what is really the magnitude here of white collar crime that actually we're all paying for in some sense. That's such a good question. I looked in every possibly resource could come up with. Is that white collar crime. In america just fraud and embezzlement alone cost victims anywhere between three hundred billion dollars and eight hundred billion dollars. A year in that number is huge on his own. But let's compare that to street level property crimes and that costs only sixteen billion dollars. That's a number of the fbi. Tallies up annually so we have at least three hundred billion dollars in just fraud and embezzlement crimes and sixteen billion in st property crimes. It just completely eclipses it and we just don't have a handle on it given these gigantic numbers. What can we do to make. People change their minds about how they think about white collar crime. Because right now we're locking up people who are essentially petty thieves right but we're not locking up the people who are actually inflicting harm on our society at large. I'm thinking about this. Because i had an instance of identity fraud recently and the bank realized what it was and then i said. Can you call me back with details. Because i wanted to figure out who to report to. And here's the thing. I don't even know and i'm an expert in this area. Should i be reporting this. To which banking regulator or. Should i report this to the fbi you know. Where are they going to put this. If my purse were stolen. I report that. But how much money could that possibly be. Whatever your handbag costs and then time it takes place your credit card and that money you have in it but if there's identity fraud or some other kind of fraud we don't report it and i think that we need to demand that there's a place that we can report this to so it can be tracked and if people start getting the sense that there have a place to report it to and no one's doing anything about it i think that could create the energy behind accountability so as an everyday citizen. What are two things that could be doing to help. Demand accountability both from the doj towards white collar criminals. Or even maybe just changing the way that we talk about did such a good question. I mean i think one thing would be to reach out to members of congress and say tighten up the anti bribery laws. Because they're not going to root out corruption anymore and i think the second thing is to decide that you want to speak out whether it's on twitter whether it's to your member of congress mak- complaint to the department of justice to start making noise in any way we can so that this issue becomes pressing every time we speak out about the unfairness here. Every time we questioned why it is that no members at the sackler family or no big bankers went to jail every time. We say that it puts more pressure. I believe on those in power to do the right thing instead of just ignore it could advise so looking into the future. What makes you hopeful. I love this question looking into the future. What makes me hopeful is that we have a new attorney. General merrick arlen and we also have a new deputy attorney general monaco. And what you may not know. Is that lisa. Monaco has a background in white collar. Crime enforcement in particular. She worked as part of the enron task force and she wasn't just a minor part she secured convictions of several executives from the enron broadband division. She received the attorney general's award for exceptional service. Which is the department's highest award. So with her in at number two position under merrick garland if there ever was the skill and the opportunity to crack down on white collar on corporate crime. We have the right person in that job. Wow that's tremendous and truly hopeful. Thank you very much for being on future hindsight. And congratulations on your book. Thank.