Enron's malfeasance harms energy sector, economy

摘要

Enron was once dubbed the most innovative corporation in America and was clearly one of the most admired energy companies in the world. Today Enron has become a dirty word, with the company and its executives having come to personify corporate greed and malfeasance. While members of Congress vilify Enron in hearings that focus on off balance sheet special-purpose vehicles and the shortcomings of 401k retirement plans, the true impact of Enron's failure is being overlooked. Enron's unprecedented collapse will have pervasive adverse effects on the economy and, specifically, the energy sector. The failures of Enron's executives, corporate board and auditors have created a crisis of confidence in the equity and fixed income markets. Investors question the credibility of financial statements and, hence, the reliability of information upon which investments in corporate securities are made.