Justice served

<p>40 former Enron traders must return last bonus $$$$. Going to workers who were not paid.</p>

<p>Hurrah!! This is good...</p>

<p>Not all conservatives condone this kind of behavior by companies. The trials of Skilling (boo hiisssss) and Ley (sp?) are coming up too.</p>

<p>Surprised me. I thought this was going to be a thread on the execution of Tookie Williams.</p>

<p>I thought so, too, concereddad.</p>

<p>im glad its not.....that would have shown just how stupid ppl on CC really are</p>

<p>I think the workers should get to auction off the traders' body parts (Lay's and Skillings' too) when they die. ;)</p>

<p>haha but after this ...wouldnt ppl think the parts are cursed?</p>

<p>The Enron traders were in 2001 viewed as the only viable engines of profit left in the corpse known as Enron (well, the pipelines were valuable, too, but Dynegy and the banks had claims to them so any one seeking to exploit value from them would be subordinated to mollusks at the bottom of the financial sea), so they persuaded management they needed retention bonuses. The problem was that Enron's trading business, where they most often weren't just brokers but an actual party to their gas trades, sucked up an enormous amount of capital and required a stable balance sheet. Counterparties did business with Enron not only because they had gas assets to distribute and more information in the gas market than any others (they did), but also because they often financed the transactions. Once these attributes were gone - and in late 2001 - Enron's balance sheet was a veritable train wreck - even the best traders in the world in this relatively parochial market were useless. It doesn't surprise me that in hindsight the bankruptcy courts viewed the payments as prolifigate. </p>

<p>Since this is a college board, I must comment as to a prevailing sub-rosa theme I find running through Enron. I was struck by how Enronites in their pursuit of irrational get rich schemes were imbued with the Harvard/Wharton MBA culture, which exalts investment banking and management consulting over all other endeavors - and inculcates a rather obnoxious form of arrogance that isn't often productive. When a class of people are taught they are smarter than everyone else (which isn't necessarily true, in Skilling's case, as a Baker scholar at Harvard, he was brilliant - but his brilliance extended to such narrow conceptual paradigms that he could never see the big picture - hiring and promoting criminals such as Fastow (and his chief accounting officer) without any concept as to the duties they had to shareholders and the public), and are taught that important matters of production, expense control, honesty, and vigilant reporting are mere matters to be manipulated, well, an Enron visits us. It makes me cringe when I see young people aver that they want to go to Wharton to be an investment banker, with very little idea what it is about (i.e., it is a sophisticated form of cold-calling with potentially high pay), while schools such as Purdue's Krannert, which rarely gets mentioned on a board like this, offers an excellent education is things that are useful - like logistics, production management, etc, and turns out people with a stellar reputation for well, those things known as hard work and ethics. Yes, my complaints may be overgeneralizing to an extent, but I think the phenomena real - and it is something the elite b-schools ought to listen to (their applicant numbers are down, so maybe they will).</p>