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Downfall and individual bankruptcy: Given that the growth a long time ended and Enron confronted increased Competitors in the energy buying and selling business enterprise, the corporate’s profits shrank swiftly. Stressed from shareholders, business executives started to count on dubious accounting tactics, together with a technique referred to as “mark-to-current market accounting,” to cover the difficulties.
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Arthur Andersen also arrived underneath rigorous scrutiny, As well as in March 2002, the U.S. Department of Justice indicted the organization for obstruction of justice. Customers attempting to assure investors that their monetary statements could satisfy the highest accounting benchmarks deserted Andersen for its competitors. They were being quickly followed by Andersen workers and entire offices.
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