Lay and Skilling guilty

[Ironhorse]

Enron former chief executive Jeffrey Skilling and founder Kenneth Lay were found guilty Thursday of conspiracy and fraud in the granddaddy of all corporate fraud cases.

On the sixth day of deliberations, a jury of eight women and four men convicted the former executives of misleading the public about the true financial health of Enron, whose collapse in late 2001 symbolized the wave of corporate fraud that swept the United States early this decade.

Click here for story (http://money.cnn.com/2006/05/25/news/newsmakers/enron_verdict/index.htm?cnn=yes)

I really thought they would get away with stealing the retirements of thousands of workers and defrauding billions from investors. Now they are going to prison. Chalk one up for the working man. I smell justice in the air.

[J.T.]

Ok so when do I get my money back? :)

[Ironhorse]

Ok so when do I get my money back? :)

I don't smell that much justice.

[J.T.]

So whats gonna happen to them? They go to a low security jail where they get TV's and dinghies?

[deballedtomcat]

The message you have entered is too short.Please lengthen you message to at least 10 characters.

That is what this board tried to do when I wanted to make my reply,ergo since I refuse to jump through hoops or expand upon a simple concept,I won't bother.

[Fossil]

So whats gonna happen to them? They go to a low security jail where they get TV's and dinghies?

Nothing. They get to stay out of prison on bail while their appeal works it way through the system.

[GLOBALIST]

guilty as charged

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[IrishNed]

So whats gonna happen to them? They go to a low security jail where they get TV's and dinghies?There's no 'Hard Time' for white-collar criminals (Atlanta, for example). They will probably wind up in one of those Institutions collectively called 'Club Fed.' Some (former Military Bases) have well equipped Gyms, Golf Courses and swimming pools. Think about Martha Stewart ...

[Pajman]

There's no 'Hard Time' for white-collar criminals (Atlanta, for example). They will probably wind up in one of those Institutions collectively called 'Club Fed.' Some (former Military Bases) have well equipped Gyms, Golf Courses and swimming pools. Think about Martha Stewart ...
Martha was a celebrity and the crime she committed was nothing compared to this.
Enron executives were criminals who stole billions. Kenneth Lay is likely to die in prison.

[kududoodoop]

About damn time bush's best friends and top campaign contributer of 2000, are finally going to ROT in jail.

[Garihm]

About damn time bush's best friends and top campaign contributer of 2000, are finally going to ROT in jail.

I like how in every thread you post in here you finds ways to tie in Bush. Globalist and you should marry.

If it makes you feel any better, I'm conservative and I'm glad their going to jail for what they've done; and Bush's best friend, lol.

[kududoodoop]

I like how in every thread you post in here you finds ways to tie in Bush. Globalist and you should marry.

If it makes you feel any better, I'm conservative and I'm glad their going to jail for what they've done; and Bush's best friend, lol.

bush only let enron go while they were screwing over california, and enron was bush's top campaign contributor, and they WERE good friends.

[Garihm]

bush only let enron go while they were screwing over california, and enron was bush's top campaign contributor, and they WERE good friends.

So Bush should be a mind reader to see who is corrupt and who he should make friends too or not? Lay seemed to always have supported republican public officials so i see no reason why not to be a campaign supporter with the amount of money he had. Also, according to wikipedia.org, Lay gave $61,960 to Democrats in fundraisers too.. Its just sad to see he fucked up Enron so badly and so many people, he definately deserves jail time.

And don't claim the entire company supported bush, that was only Lay. Its a private business and Bush had nothing to do with it.

[shade]

I am really getting tired of people feeling sorry for those who lost their retirement savings. It is their own damn fault. That is what diversification is for.

The only people who lost their life savings were the most greedy of them all.

[bergshadow]

So Bush should be a mind reader to see who is corrupt and who he should make friends too or not? Lay seemed to always have supported republican public officials so i see no reason why not to be a campaign supporter with the amount of money he had. W and "Kenny-boy" go way back, and the corruption involved W and his administration - the deregulation of the financial and energy markets that Lay found so profitable was part of W&Co's quid for the quo, starting long before W was Pres.

Cheney met with Enron officials several times, in the months leading up to revision of federal energy policy.

Oficials in W's administration came from Enron, many others were closely connected with Enron. It isn't just Lay.

When W campaigned in 2000, he often traveled in an Enron corporate jet. In the Florida vote mess, Republican thugs were brought in by Enron jet to intimidate and threated vote counters in critical districts.

W did not have to read minds, to be aware of corruption at Enron.

And from our point of view, the illegal stuff isn't the main problem - it's the stuff the US government allowed Enron to do legally that is the main corruption problem.

[kududoodoop]

W and "Kenny-boy" go way back, and the corruption involved W and his administration - the deregulation of the financial and energy markets that Lay found so profitable was part of W&Co's quid for the quo, starting long before W was Pres.

Cheney met with Enron officials several times, in the months leading up to revision of federal energy policy.

Oficials in W's administration came from Enron, many others were closely connected with Enron. It isn't just Lay.

When W campaigned in 2000, he often traveled in an Enron corporate jet. In the Florida vote mess, Republican thugs were brought in by Enron jet to intimidate and threated vote counters in critical districts.

W did not have to read minds, to be aware of corruption at Enron.

And from our point of view, the illegal stuff isn't the main problem - it's the stuff the US government allowed Enron to do legally that is the main corruption problem.

good info berg, unfortunately you know he's going to find someway to blow off this information.

[Garihm]

In the Florida vote mess, Republican thugs were brought in by Enron jet to intimidate and threated vote counters in critical districts.

W did not have to read minds, to be aware of corruption at Enron.

And from our point of view, the illegal stuff isn't the main problem - it's the stuff the US government allowed Enron to do legally that is the main corruption problem.

I'd like to see some sources please.

[pinger]

I am really getting tired of people feeling sorry for those who lost their retirement savings. It is their own damn fault. That is what diversification is for.

The only people who lost their life savings were the most greedy of them all.

Your a douchebag shade. What about the Enron employees who had a lot of equity via stock as rewards for service?

Many people carry a majority of their stock in a stable, long term defensive blue chip stock, like Enron was 'supposed' to be.

The fact is that these people were failed by the financial regulation and by Enron, as opposed to being risk taking investors.

[Pajman]

Your a douchebag shade. What about the Enron employees who had a lot of equity via stock as rewards for service?

Many people carry a majority of their stock in a stable, long term defensive blue chip stock, like Enron was 'supposed' to be.

The fact is that these people were failed by the financial regulation and by Enron, as opposed to being risk taking investors.
I agree. The fall of ENRON was so massive that even a diversified portfolio (especially for those who used the WA mkt. capitalization method) would've taken a hit.
What's better than diversifing your portfolio is becoming financially literate. As Warren Buffett says, diversification is a protection against ignorance.
I don't expect amateurs to be able to conduct professional level financial analysis. However, investors should at least be able to do some basic CF analysis. Looking at the fundies of ENRON raised some red flags.
There are several reasons why I personally stayed away (and advised people to stay away at the time) from ENRON, but the major one was this: thier EPS to FCF growth ratio was way out of proportion.
The company's EPS growth was steady for more than 10 consecutive Qs, but they were burning cash fast; the added back non cash capital far out weighted the net income almost every Q. At this point, I knew that there was something wrong with ENRON's financials. The numbers didn't make any sense.
Basically, ENRON was somehow running without cash! A company's profit cannot keep growing without generating cash flow from operations.

Anyway, stay away from stocks that are hyped up.

[shade]

Your a douchebag shade. What about the Enron employees who had a lot of equity via stock as rewards for service?You sell it. In my previous job I had stock options. I always sold them the day that they were excercised to book my automatic 15% gain and then I bought other stock with them so I was diversified. The only douche bag here is you for implying that there is EVER an excuse to not be diversified. Once you start thinking a stock is good or that you have the midas touch to the point that you dont need to be strictly diversified it is time to step back because you are about to get burned hard.

Many people carry a majority of their stock in a stable, long term defensive blue chip stock, like Enron was 'supposed' to be.Many people are also retarded. Under no circumstances should any single stock be more than 20% of your holdings. If that company goes bankrupt, you are just down 20%.

The fact is that these people were failed by the financial regulation and by Enron, as opposed to being risk taking investors.:banghead:

Not being diversified IS being a very high risk investor.

would've taken a hit.Taken a hit is not the same as losing your life savings. In that time period everyone took a hit from a big range of events including 9/11. The fact is that if you were actually wiped out, then you did not have diversification. If you did not have diversification then you are one of two things:
1. Not competant enough to manage your own investments. Give your money to a financial advisor.
2. Greedy and got what you deserved.

However, investors should at least be able to do some basic CF analysis.Or even just know enough to recognise that someone else should handle your money for you. Maybe they need to buy some vanguard funds or broad capital appreciation funds if they do not have a direct financial advisor.

The company's EPS growth was steady for more than 10 consecutive Qs, but they were burning cash fast;HUGE red flag! That cash is going somewhere!