What brought about Enron’s collapse? This question was on the minds of thousands of investors worldwide when Enron, the countries seventh largest corporation at the time, announced it was restating its reported finances in January, 2001. Enron’s founder, Kenneth Lay, announced that the company had an over $600 million loss for the third quarter of 2001 and because of the hidden debt that the company was worth an estimated $1.2 billion less than they thought. This announcement came less than a month after 16 of 17 securities analysts had the company rated at either a buy or a strong buy. Two weeks later, company investors and employees were informed that company earnings for the past 5 years were less than reported by about half a billio
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