close

Privacy guaranteed - Your email is not shared with anyone.

Enron Explained

Discussion in 'The Powder Keg' started by Doglips, Mar 29, 2002.

  1. Doglips

    Doglips G&G Newbie

    ENRONism - You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows. The milk rights of the six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company. The annual report says the company owns eight cows, with an option on one more. When finally discovered, Democrats try to take advantage of the situation by linking missing cows to Republicans