Hide repeated speculative losses
Hide huge debts incurred in financing unprofitable new ventures, and
Inflate the value of its stock in spite of economic downturn and of nonperforming business units. According to Frank Partnoy’s Congressional testimony, most of what Enron represented as its core business divisions were not making money and it also appears that the same was true of the profits and losses of Enron’s derivatives operations, as we saw in Chapter 9. More cases of losses concerning derivative financial instruments are presented in this chapter.
KeywordsCash Flow Hedge Fund Toxic Waste Credit Institution Credit Derivative
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