Pipe Dreams: Greed, Ego, and the Death of Enron

by Robert Bryce

After the shocking collapse of Enron in fall, 2001 came an equally shocking series of disclosures about how America's seventh-largest company had destroyed itself. There were unethical deals, offshore accounts, and accounting irregularities. There were Wall Street analysts who seemed to have been asleep on the job. There were the lies top executives told so that they could line their own pockets while workers and shareholders lost billions.

But after all these disclosures, the question Why? Why did a thriving, innovative company with rock-solid cash flow and reliable earnings suddenly flame out in a maelstrom of corruption, fraud and skulduggery? The answer, Texas business journalist Robert Bryce reveals in this incisive and entertaining book, is that bad business practices begin with human beings. Pipe Dreams traces Enron's astounding transformation from a small regional gas pipeline company into an energy Goliath...and then tracks step-by-step, business decision by business decision, extra-marital affair by extra-marital affair, how, when and why the culture of Enron began to go rotten, and who was responsible.

The story of Enron's fall isn't just a story about accounting procedures; it's a story about people. Bryce tells that story with all the personality, passion, humor, and inside dope you'd hope for, and the result is an un-putdownable read in the tradition of Barbarians at the Gate and The Predators' Ball.

Genres: Business, History, Nonfiction, Politics, Finance

440 pages, Paperback

First published October 8, 2002

About the author

Robert Bryce has written three books, his newest being Gusher of Lies: The Dangerous Delusions of Energy Independence. He was hailed as a 'visionary' by the New York Times, a fact he often repeats to his children and his dog, Biscuit.

Reviews

[Writemoves · Rating 4 out of 5]

If you enjoyed the TV series Dallas with JR and the rest of the Ewings, you'll enjoy the stories within this book. Greed, affairs, duplicity, stupidity and treachery are recurrent themes. What bothers me most about the Enron story is how the regulators, analysts, press, SEC and federal government allowed many of the business and financial shenanigans to go on so long.

There are very few heroes in this book. When everyone is making a lot of money, no one wants to pull back the curtains and let everyone know how things are really done.

There are a number of very good books and articles about the Enron fiasco. This is close to the top...

[Agustín · Rating 3 out of 5]

Describes to a great level of detail the events that led to the failure of Enron, then considered one of the largest companies in the U.S. and one of the most innovative. It offers interesting details obtained from the testimonies of many former employees. It's a great tool to understand the causes that led to the failure of such a company, and its basic concepts can be applied to other businesses.

[Amanda · Rating 3 out of 5]

It's amazing how disgusting and corrupt people can be.

[Steven H · Rating 5 out of 5]

A MORE "SENSATIONALIST" PORTRAYAL OF THE FALL OF ENRON

Robert Bryce has written other books such as 'Power Hungry: The Myths of "Green" Energy and the Real Fuels of the Future,' 'Gusher of Lies: The Dangerous Delusions of "Energy Independence",' 'Cronies: Oil, The Bushes, and the Rise of Texas,' 'America's Superstate,' etc.

He wrote in his "Author's Note" to this 2002 book, "My goal in writing this book was to explain why Enron failed. I did not attempt to tell every facet of the Enron story ... Instead, I sought to explain why the company got so bollixed up... My premise throughout this book is that Enron's failure wasn't due to faulty accounting or poor regulation... it failed because key leaders at Enron lost their moral/ethical direction at the same time that the company was making multibillion-dollar bets on fatally flawed projects."

He suggests the "The Enron meltdown shook American investors' confidence in the entire financial system. American investors, seduced by the irrational exuberance of the Internet Age and rocked to sleep by the greatest bull market in history, were suddenly hit with the ice-cold water of reality: Even the bluest of blue-chip companies could disappear, or be made nearly worthless, almost overnight." (Pg. 7) He summarizes, "the answer to why Enron failed could be boiled down to one word... It was the culture, stupid." (Pg. 12)

He suggests that the massive stock option grants given to executives "created a huge incentive for the company's top management to cut corners, to keep important information hidden." (Pg. 213) "And where was the Enron board while company insiders were making gazillions of dollars? They were, as usual, asleep at the wheel." (Pg. 228) Their auditor, famed accounting firm Arthur Andersen, eventually "became so reliant on Enron that it simply could not afford to lose the company as a client." (Pg. 237) Anderson ultimately collapsed in wake of revelations that they shredded documents, etc.

As Enron began to slide toward bankruptcy, insiders began quietly dumping their stock. (Pg. 283) Soon, CEO Ken Lay admitted that "Enron was losing money, lots of money," and he "casually dropped another bombshell: Enron was taking a $1.2 billion reduction in shareholder equity." (Pg. 310) "So where was (president) Jeff Skilling during the crisis? Enjoying his cash." (Pg. 320)

This book is a very useful complement to other Enron books such as 'The Smartest Guys in the Room.'

[Vasif · Rating 5 out of 5]

Must to read for all accountants how NOT to be creative!

[Margot Timbel · Rating 4 out of 5]

Unbelievable except it is a true story. Corporate governance nonexistent. Individual greed run amok.

[Frank Dodd · Rating 3 out of 5]

Starts out very good but slows down in the middle and picks up speed toward the end. Just like the corporation. The info offered is often shocking. The stock schemes are confusing a person not knowledgable in the stock market. Its often appalling what you read and how we are now affected by it today.

[Bethany · Rating 4 out of 5]

Not normally the type of book I would read, but I thought it was great. Good for me to be a little more educated about a world I don't know a lot about. Yet sad to see how out of control & seriously wicked people can get!

[anwar · Rating 5 out of 5]

أستمتعت جداً بقراءة النسخة العربية من الكتاب
معلومات مفصله عن كيفية تلاعب الاعضاء التنفيذيون بالشركات المساهمة بالحسابات و الميزانيات لتمرير مكافأت هائلة لهم و من ثم لتذهب الشركة و المساهمون في ادارج الرياح
أتسأل كم أنرون عندنا بالأسواق الخليجية و العربية

[Toesnorth's mom]

excellent, Enron story

[Aharon · Rating 1 out of 5]

Just in case your favorite part of moral and financial bankruptcy is strained puns.