Wednesday, July 12, 2006

Book: 24 Days by Rebecca Smith & John Emshwiller

The full title is actually 24 Days: How Two Wall Street Journal Reporters Uncovered the Lies that Destroyed Faith in Corporate America
And it's quite an in-depth look at the Enron saga from start to finish, written by two reporters who were intimately familiar with the industry, the history, the company and the individuals... this is a ring-side seat, basically.
Just finished reading this book, and I have to say two things:
  1. What insanely massive amounts of money are we talking here? The book says that Enron borrowed about $3bn and 5 days later had cash holdings of about $1bn, but they also mention a little earlier in the book that Enron had first used it's entire credit line with it's banks, to the tune of another $3bn ... that's some serious money... so they went through about $5bn in cash in about 15 days. Woah.
  2. For all the noise going on about the fact that a lot of this is because of a loss of investor confidence, (which led to a major cash crunch) which was caused by the fact that they had all these mysterious, non-disclosed & extremely complicated special purpose entities & LLPs and outside partnerships etc etc, I have to say I feel a bit let down.. I was looking forward to getting a proper breakdown of at least a couple of the many LJM, raptor, hawaii 125-0 and so on... something detailed to say OK, this is EXACTLY what happened with LJM, from start to finish. The closest they got was with explaining the Nigerian barge thing, which was pretty tame & small-fryish.

2 Comments:

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At 14:22, Blogger domx said...

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