Zeus: As AI bubble builds, an uncomfortable anniversary looms
Enron's collapse still has lessons for today
This column is for Callaway Climate Insights subscribers only, but it’s OK to share once in a while. Was it shared with you? Please subscribe.
SAN FRANCISCO (Callaway Climate Insights) — This month is the 24th anniversary of the beginning of the collapse of Enron.
A spectacular earnings warning in October 2001 led to a dramatic selloff in the energy trading giant’s shares, and by December the Texas company would become one of the largest ever U.S. bankruptcies.
It would be followed by the collapse of telecom giant WorldCom the following year and then the collapse of Lehman Brothers six years later. All three involved charismatic CEOs who were able to talk investors past growing accounting problems right up until the moment the bubble burst.
In Enron’s case, former CEO Ken Lay was so popular in Texas and in energy circles that there was talk for a moment that President George W. Bush might name him energy secretary.
Sound familiar?
Keep reading with a 7-day free trial
Subscribe to Callaway Climate Insights to keep reading this post and get 7 days of free access to the full post archives.