Is this woman stupid or was she victimized by Enron?

[gymnpoppa]

uhhh, you can say all you want about diversification....but the fact still remains that Enron executives are criminals and SHOULD be tried for something that could bring on capital punishment, I'm serious. This absolutely disgusts me.....and any link to GW wouldn't surprise me in the slightest. Look at the FACTS that are KNOWN.......executives from any smaller company would be residing in jail by now, but somehow these guys are still walking around. I'm in awe of our CJ system, these men should be flogged naked in the streets.

There are NUMEROUS links to GW, Cheney, Karl Rowe, James Baker, Phil Gramm. Rowe was on Enron's board of directors just prior to coming to Capitol Hill, Gramm's wife was/is a Enron
director, Cheney formed a "necessary" energy plan with Enron executives earlier this year. Gramm's wife is to be mentioned in lawsuits...no wonder he decided not to run. Before joining the board in 1993, Gramm's wife as chairperson of the Commodities Futures Trading Commission, chose not to extend the agency's regulatory oversight to energy. After she joined the Enron Board, Enron lobbied Congress to pass the Commodity Futures Modernization Act, which continued this energy deregulation. The act, was co-sponsored by her husband, Phil.

Everyone of Bush's White House staff, including himself and Cheney, owned large chunks of stock in Enron, they all sold back their stock in June, July, and August. The investigative accounting arm of Congress is attempting to investigate the meeting Cheney had with Enron executives for the energy plan, but the White House refuses to allow the details of the meeting, which was closed to energy executives, and other lobbyists. Not associated with Enron.

If we don't reform campaign finance, and disallow administrations with close ties to special interests groups, politics will continue to be a cesspool of corruption. Unfortunately most Americans aren't aware, or could care less, until the effects hit their wallets. It's too late then.

 

[musclecrew]

funny thing is about 2 months ago this company wanted me to come work for them. I almost jumped at the chance since I live in PA and they wanted me to relocate to a Backersfield, CA site. I declined because of a significant other (ok, maybe SEMI-significant now). ANyway, guess it was a good decision in retrospect

 

[ZenMachine]

Her mistake was in putting all of her faith in a single entity. She was relying on them for her current income, her insurance, and her future. Nothing defines having all your eggs in one basket more than this situation.

This doesn't excuse Enron from some responsibility, but this lady is not without fault.

Zen

 

[BuggyWhips]

It's hardly her fault. How many people out there have more then 60% of their portfolios filled with stock from the company they work for? Im sure Enron gave her great option packages which left her quite wealthy. I think everyone of those executives should be in Jail right now..There are some serious ethics issues out there and th victims of this should get some sort of payback from the evil do-ers.
Plus they wouldnt let her sell off. She shouldve been able to sell off with paying a penalty or something..I would jumped out ASAP..
Kev

 

[18echo]

yes, dirversification is the key to successful investing. but more thatn that lady being stupid, enron was in violation of the law. the workers were not allowed to sell their shit when they was what was happening. that is some cold shit.

 

[ZenMachine]

It's hardly her fault. How many people out there have more then 60% of their portfolios filled with stock from the company they work for? Im sure Enron gave her great option packages which left her quite wealthy. I think everyone of those executives should be in Jail right now..There are some serious ethics issues out there and th victims of this should get some sort of payback from the evil do-ers.
Plus they wouldnt let her sell off. She shouldve been able to sell off with paying a penalty or something..I would jumped out ASAP..
Kev

I don't disagree that there should be some repercussions for management, but she does have a degree of responsibility. It doesn't make any financial sense to tie all of your earnings current and future, as well as your health benefits etc. to a single company. Far too much risk.

The not letting her sell off part, again I agree. She should have been able to sell and should be compensated for that.

 

[BuggyWhips]

There is going to be an investigation into this and she probably will get money back...Who knows, maybe she has a million in other stocks as well. But look at the people from MSFT, they had options back since the mid 80's and most of the original secretaries and maintainance people are millionaires. Enron's employees probably hoped for the same fate.

As for holding the stock, if she was told that before she aquired it, then it is allowed to happen, my company just went public last week and for everyone that bought into the IPO, there is a 16month holding period. From what I read though, the managers of the stocks changed hands and where they were allowed to sell it, they werent to at that point of the new management.

The investigation could probably take months and everyone responcible should be thrown in jail. Or better yet make them work so all the poor folks who lost everthing can retire..
Kev

 

[HansNZ]

Wiser minds know how foolish it is to put all your eggs in one basket.

But a consideration I think has been overlooked on this thread is that the average Joe on the street isn't that savvy about such things. Few people understand such issues and most people are easily manipulated (note the continuing existence of infomercials), so I think saying she made stupid choices is only half the issue.

We need to bear in mind the fact that many people are not now, and never will be, clued up about such things. As such they need to be offered an element of protection from unscrupulous manipulative activities.

Where there is an opportunity to gain advantages by exploiting people's lack of understanding you will always find opportunistic behaviour such as the behaviour of the management of enron.

 

[MattTheSkywalker]

The Enron CEO actually stated that he had no idea the company was in anything but excellent shape.

It is interesting that he made his statement from his attorney's office.

He should pay back every dollar he ever received in bonuses or converted options.

It is perfectly logical, to invest in the company you work for, if they are showing coninued growth, which enron was, according to its own executives. I'd like to see some of your investment portfolios. I'd be willing to be the overwhelming majority of you don;t even have the $20K she was left with.