Enron's Accounting Scandal and Impact

The SEC is now investigating Enron's accounting procedures

after the company admitted it

inflated earnings by more than half a billion dollars and hit another half a

billion in debt off its books.

Enron's former CEO, Jeff Skilling,

said last summer, We are the good guys. We are on the side of angels. But in August,

Skilling abruptly resigned after a mere six months on the job. Somebody said that

there was a picture of Jeff Skilling on a dark board up on one of the floors

and that pretty well sums it up, you know, that people do feel betrayed.

Before he left, Skilling cashed in

more than 17 million dollars worth of stock.

Clearly the management that sold those shares made out better than the employees

who were forced to hold the shares. The shares are worthless now.

We have to pay the ultimate price.

It's three weeks before Christmas and we have nothing.

CEO Ken Lay, who put the company name on Houston's new Enron field,

has been a close friend and a major contributor to the Bush family.

But there is no sign at this

point that the White House is doing anything to bail this company out. Can they?

I think it would be very difficult for anyone to save Enron at this point.

And many Enron employees will lose more than just their jobs.

At the outset of this year, fully half of the employees 401k

money was in company stock, a stock that has now fallen 99 percent this year.