Rating: 
Summary: Terrific reporting on an important story
Review: This is a terrific book. It should be read by anyone who invests because it will give you a better understanding of not only the Enron case, but of the problem of corrupt executives playing fast and loose with their responsibilities to the investors who employ them. Remember, the investors own the company, not the executives. They are hired help who are supposed to look after the interests of those who have put up hard cash for stock in the corporation and who are taking the financial risk as residual claimants. (Of course, those taking risks include the employees who probably have retirement investments in the company). It is a lively read and provides a great deal of valuable information along with the intrigue and outrageous revelations.There are three story lines that flow like counterpoint. I found them riveting, but I enjoy reading about business. (You probably do as well, or why are you reading about this book?) First, we follow Rebecca Smith and John Emshwiller as they track down leads in developing news stories about the sudden resignation of Enron's young CEO, Jeff Skilling. This seemingly minor story develops into the amazing and unexpected collapse of Enron as its corrupt financial dealings and improper accounting practices are exposed. We also follow the race between the authors as reporters for the Wall Street Journal racing against the New York Times, the LA Times, and the national TV news programs to get the story out first. Second, we get the story of Enron and how Ken Lay, Jeff Skilling, and especially Andy Fastow worked hard to keep the true state of the company hidden from investors and regulators. We see how they drew others into their plans and punished those who wouldn't go along. The story makes clear how Andersen was brought down by an account team that allowed their lust for tens of millions of dollars in consulting fees to corrupt their accounting responsibilities. Third, we see how both the climb and collapse of Enron affected average and honest people just trying to do their jobs. It was easy to get caught up in the rise of Enron and to believe in what was going on because the sickeningly corrupt practices were kept hidden for so long. Some of these executives, who reaped untold millions in personal rewards, might argue that everything was disclosed as required by letter of the regulations. But it seems to me that it was all just a way of lying while going to the right up to the edge of violating the letter of the law and then slipping over. Enron and Andersen management ended up not being as slick as they thought and ended up destroying both companies and hurting tens of thousands of innocent folks. Another virtue of this books is that it is straight reporting. Rather than being advocacy journalism, it reports the facts of the case as they unfolded. I like this approach a great deal and think it strengthens the message of the book. You are free to make your own interpretation of the events presented. The authors do express their own reactions to certain events and revelations, but do not draw final conclusions of guilt or innocence. Nor do they try to apportion blame, although they do report comments and judgments of others who do. Really, I wish this book would be read widely because it would help potential investors realize the need they have to pay close attention to the management team of companies they choose to invest in. They also need to educate themselves as much as possible on the industries and accounting practices of not only the companies they invest in, but also their competitors. Such awareness can help set off the "something isn't right" detector. Unfortunately, when things appear to be going well hard questions are usually not asked and when things fall apart it is usually too late to start asking. This is a fine book that will have a permanent place on your shelf of business books.
Rating:
Summary: Enron?s collapse was inevitable
Review: Wall Street Journal journalists Rebecca Smith and John R. Emshwiller did not originally see Enron's looming disaster. They had long reported on the company's many trials and tribulations. Yet, they had no reason to suspect that Enron's top executives, some perhaps unwittingly, had essentially been running a criminal empire. To be blunt, Smith and Emshwiller were merely in the right place at the right time. This book concerns their diligent reporting after it became obvious that something was seriously wrong. Even so, it took them awhile to realize that Enron was rapidly heading towards bankruptcy. Enron's collapse was actually inevitable, but it wasn't obvious to those on the outside looking in. Heck, I live in the city where Enron is headquartered---and heard only only good things concerning this previously dominant business entity. The reader should pay particular attention to Andy Fastow. He was the beginning and end of the whole fiasco. Nothing financially questionable can occur without the full cooperation of the chief financial officer. The other players in this drama could at least pretend that they were unaware of Enron's ongoing shenanigans. This is indeed why the government prosecutors are having a difficult time charging others with criminal misbehavior. The latter might plausibly be able to claim that Fastow misled them. The authors provide ample evidence that for most the Enron situation was similar to a proverbial blindfolded person placing their hand on a elephant's leg. They still can't tell what type of animal it is until the blindfold is removed. Many small picture perspectives rarely add up to a vision of the big picture. Smith and Emshwiller show us a cultural milieu where asking hard questions was not encouraged. The money was flowing and the future looked bright. Why be a nuisance when it was usually better to look the other way? 24 Days may not be the final word on the Enron mess. That may not be available for another five years. Nonetheless, this book is a must buy. These WSJ reporters provide a disturbing look at corporate malfeasance. This may help us to prevent another Enron is the future.
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