the CAMP ENRON Report


CAMP ENRON:
... gateway to the next Progressive Era?

Some say it's nothing but a train wreck ... roll in the big cranes, clear the track, see what the crew's been smoking. If I thought so, I'd not be writing this ... and if they thought so, they'd not be drumming so hard.


For a brief orientation, see this
Welcome to Camp Enron

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Camp Enron Archives
01/01/2002 - 02/01/2002 02/01/2002 - 03/01/2002 03/01/2002 - 04/01/2002 04/01/2002 - 05/01/2002 05/01/2002 - 06/01/2002 06/01/2002 - 07/01/2002 07/01/2002 - 08/01/2002 08/01/2002 - 09/01/2002 06/01/2003 - 07/01/2003

NOTE to READERS:
(2) All "major" articles of older material have now been imported, some with updates worth perusing. We'll keep it all on the main page for a while, will add a few loose pieces of history, will trim the main page and index the archives for convenience later.


OUR DEPARTMENTS:

the COGENT PROVOCATEUR:
free agent, loose cannon, pointy stick ... taking an imposing analytic toolkit out of the box, over the wall and into the street ... with callous disregard for accepted wisdom and standard English

reading the tea leaves from original angles, we've led with uncannily prescient takes on the federal surplus, the dotcom crash, the "Energy Crisis", the Afghan campaign, the federal deficit.

More where those came from ... stay tuned.


For brief orientation, see this
Welcome to CP


CAMP ENRON:
... gateway to the next Progressive Era?

For a brief orientation, see this
Welcome to Camp Enron

OTHER GOOD STUFF:
Many thanks to Tony Adragna and Will Vehrs, still shouting 'cross the Potomac at QuasiPundit. Early Camp Enron material can be found in QP's Dispatches department.
Wednesday, May 22, 2002

 
--- Enron Tax Chief Spills Guts to WaPo Reporter ---

Washington Post has a killer piece on Enron's use of one-shot tax gimmickry to generate a substantial fraction of reported profits. (30% in 2000, nearly $1B overall.)

Former general tax counsel Robert J. Hermann disclosed a series of creative tax schemes, most involving deals with offsheet and offshore entities.
... more and more of the company's reported profits came from one-time tax transactions ... The gap between what he and fellow managers thought they could reasonably deliver and the profit targets top executives demanded was known inside Enron as "the stretch." ...

"When the number got up to $300 million [last year] I said, 'Rick, this is going to have to stop,' " Hermann said. " 'We have to come up with a way to get this through earnings -- through regular business.' " ...

Lawyers for the company and its creditors are now left trying to sort out which assets Enron still owns and which may be claimed by outside participants in the tax transactions. ...

"We took advantage of what the rules are. If you know the rules you don't have to break the rules, you just use them. That's what lawyers and accountants do."
Well worth the long read ... extra grist for the reform mill ... and extra grit under the contact lenses of business-as-usual lobbyists.