Rating: 
Summary: Compelling
Review: A very compelling read. One of those books that you wish had waited a couple of years so the authors could comment on whatever will happen to Andy Fastow, Jeff Skilling, Ken Lay, et al. I lived in Houston during the Enron heyday and know many people who lost everything they had in the collapse. I found myself unable to detach from the arrogance of the upper management, sometimes including Ms. Watkins, who was part of the problem long before deciding to help with the solution. It will be interesting to see how it all turns out.
Rating:
Summary: Compelling
Review: A very compelling read. One of those books that you wish had waited a couple of years so the authors could comment on whatever will happen to Andy Fastow, Jeff Skilling, Ken Lay, et al. I lived in Houston during the Enron heyday and know many people who lost everything they had in the collapse. I found myself unable to detach from the arrogance of the upper management, sometimes including Ms. Watkins, who was part of the problem long before deciding to help with the solution. It will be interesting to see how it all turns out.
Rating: 
Summary: Solid good read
Review: An interesting and involving read on the rise, demise and fall of Enron. The book draws the reader into this story of of corporate greed, corruption and deception.
Rating:
Summary: A Must Read if you have Investments
Review: April 23, 2003
I'm just finished 'Power Failure' the inside story of Enron's failure. The book is by Mimi Swartz and Sherron Watkins of Enron fame. It is a very well written and entertaining: I was pleasantly surprised. Sherron was a key part in the rise and later fall of 'Enron'.Sherron actually ran some of the 'Off-Balance-Sheet' for Andy Fastnow. The book brought up lots pertinent history of 'Corporate America's' use of 'Off-Balance-Sheet' stuff and other revenue recognition policies and how the accounting firms aided and abetted. The book gave rise to one important question, how was it able to happen: it's evident that there is more fraud to be discovered. It's my opinion that this book will be included in the other now famous period pieces like: 'Where are the Customers' Yachts?' By Fred Schwed, 'The Great Crash' by John Kenneth Galbraith and
'Reminiscences of a Stock Operator' by Edwin Lefevre What happened at Enron reminds me of a 'Tom Clancy 'book, lots of movement and bad people.
Rating: 
Summary: No Energy Here Either
Review: Disappointing. Although Watkins got a lot of play as a "whistleblower," you may develop a different opinion if you read her actual memo. Nothing new, which is disappointing given her immunity from prosecution, and too long in coming. Technically proficient ghost writer.
Rating:
Summary: No Energy Here Either
Review: Disappointing. Although Watkins got a lot of play as a "whistleblower," you may develop a different opinion if you read her actual memo. Nothing new, which is disappointing given her immunity from prosecution, and too long in coming. Technically proficient ghost writer.
Rating:
Summary: A book with good utility.
Review: Everyone is familiar with the story of Enron Corporation, but do they really know what factors initiated the destruction of this world-respected company? While the outcome is obvious, few people are knowledgeable about the cause of this atrocity. The media spun this news event into a tale of good guys versus bad guys - the powerful executives hurting the weaker, low ranking employees. But the profoundness of this case is that such a scandal can occur at any corporation.
As effectively illustrated in Power Failure, the handiwork of CFO Andy Fastow blurred the lines of legality so indistinctly, that it was difficult for several renowned legal firms and accounting firms to recognize as unethical. It was not an obvious shuffling of numbers that inflated earnings over $4 billion dollars, but gray areas that bordered fair accounting and federal crime. The discreetness of the financial operations is what hid billions of dollars in debt from investors, other executives, and auditors. After reading the book, it is evident how such a scheme could slip past the CEO without notice.
The best aspect of Power Failure is that it describes the malignant financial manipulations in detail. It perfectly describes how Enron used accounting practices like FAS 25 to book earnings before they could be earned. It shows how Enron used fair value accounting as an unfair means of shuffling assets and making profits. It shows Andy Fastow's the gradual chipping to create a complex network of special purpose entities, which turned into a recipe for disaster.
Power Failure does a good job debunking many of the misunderstandings that surround the Enron case. Despite the media glamour as a hero, the "whistleblower" Sherron Watkins actually played a minor role in exposing the scandal. The mysterious suicide of accountant Cliff Baxter really had no hidden agendas. Questions can also be raised as to Ken Lay's participation in the event, despite his insider trading of stock.
Perhaps the greatest strength of Power Failure is that it can show executives of other companies what to watch out for. Students and accounting buffs will also find this a worthwhile read. Being knowledge about the Enron story may even prevent such an incident at your company.
Rating:
Summary: Could not put it down!!!
Review: Having followed Enron's collapse closely both in the news and as a bankruptcy lawyer working on the case, I thought I knew it all. Sherron Watkins saved buckets for the book. More than once I would have to stop reading and just stare at the page in sheer disbelief. And to those who think of Watkins as a traitor or who was somehow responsible for the company's collapse, not even Fastow, Skilling or their lawyers can possibly believe that one.
Rating:
Summary: Grain of salt
Review: I am a former Enron employee. In spite of the way the press (and Jeff Skilling's "befuddled" play-acting in the Congressional hearings) portrays it, many of the issues which brought about the firm's demise were not particularly secret. Sherron Watkins acknowledges and/or implies she was aware of many aspects ("I sure hope we make good use of the bad news about Skilling's resignation and do some house cleaning - can we write down some problem assets and unwind raptor? I've been horribly uncomfortable about some of our accounting in the past few years and with the number of 'redeployments' up, I'm concerned some disgruntled employee will tattle." - Watkins E-Mail to Rick Buy, from FERC). What Watkins really fails to answer in her book is why she waited so long to "blow the whistle" and why there seemed to be no other "whistleblowers." While many people all over the company were aware of the off balance sheet vehicles there seemed to be a cult of denial that either they were a problem or that they showed any signs of impropriety. In fact, some of the documents, meetings, and conversations Sherron Watkins references as well as some documents turned in for the Congressional hearings show that there were concerns with Raptor, for instance, well over a year before bankruptcy, bubbled up to the Chief Risk Officer, Chief Accounting Officer, and Chief Financial Officer. Watkins perhaps deserves credit for being the first to bring the problems to the level of CEO, but she was the last in a long series of attempts by many individuals, most of whom took greater career risks by criticizing at a time that the firm was still considered "healthy." Watkins makes her motivations unclear, which is one of the more disturbing aspects of the book - whether she is simply another example of an "Enron-cultured" individual who seizes upon opportunities rather than embracing the spirit of the touted Enron "core values" - Respect, Integrity, Communication, and Excellence.
Rating:
Summary: Power Failure: Successful book
Review: I loved this book. I tried diligently to follow this story as it unfolded in real time in the newspapers. As someone not in the finance industry, I knew it was important but found it near-nigh impossible to understand what had gone wrong and how. In this book, Mimi Swartz provides an insider's look (thanks to Sherron Watkins and many other Enron folk) while still maintaining equipoise. The complex financial instruments that were at the heart of this disaster are explained simply and elegantly. I also learned that, like the Milken/junk bond fiasco, the Enron disaster started with fundamentally important business innovation that is likely to remain with us. Bottom line: I couldn't put it down.
| 
