Enron and Arthur Andersen

[mlm668]

I agree that 401k is a good investment.  But there are so many folks out there that don't get the real picture.  Its not a savings account.  Any money you put in it may not be there a month later.  I have chosen not to participate in ours because the administrator was annoyed that I asked questions.  That told me that it was not going to be administered well.

However, you are right about Social Security.  We have no guarantee that it will still be here in 20 or 30 years.  The main point I was trying to make is that any person who invests money should be on top of those investments.  Notice what is going with the companies and ask questions.  Anyone who doesn't, is only asking for trouble in my opinion.   No I don't believe Enron's employees deserved what they got, but I still have a hard time believing they didn't see some signs.  This problem didn't happen overnight.

Michelle

[blufire21]

According to some of the articles I've read, the CEO said in a press release that the company was doing great and that they had a big future ahead of them.  The next day they announced all the problems they had.  They also put a freeze on the stock so employees could not sell their shares.  Enron hid this very well for a long time.

Ellen

[goldenearring]

mlm - you are right that, like writing wills and buying insurance, learning about finances is something a lot of people avoid.  Our company hires an outside financial guy to come in once a quarter and meet with people who want to learn more or who want guidance on making decisions relative to their individual plan.  I don't know whether this is obligatory by law, but I almost think it is.  You may want to dig into the laws surrounding this stuff and encourage your employer to set up at least an annual meeting to educate folks, or to get literature that would do the same.  

Unfortunately, in the 401(k) area, the old saying, "You can lead a horse to water, but you can't make him drink," is very true.  Our company has a tremendous 401(k) plan and match, but many feel that they can't afford to put the % match into it.  I convinced one single mom to at least check out with payroll what effect contributing the match would have on her paycheck, because I didn't think it would be much.  She then increased from 1/2% match to the 6%.  Previously, she was convinced that she couldn't afford even $1 more a month (yet she was smoking about $6 of cigarettes a day . . . yes I mentioned that after asking permission to comment on a personal observation that might help her put things into a different perspective).  She won't be a millionaire at the current rate she's going, but something is ALWAYS better than nothing.  I have to remember that if I had never worked with finance people, I might still not be preparing for my retirement, and that is a scary thought.  I guess all there is to do, mlm, is talk to one person at a time until our respective little corners of the world are covered.  Ciao!  GE

[daisylee]

Having several freinds that have worked both at AA and Andersen Consulting (which broke off from AA to form another company,  does this tell you anything?)..I really don't see this as the "end" for AA, but it will be the beginning of a very, very long uphill battle to regain confidence and marketshare.  After all, you can't be known as "the Firm", and not retain some clout.  But Enron...well, that's just another in a very long line of business failures, both on the large and small scale.  And it probably won't be the last!  You just have to be mindful of the baskets your eggs are in at all times.  But I really do feel for those people that will loose any gains they may have made.  I hope there is some recourse for them.

Which brings me to another point....in most mutual funds, (and 401K's) you always have the option of opening a money market acount within the fund, and move your money into it so you don't loose it when the market becomes voliatle.  You would be earning much less...but EARNING nonetheless.  Then when the market picks back up, you can start to "re-buy" shares in the mutual fund again.  I was lucky enough to have done this when we rolled over from my old company to the new. I haven't lost a cent! (Let's call it a very happy accident!) And as the old saying goes, no one will take care of you as well as you can! And folks, I say this to you with nothing but your financial well-being at heart!

Here's a toast to a speedy financial recovery to all of us...and the companies we all work for!

Daisylee

[dedlered]

Three months later and the fire is a little hotter. AA has been indicted, clients are leaving (though not a mass exodus), and employees are fiighting back with email, voicemail and presence on the capital steps.   Lou Dobbs made a powerful commentary last night on Moneyline and there are still talks of mergers, bankruptcy, and spin-offs.  What do you think of the latest news and what is your opinion what has happened.
Should Enron or any of the officers have been the indicted ones?  Is AA the only one that should be held accountable?

Laura
Deskdemon Forum Board Staff

[chris68]

I also heard at one point that Deloitte & Touche was looking into buying out Arthur Anderson, any truth to that rumor?  If they were wise, they would stay clear of AA name and just go after as many clients as possible when they leave AA.



Chris68
Deskdemon Forum Board Staff

[dedlered]

Chris,
From what I understand, D&T were in negotiations as well as E&Y but backed out because of the liability issues.  KPMG and the Global offices, (international only) are in negotiations now but that does not include the US firms.

Laura
Deskdemon Forum Board Staff

[chris68]

That's what I thought I heard, but just wasn't sure.  Thanks for the clarification.

Chris68
Deskdemon Forum Board Staff