Enron Bankruptcy December 2, 2001

FIGURE 9.1 GOVERNANCE REFORM TIMELINE Public outrage grows, governance credibility falls SEC Regulations Stock Exchange Guidance WorldCom Restatement June 25, 2002; Bankruptcy July 21, 2002 Enron Bankruptcy December 2, 2001 Arthur Andersen Court Case Winter/Spring 2002 Sarbanes-Oxley Act Signed July 30, 2002

FIGURE 9.2 ENRON STOCK CHART, WEEKLY PRICES, 1997-2002 Enron Corp. (last price N/A) $ 90.00 $ 80.00 $ 70.00 $ 60.00 $ 50.00 $ 40.00 $ 30.00 $ 20.00 $ 10.00 $ 0.00 US Dollars Reprinted courtesy of StatPro Canada, Inc.

FIGURE 9.3 CHEWCO FINANCING, IN MILLIONS ENRON KOPPER & DODSON’s Company DODSON Companies $0.125 $11.4 $11.4Loan* JEDI $132RevolvingCredit BARCLAYS BANK PLC CHEWCO $240 Loan Sources Bank $251.4 Non-cash 132.0 Investors 0.1 Total $383.5

TABLE 9.1 ENRON’S KEY SPECIAL PURPOSE ENTITIES (SPEs)

TABLE 9.2 PAYMENTS TO FASTOW & HELPERS

TABLE 9.3 ENRON WHISTLE-BLOWERS

FIGURE 9.4 ENRON’S GOVERNANCE & CONTROL STRUCTUREWAS SHORT-CIRCUITED BOARD Ken Lay: Chair; Co-chair Baxter Committees: Audit and Compliance Compensation, Finance, Nominating Outside Law Firm FinancialReports SPEs Internal Audit … AA MANAGEMENT CEO: Lay, Skilling CFO: Fastow CAO: Causey CRO: Buy Others: Kopper, McMahon, Glisan Watkins, Kaminsky Whistle-blowers Company Policies Code of Conduct LEGEND MissingGuidance AUDITOR Arthur Andersen Missing Compliance Consultant: Arthur Andersen SuspendedGuidance

TABLE 9.4 ENRON’S ACCOMPLICE BANKS’ LAWSUIT SETTLEMENTS

TABLE 9.5 ENRON KEY EXECUTIVE INDICTMENTS

TABLE 9.6 SELECTED ENRON FINANCIAL STATEMENT DETAILS

TABLE 9.7 KEY CHANGES IN GOVERNANCE GUIDELINES AND REGULATIONS

TABLE 9.8 ORGANIZATION OF THE SARBANES-OXLEY ACT of 2002

Enron Bankruptcy December 2, 2001