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 Early 2001: Stock heading south
 Enron remains bullish but stock begins to slide

In February, Jeff Skilling became Enron's chief executive with Kenneth Lay remaining as chairman.

Enron's stock had begun to suffer in the wake of the dot.com deflation and energy price instability.

On 5 February 2001, Enron's auditors, Andersen, held a confidential meeting. Some of the team said that they had concerns about the special partnerships and the full implications of moving money, stock and assets backwards and forwards in incredibly complicated deals.

For the partnerships to work financially and on a basis of accountability to shareholders, they had to be sufficiently independent of Enron.

But Enron had two partnerships, LJM1 and LJM2, which were effectively solely run by Enron executives.

These entities dealt with more than 20 complicated contracts running to hundreds of millions of pounds. The executives running the partnerships stood to make millions of dollars from the arrangements.

Click on the red dots on the graph for more detail.



 ENRON'S LJM2 PARTNERSHIP
 Created by executives, offered investors  partnership opportunities

LJM2 Management:

Enron position:

Andrew Fastow
(general partner)

Chief Financial Officer

Michael Kooper
(general partner)

Managing director
Enron Global Equity Markets

Ben Glisan Jr
(general partner)

Vice President
Enron Global Equity etc
(denies involvement)
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