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 August 2001: Crisis revealed
 Jeff Skilling quits and an insider gets suspicious

On 14 August 2001, seemingly from nowhere, Jeff Skilling resigned as chief executive, citing personal reasons. Kenneth Lay became chief executive once again.

The development was a shock to investors who suddently began to fear that all was not well in Houston.

Investors sold millions of shares, knocking some $4 off the price by the end of the week. As the price dropped below $40, Mr Lay insisted that there were "no issues".

But there was a very large issue - perhaps one that the board was not fully aware of.

In May of that year, Enron executive Clifford Baxter left the company, apparently in uncontroversial circumstances.

But there were rumours among executives that Mr Baxter - soon to become a tragic figure in the affair when he tookk his own life - had clashed with Jeff Skilling over the propriety of some of the partnership transactions.

When Mr Skilling resigned, one executive who knew of Mr Baxter's concerns decided to act, and warned Mr Lay that Enron was on the verge of "imploding".

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

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