In which I hog Google's bandwidth, drink my morning coffee, and think about the fraud at ENRON:
ENRON: Brad DeLong 6 min 6 sec - Jun 15, 2006:
Brad DeLong's Morning Coffee. ENRON collapsed because most of the profits reported by Enron Energy Services were really losses: when you give your dealmakers the power to value the deals they make, watch out. Even with this major fraud in process, ENRON's profits were still too low to make Lay and Skilling happy--and so they commissioned Fastow to further pretty up their numbers. ENRON was not a sound company.