text_combined: enron mentions fall power giant bailout unlikely enron goes u thinks impact would limited wall street journal 11 29 01 enron woes may ripple others energy company files bankruptcy results likely messy wall street journal 11 29 01 fall power giant bailout unlikely enron goes u thinks impact would limited wall street journal 11 29 01 enron meltdown may also felt big mutual funds wall street journal 11 29 01 credit agencies switch enron p cries junk warning comes late wall street journal 11 29 01 credit agencies switch enron energy trading bears brunt enron woes wall street journal 11 29 01 fall power giant chairman deep political connections run silent wall street journal 11 29 01 dynegy chevrontexaco slide along plunge enron stock wall street journal 11 29 01 dollar declines yen euro amid growing doubts u economy wall street journal 11 29 01 dynegy move disconnect enron merger powers volatility spike investors seek cover wall street journal 11 29 01 enron asks staff drop 401 k suits severance wall street journal 11 29 01 nvidia replace enron p wall street journal 11 29 01 enron collapses suitor cancels plans merger new york times 11 29 01 bankruptcy filing might best remaining choice new york times 11 29 01 implosion wall street new york times 11 29 01 citigroup j p morgan left bruised egos exposure loans new york times 11 29 01 turbulent bond market enron woes exacerbate turmoil new york times 11 29 01 big fall evoking nasty old memories run bank new york times 11 29 01 foundation gives way chief big dream new york times 11 29 01 market deals risks faces novel one new york times 11 29 01 investors pull back enron drags key indexes new york times 11 29 01 debt rankings finally fizzle deal fizzled first new york times 11 29 01 global investing bond mutual funds suffer enron troubles deepen financial times 11 29 01 companies finance americas sec filing triggered merger crisis financial times 11 29 01 companies finance americas financial system braces chain reaction financial times 11 29 01 companies finance americas traders avoid exposure junk status fallout financial times 11 29 01 companies firms reasuring investors houston chronicle 11 29 01 bankruptcy filing enron could largest ever houston chronicle 11 29 01 ballpark place project stopped dead tracks houston chronicle 11 29 01 fall power giant bailout unlikely enron goes u thinks impact would limited greg ip jathon sapsford staff reporters wall street journal 11 29 2001 wall street journal al 0 copyright c 2001 dow jones company inc washington enron corp goes government unlikely throw lifeline peak enron major participant country financial energy markets economic financial policy makers say worried broader blow markets business activity despite frequent comparisons long term capital management hedge fund whose 1998 nose dive panicked global financial markets triggered unusual bailout brokered federal reserve far public sign attempt fed treasury energy regulators take similar action behalf enron creditors officials range economic regulatory agencies insisted recent days closely monitoring enron situation seen reason concerned possible ripple effects enron one piece big market said john mielke chief market surveillance commodity futures trading commission mr mielke said saw evidence enron problems disrupted trading futures exchanges monitored cftc deep pretty big markets enron echoed william gilmer economist federal reserve bank dallas soon say exactly total damage enron potential demise one danger blowup company complex largely unregulated portfolio derivatives could infect financial markets wide unpredictable ways ltcm another worry collapse major middleman natural gas power markets could disrupt supplies enron share characteristics ltcm including widespread activities complicated financial instruments numerous markets little detailed public explanation activities little regulatory oversight trades public disclosures suggest enron exposures substantial quarterly filing listed 18 7 billion assets equal amount liabilities related price risk management activities sept 30 filing gives description breakdown amounts little detail derivatives enron transacts normal part business derivative financial contract whose value designed track return stocks bonds currencies benchmark enron spokeswoman return call seeking comment enron woes deepened government hands tied even assessing situation part company part coalition energy companies banks lobbied successfully three years ago cftc efforts expand regulation counter energy market enron also worked behind scene head cftc direct regulation energy concern enrononline trading operation signs markets concerns enron fallout interest rates bonds utilities energy companies rose one two tenths percentage point relative treasurys yesterday day end dow jones industrial average 160 74 points decline blamed part enron news relatively small hiccups betting impact enron troubles financial system widespread thin enron favorite borrower among lenders loans among widely syndicated among banking system home abroad example 2 25 billion credit facility arranged enron may citigroup inc j p morgan chase co distributed 50 different institutions according loan pricing corp credit market research company syndication members sold chunks debt investors according banker one underwriters j p morgan chase said statement 500 million unsecured exposure enron entities including loans letters credit derivatives said also secured exposures including 400 million loans secured enron pipelines exposure expected smart represents small fraction j p morgan chase total assets 715 billion citigroup declined comment exposure enron officials familiar matter said bank exposure similar j p morgan chase beyond financial fallout concern potential impact energy markets could economy enron troubles could hamper efforts end recession company difficulties make impossible deliver natural gas electricity customers natural gas prices rose sharply yesterday minutes three major credit rating agencies downgraded enron rating dynegy inc said calling purchase move quickly reversed traders digested gas inventory numbers released afternoon showed utilities stored enough gas meet demand ahead winter heating season seen interruptions physical deliveries pricing reaction futures markets could attribute enron said scott miller director market development federal energy regulatory commission revenues transactions occurring normally far tell michael schroeder chip cummins john fialka contributed article copyright 2000 dow jones company inc rights reserved enron woes may ripple others energy company files bankruptcy results likely messy henny sender richard b schmitt staff reporters wall street journal 11 29 2001 wall street journal 3 copyright c 2001 dow jones company inc sudden deep financial troubles enron corp aggressive many tentacled energy conglomerate could widespread consequences scores companies across economy enron files protection chapter 11 federal bankruptcy code many investors financial experts expect likely one messiest complex bankruptcy cases ever lawyers say multifaceted nature enron highflying operations combined global energy business massive financial trading operation involving tens billions dollars complex contracts yesterday amid unraveling last ditch merger dynegy inc company credit downgraded junk status rating agency standard poor corp enron 800 trading partners creditors stock market signaling bankruptcy filing expected hammered enron stock halted time yesterday knocked lower financial backers shares enron shares closed 4 p new york stock exchange composite trading 61 cents 3 50 85 enron bonds also fell sharply dropping 50 cents dollar around 55 cents reflecting concerns much creditors might receive company seek bankruptcy court protection j p morgan chase citigroup invested hundreds millions dollars hopes keeping enron dynegy deal alive also saw stocks fall 4 p nyse composite trading j p morgan shares 2 30 37 50 citigroup shares 2 75 47 80 j p morgan chase said statement 500 million unsecured exposure enron entities including loans letters credit derivatives said also secured exposures including 400 million loans secured enron pipelines companies also disclosed exposures enron exelon corp energy concern chicago said power trading arm direct net exposure enron less 10 million based current book business existing market prices exelon said direct gross exposure based sales enron less 20 million exelon said partly offset 10 million owes enron still fallout potential bankruptcy filing would widespread federal regulators appear little concerned could inflict significant damage u economy see related article page al 0 scale enron collapse huge experts say nothing compare said edward tillinghast bankruptcy specialist coudert brothers new york business large many different kinds operating entities enron umbrella way added filing would represent challenges two biggest bankruptcies recent years past spring chapter 11 filing pg e corp pacific gas electric utility unit demise drexel burnham lambert wall street securities firm failed decade ago filing enron 13 billion debt would rank among largest bankruptcy filings ever bankruptcy lawyers creditors rights specialists already swamped wealth work boom chapter 11 filings last 18 months said contacted worried banks lenders enron seeking retain event chapter 11 filing enron spokeswoman karen denne said company exploring options comment whether retained bankruptcy counsel lawyers said company already discussions retaining counsel among likely advisers new york law firm weil gotshal idea protect parties market risk value contracts fluctuate day day avoid larger financial meltdown means enron counterparties free close transactions rather file claims bankruptcy proceeding reflecting total notional amount trades words securities firm counterparty enron many financial contracts would tally much owes enron contracts much enron owes offsetting amounts process ripe conflicts disputes easily could arise value contracts incredibly complex piece financial engineering andrew rahl bankruptcy lawyer anderson kill olick new york said process much collateral counterparties could seize clear either enron considered aggressive negotiating agreements swaps party trades obligation pay floating interest rate fixed interest rate given securities speed company finances deteriorated reduces odds trading partners able get paid anytime soon without security counterparty claims would go probably massive general pool claims unsecured creditors besides banks bondholders dozens companies municipalities utilities signed multiyear power contracts enron may left lurch years likes retailer j c penney co shopping mall company simon property group indianapolis signed enron undercut local utilities newly deregulated markets bankruptcy also likely trigger collateral lawsuits aggrieved parties look alternative deep pockets one possible target analysts said could advisers helped enron establish balance sheet vehicles debt related troubled investment partnerships triggered massive losses recent weeks moreover enron directors could vulnerable yesterday enron named raymond troubh new york financial consultant board chairman newly formed special litigation committee evaluate claims shareholder derivative lawsuits time filing would give enron advantages notably greater ease securing financing companies file protection new cash infusion banks overriding claim company assets expense previous lenders addition potential buyers enron businesses may likely emerge company operating court protection depth problems known certain comfort level buyers buying business chapter 11 case exist company struggling outside bankruptcy said keith shapiro bankruptcy lawyer greenberg traurig chicago copyright 2000 dow jones company inc rights reserved fall power giant bailout unlikely enron goes u thinks impact would limited greg ip jathon sapsford staff reporters wall street journal 11 29 2001 wall street journal al 0 copyright c 2001 dow jones company inc washington enron corp goes government unlikely throw lifeline peak enron major participant country financial energy markets economic financial policy makers say worried broader blow markets business activity despite frequent comparisons long term capital management hedge fund whose 1998 nose dive panicked global financial markets triggered unusual bailout brokered federal reserve far public sign attempt fed treasury energy regulators take similar action behalf enron creditors officials range economic regulatory agencies insisted recent days closely monitoring enron situation seen reason concerned possible ripple effects enron one piece big market said john mielke chief market surveillance commodity futures trading commission mr mielke said saw evidence enron problems disrupted trading futures exchanges monitored cftc deep pretty big markets enron echoed william gilmer economist federal reserve bank dallas soon say exactly total damage enron potential demise one danger blowup company complex largely unregulated portfolio derivatives could infect financial markets wide unpredictable ways ltcm another worry collapse major middleman natural gas power markets could disrupt supplies enron share characteristics ltcm including widespread activities complicated financial instruments numerous markets little detailed public explanation activities little regulatory oversight trades public disclosures suggest enron exposures substantial quarterly filing listed 18 7 billion assets equal amount liabilities related price risk management activities sept 30 filing gives description breakdown amounts little detail derivatives enron transacts normal part business derivative financial contract whose value designed track return stocks bonds currencies benchmark enron spokeswoman return call seeking comment enron woes deepened government hands tied even assessing situation part company part coalition energy companies banks lobbied successfully three years ago cftc efforts expand regulation counter energy market enron also worked behind scene head cftc direct regulation energy concern enrononline trading operation signs markets concerns enron fallout interest rates bonds utilities energy companies rose one two tenths percentage point relative treasurys yesterday day end dow jones industrial average 160 74 points decline blamed part enron news relatively small hiccups betting impact enron troubles financial system widespread thin enron favorite borrower among lenders loans among widely syndicated among banking system home abroad example 2 25 billion credit facility arranged enron may citigroup inc j p morgan chase co distributed 50 different institutions according loan pricing corp credit market research company syndication members sold chunks debt investors according banker one underwriters j p morgan chase said statement 500 million unsecured exposure enron entities including loans letters credit derivatives said also secured exposures including 400 million loans secured enron pipelines exposure expected smart represents small fraction j p morgan chase total assets 715 billion citigroup declined comment exposure enron officials familiar matter said bank exposure similar j p morgan chase beyond financial fallout concern potential impact energy markets could economy enron troubles could hamper efforts end recession company difficulties make impossible deliver natural gas electricity customers natural gas prices rose sharply yesterday minutes three major credit rating agencies downgraded enron rating dynegy inc said calling purchase move quickly reversed traders digested gas inventory numbers released afternoon showed utilities stored enough gas meet demand ahead winter heating season seen interruptions physical deliveries pricing reaction futures markets could attribute enron said scott miller director market development federal energy regulatory commission revenues transactions occurring normally far tell michael schroeder chip cummins john fialka contributed article copyright 2000 dow jones company inc rights reserved enron meltdown may also felt big mutual funds 11 29 2001 wall street journal cl 3 copyright c 2001 dow jones company inc new york largest mutual funds country jumped enron corp shares soaring may feeling pain stock meltdown energy trading company stock held funds managed fidelity investments stilwell financial inc janus capital corp alliance capital management putnam investments according funds recent securities exchange commission filings vanguard group held stock various portfolios including giant passively managed index funds according filings one biggest supporters stock alliance premier growth fund 11 billion portfolio 4 assets enron shares sept 30 according fund tracker morningstar inc based sept 30 filing fund stake dropped value 445 million yesterday course alliance premier funds may sold bought enron shares since made latest government filings alliance spokesman declined comment funds reporting big stakes enron recently included janus mercury fund 3 6 assets invested enron stock april 30 janus spokeswoman said funds sold enron shares mid november copyright 2000 dow jones company inc rights reserved credit markets credit agencies switch enron p cries junk warning comes late gregory zuckerman jathon sapsford staff reporters wall street journal 11 29 2001 wall street journal cl copyright c 2001 dow jones company inc 10 57 est yesterday announcement came effectively scuttled dynegy inc proposed takeover enron corp issued two companies bankers behind scenes player pivotal deal start news came standard poor lowered enron credit rating junk status concern energy trading company financial condition move followed similar downgrades moody investors service inc fitch inc several hours later prompted dynegy announce walking away multibillion dollar deal downgrades highlight key role credit rating agencies sometimes bit players one biggest wall street dramas years became deal breakers ratings agencies emerged unlikely deal makers weeks ago leaving enron little choice seek merger partner face downgrade would made difficult keep running business throughout enron saga rating agencies found target repeated intense lobbying enron dynegy bankers j p morgan chase co citigroup inc tried ultimately failed come assurances merger would bolster enron thus protect bondholders lenders suffering losses dramatic downgrades sure increase scrutiny role rating agencies enron situation critics say waiting enron bonds already plummeted value ratings agencies failed job anticipating company financial problems giving investors early warning seems clear rating agencies like securities analysts seem easily accepted enron murky financial reporting gave impression company balance sheet stronger recently late october moody corp moody mcgraw hill cos p solid investment grade rating enron debt since credit rating agencies often access company information securities analysts often rating agencies could take heat anticipating financial difficulties bond investors instance say p prematurely upbeat enron outlook earlier month long ago demanded information company rating agencies privy along information near tell nonpublic regarding balance sheet liabilities judgment looks even faulty says carol levenson gim credit chicago based analyst others wonder whether ratings executives lowered rating junk days ago enron problems became obvious move would crippled company ability find suitor holding ratings move hurt stock bond investors left holding securities think consequences rating action anything whether one takes rating action one feels warranted ms levenson says think doubt enron junk credit ratings agencies counter enron financial condition weakened became precarious past days given consequences downgrade needed prudent indeed every party deal yesterday kept working provide financial infusions enron keep deal alive enron executives particularly desperate hold ratings downgrade debt lowered junk status investment grade whopping 3 9 billion debt immediately became due jeopardizing enron ability stay afloat worries debt downgrade weeks ago pushed enron merger dynegy despite reservations enron executives whether deal right enron pledged best assets secure 500 million investment j p morgan chase citigroup citibank agreed strict terms demanded banks get emergency 1 billion credit line various banks recent days two companies worked restructure merger raise still liquidity enron 4 p tuesday credit agencies agreed hold downgrade convinced two sides making progress restructuring deal drumming new money enron conference call ron barone managing director p told enron executives willing wait decision aware serious consequences downgrade patient diligent progress made told according someone familiar conversation late 10 30 p tuesday new deal still seemed sight 2 yesterday talks broke instead briefed terms new merger agreement credit agency executives became doubtful resolution would ever reached late morning phone call jeff mcmahon enron chief financial officer mr barone broke news company credit would downgraded lost confidence deal would consummated way would keep rating intact mr barone says interview enron credibility viability continued diminish aware concerns p downgraded enron corporate credit rating two full grades single b minus near lower end junk bond world triple b minus lowest investment grade level moody lowered debt b 2 baa 3 late afternoon conference call investors p executives said rating could still lowered heels official announcement merger dynegy responding criticism credit agencies downgraded enron debt sooner mr barone p notes rating agency privy everything still adds yesterday confident investment grade company merger would give security enable enron function investment grade level flip side course enron forced bankruptcy rating agencies may well catch heat impact drastic effectively killing deal treasurys treasurys ended slightly higher 4 p benchmark 10 year treasury note 1 32 point 31 cents per 1 000 face value 100 15 32 yield 4 938 30 year treasury bond price also 1 32 point 100 9 32 yield 5 355 dow jones industrial average ended loss 160 74 points investors often shift funds relative safety government securities market times stocks weak treasury sale 21 billion two year notes drew less demand expected bid cover ratio gauge demand comparing dollar value bids received awarded 1 51 well 2 53 average past 12 auctions also somewhat bearish bond market release fed beige book report assessment economic conditions around country advance policy meetings policy makers meet dec 11 although report cited weakness economy encourage people bond market expect rate cuts fed analysts said everybody camp fed going ease said kevin flanagan market strategist morgan stanley two year notes results yesterday treasury auction two year notes bids awarded single price market clearing yield rates determined difference price face value applications 31 761 220 000 accepted bids 21 000 020 000 bids market clearing yld accepted 14 96 accepted noncompetitively 774 120 000 accepted frgn noncomp 0 auction price rate 99 985 3 008 interest rate 3 cusip number 9128277 gl notes dated nov 30 2001 mature nov 30 2003 see related article commodities energy trading bears brunt enron woes wsj nov 29 2001 copyright 2000 dow jones company inc rights reserved commodities credit agencies switch enron energy trading bears brunt enron woes peter mckay staff reporter wall street journal 11 29 2001 wall street journal cl copyright c 2001 dow jones company inc less month ago enron corp electronic trading system largest kind world accounting quarter natural gas electricity delivered u yesterday system shut victim enron failed deal dynegy inc rise sudden fall enron rippled throughout financial markets yesterday nowhere immediately evident energy trading arena utterly transformed enron recent years since late 1990 enrononline established dominant electronic energy marketplace major competitor traditional futures exchanges grew handle average 5 400 trades day value 2 8 billion flight away enron began weeks ago initial news company woes began spread enron guaranteed trades platform fears grew company might able complete many transactions exodus trading activity enrononline accelerated throughout day yesterday culminating system shutdown around midday quotes system internet trading screens simply went blank 3 30 p est trading resumed natural gas though spokesman eric thode declined say whether enron markets would open today part evaluation ongoing said floor new york mercantile exchange traditional floor based futures market natural gas trading volume almost doubled yesterday 116 000 contracts enron woes main driver behind surge market also reacted important storage data american gas association natural gas prices jumped 25 cents yesterday morning initial reaction enron news near 3 per million british thermal units slipped back aga announced gas storage grown 16 billion cubic feet time high nearby december contract fell 29 cents 2 315 per million btus anyone jumped gas market enron news praying right prices recover guy gleichmann senior energy trader barkely financial short term factor market said enron collapse helped gas prices mainly seen threat overall gas supply traders assume enrononline problems affect actual energy deliveries whoever takes enron assets expected honor commitments meantime anticipating potential fallout enron problems energy firms also reducing financial risk energy markets unwinding complex derivatives bets either hedging taking delivery physical commodity future firms likely favor straightforward cash transactions energy result enron meltdown anything enron situation really simplified market mr gleichmann said yesterday enron primary electronic rival traders waited five minutes log said jeff sprecher online market chief executive said seemed traders jockeying position first assessing newfound risk actually making trades within first 15 minutes standard poor initial downgrade enron mr sprecher said number bids offers dropped almost third 2 200 end day though expect probably record day us said mr sprecher estimated system overall volume 45 month expects much gain permanent ice although cautioned loss enrononline marketplace would downside since presence created opportunities trade spreads two platforms nymex president j robert collins warned still early declare enrononline dead said difficulties bode well exchange internet based system dubbed enymex development credit issues involving enron companies might hesitant trade said better shot enymex three four months ago ronald j barone managing director energy research ubs warburg said enrononline value prospective acquirers drop quickly coming days business continues decline dynegy really liked enrononline look much business platform losing said mr barone downgraded enron stock yesterday hold also question many skeletons closet commodity trading yesterday grains futures prices corn wheat soybeans fell chicago board trade described technical based selloff accelerated december delivery corn futures sank 1 9850 bushel late session wiped old contract low contract ended settling five cents 1 9875 bushel crude oil crude oil futures slipped 26 cents 19 22 barrel weekly inventory data showed larger expected five million barrel build distillates supplies include heating oil high refinery runs imports behind build analysts said contract might fallen even except modest drop reported crude oil stocks dyanna decola contributed article see related article credit markets p cries junk warning comes late wsj nov 29 2001 copyright 2000 dow jones company inc rights reserved fall power giant chairman deep political connections run silent bob davis staff reporter wall street journal 11 29 2001 wall street journal al 0 copyright c 2001 dow jones company inc years enron corp chairman kenneth lay george w bush best friend board rooms america top corporations since 1993 mr lay enron donated nearly 2 million mr bush political career making mr bush biggest backers mr bush texas governor mr lay houston resident helped win passage state education reform plan brought mr bush national acclaim fight mr lay got know aides became power players bush white house mr lay confident enough friendship mr bush even needled needing arthroscopic surgery repair jogging injury want know least one jogger got past 50 without surgery mr lay scribbled note governor 1997 still enron faces greatest crisis mr lay influence personal relationships administration amounted little appears effort white house congress bail enron difficulties widely seen self inflicted white house comment mr lay predicament spokeswoman said indeed short actual bailout help enron meet obligations aid package approved congress organized government officials private sources similar rescue long term capital management hedge fund little washington stage help company likely bailout since enron burned many bridges capitol hill history strong arm lobbying tactics congressional aides say may reassure cynical public says robert mosbacher commerce secretary first bush administration longtime friend current president well mr lay see anybody let hook said mr mosbacher says introduced mr lay bush family around 1987 persuaded mr lay help raise money george h w bush successful presidential bid 1988 mr lay contributed 461 000 younger mr bush two successful gubernatorial campaigns also made enron fleet corporate jets available mr bush help lobbying officials states considering enron projects influence gov bush based money mr lay one state leading business executives deeply involved texas politics mr bush predecessor democrat ann richards mr lay headed governor business council state advisory board mr bush asked stay job help develop educational reform plan sell texas legislature capacity mr lay became close several bush aides including political guru karl rove communications adviser karen hughes taken positions white house also got know another leading texas businessman dick cheney ceo dallas oil concern halliburton co would become mr bush pick vice president backdrop mr lay widely considered top candidate treasury secretary younger bush administration ultimately though disqualified bush insiders say closely identified mr bush mr cheney others worked texas energy business administration wanted show pocket big oil companies early mr lay unrivaled access administration president advisers debated new energy policy spring mr lay energy executive invited one one session mr cheney led effort mr lay also worked mr rove others successfully push appointments federal energy regulatory commission oversees much enron business enron problems multiplied fortunes plummeted however white house silent several hour long interview spring mr lay mused bush connections could boomerang someday could hurt standpoint point lean direction make sure face criticism said copyright 2000 dow jones company inc rights reserved fall power giant chairman deep political connections run silent bob davis staff reporter wall street journal 11 29 2001 wall street journal al 0 copyright c 2001 dow jones company inc years enron corp chairman kenneth lay george w bush best friend board rooms america top corporations since 1993 mr lay enron donated nearly 2 million mr bush political career making mr bush biggest backers mr bush texas governor mr lay houston resident helped win passage state education reform plan brought mr bush national acclaim fight mr lay got know aides became power players bush white house mr lay confident enough friendship mr bush even needled needing arthroscopic surgery repair jogging injury want know least one jogger got past 50 without surgery mr lay scribbled note governor 1997 still enron faces greatest crisis mr lay influence personal relationships administration amounted little appears effort white house congress bail enron difficulties widely seen self inflicted white house comment mr lay predicament spokeswoman said indeed short actual bailout help enron meet obligations aid package approved congress organized government officials private sources similar rescue long term capital management hedge fund little washington stage help company likely bailout since enron burned many bridges capitol hill history strong arm lobbying tactics congressional aides say may reassure cynical public says robert mosbacher commerce secretary first bush administration longtime friend current president well mr lay see anybody let hook said mr mosbacher says introduced mr lay bush family around 1987 persuaded mr lay help raise money george h w bush successful presidential bid 1988 mr lay contributed 461 000 younger mr bush two successful gubernatorial campaigns also made enron fleet corporate jets available mr bush help lobbying officials states considering enron projects influence gov bush based money mr lay one state leading business executives deeply involved texas politics mr bush predecessor democrat ann richards mr lay headed governor business council state advisory board mr bush asked stay job help develop educational reform plan sell texas legislature capacity mr lay became close several bush aides including political guru karl rove communications adviser karen hughes taken positions white house also got know another leading texas businessman dick cheney ceo dallas oil concern halliburton co would become mr bush pick vice president backdrop mr lay widely considered top candidate treasury secretary younger bush administration ultimately though disqualified bush insiders say closely identified mr bush mr cheney others worked texas energy business administration wanted show pocket big oil companies early mr lay unrivaled access administration president advisers debated new energy policy spring mr lay energy executive invited one one session mr cheney led effort mr lay also worked mr rove others successfully push appointments federal energy regulatory commission oversees much enron business enron problems multiplied fortunes plummeted however white house silent several hour long interview spring mr lay mused bush connections could boomerang someday could hurt standpoint point lean direction make sure face criticism said copyright 2000 dow jones company inc rights reserved abreast market dynegy chevrontexaco slide along plunge enron stock robert brien dow jones newswires 11 29 2001 wall street journal c 2 copyright c 2001 dow jones company inc new york collapse enron dominated stock trading yesterday host power generators energy merchants exposed firm tumbled shares dynegy suitor enron pulled deal debt rating agencies lowered ratings enron bonds fell 4 92 12 35 97 chevrontexaco owns 26 dynegy slid 1 07 1 2 84 55 shares enron ground 85 loss 3 50 brought closing price enron share 61 cents stock recently august 2000 commanded 90 share host energy merchants el paso lost 3 59 7 4 44 91 williams shed 1 80 6 2 27 05 american electric power fell 2 03 4 8 40 44 got caught backlash energy market dow jones utility average finished session 8 48 points drop 2 94 279 95 brought 52 week low shares two giant financial services providers also got caught exposure enron paid price shares citigroup fell 2 75 5 4 47 80 j p morgan chase slid 2 30 5 8 37 50 two components decline dow jones industrial average finished session 160 74 points lower loss 1 63 9711 86 nasdaq composite slid 2 48 48 points 1887 97 dow industrial average finish 9711 86 represented lowest close average posted two weeks since ending 9554 37 traders insisted speed apparent ease market averages managed lard gains past several weeks stretched valuations left equities vulnerable events like enron sell sturdier market might handily absorbed one important overriding factors performance market arthur hogan chief market analyst jefferies said market moved straight seven weeks row moves straight line like take much way catalyst tip whether excuse making profit taking market absorb fundamental challenges session including especially pessimistic assessment economic conditions federal reserve central bank released beige book report economic conditions showed overall economy tilted toward slowing toward recovery helped puncture shares retailers got waylaid tuesday trading bearish consumer sentiment reading shares gap stung reduction investment rating prudential securities lost 79 cents 5 5 13 61 shares another apparel retailer american eagle outfitters lost 1 3 5 9 24 40 talbots dropped 1 25 3 6 33 discounter kohl fell 84 cents 1 2 67 86 meanwhile classic cyclical stocks good runs past several weeks investors bet eventual economic recovery gave ground shares boeing fell 1 33 3 7 34 17 j p morgan reduced earnings forecasts 2002 2003 whirlpool lost 1 12 1 7 64 98 auto parts maker eaton declined 1 1 4 69 60 general electric also subject downbeat comments j p morgan fell 1 72 39 35 continental airlines lost 2 40 10 21 70 air carrier completed public offering 6 74 million shares stock priced 22 50 discount tuesday closing price 24 10 coca cola declined 1 06 2 2 46 75 j p morgan said expects slower volume growth ahead beverage maker bottlers shares coca cola enterprises coke biggest bottler eased 40 cents 2 3 17 magna international rose 1 54 2 6 61 51 salomon smith barney started coverage canadian auto components maker buy rating medtronic gained 1 74 4 45 78 minneapolis medical device maker reported fiscal second quarter results matched wall street projections said expected live third quarter forecasts foot locker eased 19 cents 1 2 15 70 mixed views rival brokers rbc capital markets started coverage stock strong buy rating jefferies reduced coverage stock accumulate buy copyright 2000 dow jones company inc rights reserved foreign exchange dollar declines yen euro amid growing doubts u economy grainne mccarthy dow jones newswires 11 29 2001 wall street journal cl 4 copyright c 2001 dow jones company inc new york growing doubts u economy ability rebound quickly recession weighed heavily dollar pushing currency almost full yen helping euro regain lost ground weakness u stocks due partly news dynegy inc decided walk away deal buy enron corp also put pressure dollar enron debt woes added general skittishness ability u business bounce back quickly know companies trouble said lara rhame economist brown brothers harriman new york said enron developments direct impact foreign exchange markets reports limit kind superdollar saw back 1999 dollar selloff kicked asian trading dealers used standard poor downgrade japan sovereign rating excuse buy yen downgrade double double plus better market expectations two notch downgrade rendering good news sorts selling continued new york trading traders continued price possibility may far optimistic dollar two pronged catalyst change heart weak november consumer confidence index released tuesday subsequent gloomy comments federal reserve governor laurence meyer pointing downside risks economy release federal reserve beige book report yesterday served flame pessimism fed said slowing outweighed signs recovery u economy autumn noting economic activity generally remained soft october first half november people wanted greater signs recovery got fed said alan ruskin research director 4 cast financial consultancy new york beige book summary economic activity prepared use central bank next federal open market committee meeting dec 11 widely viewed indicator future monetary policy decisions report helped solidify expectations rate cut least quarter percentage point late yesterday new york euro 88 84 u cents high session 88 34 cents late tuesday new york dollar 123 11 yen around intraday low almost full yen 123 96 yen late tuesday new york dollar also 1 6460 swiss francs 1 6484 francs london 1 6560 francs tuesday sterling 1 4261 1 4185 earlier london 1 4153 late tuesday elsewhere canadian dollar climbed highest levels almost month confounding view bad news u bad news canada canadian currency tended suffer association u given 85 canada exports head south border however 0 50 percentage point rate cut bank canada tuesday quickly followed gloomy consumer confidence report u undercut faith dollar appeared give canadian unit opportunity seeking late new york day u dollar c 1 5842 c 1 5939 late tuesday copyright 2000 dow jones company inc rights reserved options report dynegy move disconnect enron merger powers volatility spike investors seek cover kopin tan dow jones newswires 11 29 2001 wall street journal cl 4 copyright c 2001 dow jones fact buying dip helped propel stock prices stocks substantially september lows investors still browsing seeking added insurance many buying defensive puts lock minimum selling price stock sprint january 25 puts traded 13 000 contracts amex investor bought stock along puts specifically investor bought 5 000 contracts puts bought put spread buying 8 000 contracts january 25 puts expire 2002 selling number january 25 puts expire 2003 shares sprint pcs unit fell 1 14 25 90 amex january 25 puts 1 15 volume 13 005 contracts compared open interest 2 799 january 25 puts expire 2003 4 40 volume 8 005 contracts compared open interest 8 826 copyright 2000 dow jones company inc rights reserved enron asks staff drop 401 k suits severance 11 29 2001 wall street journal cl 3 copyright c 2001 dow jones company inc houston enron corp subject four lawsuits filed losses employees 401 k retirement plan asking laid workers waive legal claims exchange severance payments attorneys employees sought block requirement plaintiffs seeking immediate preliminary injunction prohibiting enron soliciting releases would affect participants rights vis vis plan according amended complaint filed seattle firm campbell harrison wright complaint filed federal district court houston asks court appoint neutral fiduciary manage plan suit claims enron laying much 60 staff departments enron attorney statement said laid employees required sign waiver get severance pay get additional severance exchange signing said enron modified waiver response current economic circumstances company added enron continues evaluate options regarding severance pay plan copyright 2000 dow jones company inc rights reserved nvidia replace enron p 11 29 2001 wall street journal cl 3 copyright c 2001 dow jones company inc new york standard poor said nvidia corp santa clara calif graphic chip maker replace enron corp p 500 stock index today regular trading p said enron houston energy concern whose merger dynegy inc unraveled yesterday removed lack representation copyright 2000 dow jones section enron collapse overview enron collapses suitor cancels plans merger richard oppel jr andrew ross sorkin 11 29 2001 new york times page 1 column 1 c 2001 new york times company enron champion energy deregulation grew one nation 10 largest companies collapsed yesterday rival backed deal buy many big trading partners stopped business enron based houston widely expected seek bankruptcy protection 62 billion assets sept 30 would biggest american company ever go bankrupt dwarfing filing texaco 1987 late day though enron chief financial officer jeff mcmahon said company still talking banks restructuring considering options talks would rescuer dynegy also houston salvaging deal ended acrimony dynegy agreed nov 9 buy enron second thoughts enron disclosed financial problems investors pummeled stock accused enron misrepresenting health business enron meanwhile weighing whether sue dynegy breaching terms deal person close enron said enron swift collapse left prospects 21 000 employees doubt wiped left holdings stock investors including big mutual funds shares sold 90 august 2000 crashed close yesterday 61 cents roiled treasury market tarnished standing big new york banks advised deal poured cash company left tatters reputation enron chief executive kenneth l lay confidant campaign backer president george w bush page cl treasury department federal reserve federal energy regulatory commission said monitored enron impact financial energy markets yesterday officials would comment said saw dangerous ripple effect markets functioning normally said peter bakstansky spokesman federal reserve bank new york pipeline company 1980 enron grew world largest energy trader using internet buy sell natural gas electric power supplies utilities industrial power users helping hedge fluctuations power prices enron undone shaky accounting much borrowed money unwillingness provide information investors grew doubt financial reports five weeks ago company disclosed fuel growth shifted billions dollars debt balance sheet array complex partnerships securities exchange commission began investigation enron restated five years earnings wiping nearly 600 million profit enron teetering close insolvency dynegy smaller cross town rival agreed acquire 9 billion plus assumption 13 billion debt additional financing chevrontexaco major dynegy shareholder enron subsequently disclosed even debts financial plight continued worsen energy trading companies reduced dealings firm doubting creditworthiness forced enron pay higher prices natural gas products required post large cash deposits back trades four days enron dynegy worked salvage deal yesterday morning dynegy pulled knew say morning said said chuck watson dynegy chairman interview mr watson said enron energy trading business deteriorated also cited surprises quarterly report e c enron filed nov 19 including disclosures credit downgrade meant enron pay refinance 690 million obligation enron less cash hand dynegy expected confidence credibility business deteriorated said mr watson said called mr lay yesterday meeting dynegy board call deal dynegy shares fell 4 08 10 percent close 36 81 big energy traders like el paso corporation reliant energy mirant aquila also fell enron gradual decline last month gave many energy companies time reduce exposure enron many operate rival trading operations would benefit collapse yesterday morning news leaked dynegy plans cancel deal prices soar dec 15 2000 four months chief executive azurix resigns enron takes company private aug 14 2001 six months becoming chief executive jeffrey k skilling resigns succeeded kenneth l lay oct 8 four years buying portland general electric enron agrees sell northwest natural gas oct 16 enron reports third quarter loss 618 million oct 24 two days enron discloses securities exchange commission looking complicated transactions involving enron partnerships set andrew fastow company chief financial officer mr fastow forced oct 31 e c upgrades inquiry formal investigation nov 8 enron discloses overstated profits previous five years 586 million nov 9 dynegy agrees buy enron 9 billion yesterday merger collapses enron stock falls 3 50 61 cents source bloomberg financial markets pg c 6 copyright 2000 dow jones section c enron collapse last resort bankruptcy filing might best remaining choice jonathan glater 11 29 2001 new york times page 6 column 1 c 2001 new york times company enron facing collapse deal dynegy might rescued disaster tidal wave debts suddenly coming due may little choice enter bankruptcy lawyers analysts said yesterday filing protection chapter 11 federal bankruptcy code would give company much needed breathing room deal creditors claims well afford eventual buyer advantage court approval bankruptcy would also complicated fact enron valuable assets including transwestern pipeline linking texas natural gas fields california energy markets already pledged lenders value assets available satisfy unsecured creditors unclear still enron creditors necessarily lose everything said robert j rosenberg lawyer latham awards would paid creditors satisfied like enron shareholders might end nothing said robert albergotti partner haynes boone dallas law firm enron files bankruptcy likely prevent litigation arthur andersen company outside auditor said jeffrey n gordon columbia university law school indeed bankruptcy proceedings could give company investors opportunity figure exactly profits came overstated look potential fraud special committee enron board already retained deloitte touche another big accounting firm help going figure professor gordon said chart big losers sept 30 enron top 10 shareholders big money managers alliance capital shares held millions 43 0 percentage outstanding shares 5 78 janus capital shares held millions 41 4 percentage outstanding shares 5 56 putnam investment shares held millions 23 1 percentage outstanding shares 3 11 barclays bank shares held millions 23 0 percentage outstanding shares 3 10 fidelity investments shares held millions 20 8 percentage outstanding shares 2 80 citigroup shares held millions 20 8 percentage outstanding shares 2 79 state street shares held millions 16 1 percentage outstanding shares 2 17 aim management shares held millions 14 0 percentage outstanding shares 1 88 taunus shares held millions 12 5 percentage outstanding shares 1 68 vanguard shares held millions 11 4 percentage outstanding shares 1 54 source bloomberg financial markets copyright 2000 dow jones section implosion wall street 11 29 2001 new york times page 34 column 1 c 2001 new york times company enron energy trading company may verge extinction collapse yesterday proposed acquisition dynegy smaller competitor downgrading debt junk status name attained immortality wall street enron shorthand perfect financial storm take high flying company terribly impressed sense unique mission ingenuity correspondingly contemptuous obligations fully comply spirit accounting rules add fawning investors wall street analysts journalists accountants unwilling allow company lack transparency business get way dizzying ride realize destination top steep cliff enron plenty unfathomable implosions wall street perhaps none sudden magnitude jittery financial markets contend possibility enron bankruptcy could undermine financial health banks energy companies enron ranked seventh list fortune 500 companies last year remained one hyped stories wall street well year pioneer creating private marketplaces newly deregulated commodities enron touted revolutionary force bridging dot com world stodgy energy markets enron may become one largest bankruptcy cases history stock closed yesterday 61 cents investors rushed exits reaction fatal news without bailout dynegy enron unlikely able meet crushing debt obligations company autopsy complicated affair entailing numerous lawsuits already clear come shock millions trusting individual investors across america financials fortune 500 company essentially mystery enron death watch began last month grudgingly disclosed 1 2 billion market value vanished result related party transactions private partnerships enriched company insiders enron admitted overstated profits last five years 600 million dynegy cited enron lack forthrightness reason walk away merger agreement long ago competitors democrats washington worrying whether close ties enron chairman kenneth lay george w bush would give company much influence enron aggressively lobbied success recent years limit regulation disclosure trading operations enron best argument need stronger supervision public companies financial data securities exchange commission make sure energy trader saga puts end talk lessening disclosure requirements faced public companies moreover arthur andersen failure uncover flawed accounting enron forcefully question company shadier transactions raises serious concerns auditors commitment sufficiently diligent reviewing actions major companies certain irony enron champion deregulation becomes poster child need strong regulation wall street copyright 2000 dow jones section c enron collapse lenders citigroup j p morgan left bruised egos exposure loans riva atlas 11 29 2001 new york times page 6 column 2 c 2001 new york times company dynegy decision walk away enron leaves citigroup j p morgan chase licking wounds effort burnish reputations deal makers lead advisers lead bankers enron banks chance build influence merger business unlike wall street firms citigroup j p morgan large balance sheets boasted ability provide loans advice j p morgan particular saying providing financing advantage terms building investment banking franchise said richard strauss goldman sachs analyst following brokerage firms banks lost bragging rights pulling difficult deal well millions fees also left holding hundreds millions loans enron trying stave bankruptcy enron owes two banks anywhere 800 million 900 million although may hedged derivatives contracts analysts estimated bankruptcy course creditors come well ahead shareholders virtually wiped janus capital biggest shareholder year alliance capital surpassed sept 30 according latest regulatory filing available enron stock plunged 61 cents yesterday worries money enron owes banks punished stocks yesterday citigroup shares closed 47 80 2 75 j p morgan fell 2 30 37 50 even enron files bankruptcy neither j p morgan citigroup thought enough exposure serious risk executives banks declined comment estimates exposure banks promised make equity investments companies 250 million investments canceled along dynegy deal half money owed j p morgan citigroup consists 1 billion loan banks made earlier month secured one enron pipelines citigroup lent 600 million j p morgan provided rest according executive close enron negotiations remainder owed banks various loans trading positions investments secured enron assets given assets backing much banks loans analysts said stock market overreacted net exposure could small said andrew collins covers bank stocks u bancorp piper jaffray recommending citigroup j p morgan jeffrey mcmahon enron chief financial officer said company still working j p morgan chase citigroup restructure enron debts several banks may large amounts enron debt bank america 200 million 300 million according estimates lori appelbaum follows bank stocks goldman sachs ruchi madan stock analyst salomon smith barney banks identified analysts owed money bank new york bank one fleetboston financial suntrust wachovia corporation spokesman suntrust return calls executives banks declined comment appears bad timing alliance capital management subsidiary axa increased stake enron late summer janus unit stilwell financial biggest shareholder pruning stake alliance position grew 71 percent report filed september 5 8 percent enron outstanding jane ingalls spokeswoman janus said last night janus since sold shares say price spokesman alliance would comment stake enron copyright 2000 dow jones section c enron collapse market turbulent bond market enron woes exacerbate turmoil gretchen morgenson 11 29 2001 new york times page 1 column 2 c 2001 new york times company swift downfall enron contributed extreme turbulence united states treasury market recent weeks causing violent swings interest rates seen since russia defaulted debt long term capital management hedge fund nearly collapsed late 1998 even though exact makeup enron large trading portfolio remains mystery traders said energy company bet interest rates would continue decline continuing weakness economy two weeks ago economy began show signs revival investors decided days federal reserve rate cuts rates began rise prices treasury securities fell move treasuries crushed traders still expected weak economy push interest rates lower scrambling cut losses traders sold even depressing prices pushing rates sense among many market participants enron woes made bad market excruciating think street general lost half year last week two said stan jonas managing director fimat usa broker dealer everyone long bond market thinking economy going bad everything shifted enron drove extremes extreme two weeks beginning nov 12 two year treasury notes plummeted price pushing yields 3 18 percent 2 41 percent period yields treasuries five year maturities went 4 4 percent 3 62 percent trade appears gone awry enron market participants say involved sale hundreds thousands eurodollar futures matured two three years contracts frequently used bet direction interest rates enron could also used eurodollar contracts hedge fluctuations oil prices weak economy oil prices usually fall interest rates bet lower rates would produce gains help offset decline oil prices data showed signs life economy traders surmised enron began sell eurodollars started avalanche selling among traders huge eurodollar positions liquidated said gemma wright director market strategy barclays capital know certain amount loss high one reason traders suspect enron may forced position company neither cash flow bank credit meet calls additional cash traders firms typically companies cash reserves meet calls access temporary lines credit cover shortfalls enron appears neither yesterday company said suspending payments except necessary maintain core operations addition recent interest rate spike enron contend falling oil prices price crude oil dropped 28 percent since end october caught vise enron almost certainly selling securities raise cash treasury securities eurodollar contracts markets large among easiest sell cases enron probably selling falling market adding turmoil bond market traders said less participation wall street firms unwilling take big new trading positions near end fiscal year several firms end years nov 30 traders say enron problems started comments tuesday laurence h meyer governor federal reserve mr meyer suggested additional rate cuts might coming remark helped stabilize prices treasury securities view coincidences mr jonas said laurence meyer big hawk interest rates basically talked 180 big gun bigger gun would greenspan graph market catalyst swift demise enron company investment strategies bond market may contributed sharp rise yields treasury notes last weeks graph tracks daily yields 2 year treasury notes november source bloomberg financial markets pg c 7 copyright 2000 dow jones section enron collapse market place big fall evoking nasty old memories run bank floyd norris 11 29 2001 new york times page 1 column 1 c 2001 new york times company final collapse enron amounted something living americans ever seen bank run like days deposit insurance enron appeared become wildly successful company creating new largely unregulated financial business energy trading business ran credit required suppliers users energy sign contracts called enron meet obligations months years later enron became something like bank takes depositors money promises pay back later unlike banks current era institution federal deposit insurance reassure customers rumors began spread trouble proved achilles heel enron collapse reminder big players unregulated markets financial health must beyond doubt advent deposit insurance bankers knew needed head bank run cash much cash would clear panic unwarranted nearly century ago j p morgan took lead fellow banking tycoons put millions needed keep trust company america open thus halted panic 1907 happened corporate descendants two major institutions involved rescue j p morgan chase citigroup major players enron debacle try strategy time instead enron kept arranging additional billion two loans clearly struggling find money morgan citigroup allowed word spread ready put money amounts relatively small somehow money never invested dynegy agreed buy enron put 1 5 billion cash assured would get control company crown jewel northern natural gas pipeline system money back deal collapsed final straw came tuesday negotiations revised dynegy takeover deal came efforts find 250 million 500 million enron assets could serve collateral new dynegy cash advance message companies traded enron clear even rescuer demanding collateral trouble finding given enron financial business could continue public haggling terms rescue assured rescue possible something would obvious original j p morgan seemed escape corporate heirs walter bagehot british financial journalist historian wrote 1873 every banker knows prove worthy credit however good may arguments fact credit gone markets enron helped create endure probably without enron interesting see whether participants continue resist regulation much past unregulated markets especially relatively new profitable superior market knowledge enron seemed prices visible value knowledge plummets regulation could bring openness could also bring structures like clearing systems reassure traders need worry credit trade markets continue unregulated enron collapse makes likely big players markets companies already regulated enough assure customers secure companies like major banks brokerage houses would bad news dynegy enron major competitor tried become acquirer crisis enron may exposed flaw business model energy trading companies said john diaz managing director moody interview yesterday companies industry need think carefully liquidity management said going looking hard litigation enron seems likely prolonged expensive may boil senator howard h baker jr famous watergate era question president richard nixon know know question asked arthur andersen enron auditor corporate officials past present asked particularly banks investment banks served enron affiliated balance sheet entities recent years enron disclosures last week showed needed pay far debts next year people understood case newly discovered loans materialize thin air money lent banks bond buyers balance sheet entities stuck losses known enron debt may claim financiers syndicated loans told debt among come looking good bond rating agencies six weeks ago enron put earnings release showing strong pro forma profits defined two agencies fitch standard poor reaffirmed enron rating triple b plus moody agency skeptical enron put rating review hinted would worst cut one notch none rating agencies seemed overly concerned detail disclosed enron time 1 2 billion reduction shareholder equity related later said accounting mistakes involving partnership run enron chief financial officer disclosure set cascade questions enron could answer reassuring way ran billions companies demanded protection keep trading enron could saved institution trusted whether chevron texaco put 1 5 billion cash dynegy invested j p morgan chase citigroup made clear willing stand behind enron credible backer would ended run one willing hesitance learned accelerated run whether wise avoid exposure may become clear emerges much creditors eventually get finally rating agencies yesterday downgraded enron relatively low levels junk knew likely force enron bankruptcy near future also knew one willing rescue company agencies viewed solid weeks yesterday dynegy walked away merger said longer willing trade enron unless enron put sufficient credit support knew support nowhere found copyright 2000 dow jones section c enron collapse chief executive foundation gives way chief big dream john schwartz richard oppel jr 11 29 2001 new york times page 1 column 5 c 2001 new york times company well anyone could imagine enron might collapse kenneth l lay stumped interview august dismissed questions vague clause energy company annual report hinted bigger problems stock price credit rating fell certain levels help said pressed questions bewildering constellation business partnerships involved enron former chief financial officer said getting way head least mr lay man big ideas crusader free markets risk taker texas wildcatter tradition taken eye ball busy befriending nation powerful politicians erecting one tallest buildings houston pasting enron logo city new ballpark little things turning mr lay big problems one another disclosures spilled company last month partnerships hidden billions debt years enron reported profits exaggerated government investigating rivals shunning enron energy trading desks mr lay built world leaders sure enough stock price tumbled day day credit agencies lowered enron ratings yesterday turning company debt junk shares penny stock three weeks ago mr lay tried salvage creation selling dynegy houston rival yesterday dynegy pulled deal deprived enough information repelled learned free markets mr lay put much faith destroyed matter weeks everything built going slower speed results would disastrous said bob mcnair houston energy entrepreneur sold bulk company enron three years ago enron said interview month like race car markets like unforgiving track lot harder keep track 200 miles per hour said hit bump track youth mr lay 59 nurtured abiding faith markets wisdom studied economics university missouri living home save room board eventually earned ph subject naval officer serving pentagon worked develop efficient accounting systems later served aide federal government regulator natural gas industry market enron would come dominate moving private sector worked way ranks natural gas industry becoming chief executive 1984 houston natural gas corporation big regional pipeline operator engineered merger internorth omaha pipeline company became chief executive combined company changed name enron mr lay saw enron mission far conduit fuel time gas prices regulated pipelines played relatively passive role buyers sellers could cut deals fly oil prices plunged mid 80 gas users began switching cheaper fuel oil mr lay returned washington argue successfully rules changes said would save pipeline business allowing operators shop best deals gas producers utilities new flexibility brought threat chaos however natural gas prices began fluctuating wildly new enron truly born help customers shield risk mr lay enron developed hedging contracts gas like traded markets corn copper winter wheat innovative gas bank let utilities lock long term prices craved enron lined gas supplies producers arranged delivery took cut every deal business became forerunner enron entry hundreds markets helping customers obtain supplies manage risks products ranging electric power pulp paper recently fast broadband access internet trading soon provided company profits traditional natural gas business companies including dynegy focused accumulating hard assets like pipelines turbines gas fields enron increasingly saw pure trading company almost limitless future reasonable chance become biggest corporation world mr lay handpicked successor enron chief executive jeffrey k skilling told authors book published business internet even book title radical e ge enron lessons rule web showed cachet company attained enron authors wrote creating culture radical creative thinking encouraged rewarded mr skilling abruptly resigned august six months job propelling mr lay back gritty details enron businesses sought leave others company grew become increasingly involved public affairs serving host global economic conference held houston 1990 republican national convention came city 1992 like leaders many big texas businesses construction colossus brown became good friends texas governor ann richards supported senator phil gramm texas whose wife wendy former chairwoman commodities futures trading commission joined enron board stand guy said ms richards business consultant new york asked specific said meeting meaning could count mr lay become directly involved whatever asked sign onto project show mr lay deepest political ties bush family 1980 became major fund raiser george h w bush mr bush lost 1992 campaign election president mr lay brought number senior bush aides enron directors consultants including james baker iii former secretary state robert mosbacher former secretary commerce mr lay also cultivated mr bush son george w long considered serious national candidate younger mr bush election texas governor 1994 mr lay became head governor business council important advisory post bond president bush personal governor mr bush sent mr lay kidding note 1997 one sad things old friends seem getting older like wrote 55 years old wow really old thank goodness young beautiful wife added reference mr lay wife linda 1999 mr lay sent handwritten christmas note mr bush wife laura linda proud look forward seeing white house wrote yesterday white house press secretary ari fleischer said treasury department monitoring enron downfall effect market asked president reaction mr fleisher said president reaction monitored ways enron collapse one example bursting internet bubble mr lay stylish dot com brat accounts immensely likable product middle america growing tiny rush hill mo driving tractor age 12 salting away savings 16 sister sharon recalled week bucking bales loading hay two jobs summer painting houses think could ever say something easy way said work ethic ran family mr lay father minister also sold farm equipment family finances spotty times money times money ms lay recalled still lays took people church need last decade mr lay earned 300 million enron mostly exercising stock options earlier month employees grew incensed prospect collecting big severance package company sale dynegy volunteered walk away 60 million payments mr mcnair houston entrepreneur known mr lay years suggested perhaps everything disclosed maybe people reported told wanted hear telling everything said mr mcnair said spoke mr lay recently found somewhat state shock mr mcnair added devastated end seems man whose company much help others manage risk could manage photos portrait chairman enron corporate report 1999 enron pg c 7 pg cl graphs enron collapsing house cards kenneth l lay starting ordinary pipeline business turned enron one fastest growing companies 1990 swiftly collapsed since revealing huge hidden debts causing stock plunge requiring restate earnings graphs track enron stock price sensor debt rating since sept enron earnings since 1997 sources bloomberg financial markets moody enron copyright 2000 dow jones section c enron collapse derivatives market deals risks faces novel one diana b henriques 11 29 2001 new york times page 7 column 1 c 2001 new york times company members international swaps derivatives association gathered washington last april man wanted hear jeffrey k skilling president chief executive enron enron helped create global market energy based derivatives customized risk swapping contracts enable companies hedge exposure changing energy prices supply fluctuations even among traders familiar interest rate swaps currency hedges energy contracts mr skilling presentation disappoint dazzled everybody seemed could figure way trade minutes phone call one industry executive said yesterday many executives crossing fingers hoping enron crisis would spread energy swaps market company done much enliven day ended fairly stable trading cautious sighs relief nobody quite sure much money energy related derivatives markets risk enron fails according swaps monitor publications collects data derivatives markets enron ranks among top energy swaps traders world par financial giants like bank america barclay end september enron gross derivatives trading liabilities amount money would owe market players filed bankruptcy stood 18 7 billion slightly june levels 1 3 billion less end last year level may overstate risk companies numbers take account unknown amount collateral enron may posted said paul spraos swaps monitor president collateral principle diminish enron actual liabilities derivatives market said typical energy swap company enter contract lock fixed price certain commodity like natural gas electricity company counterparty deal assumes risk future price changes quotes fixed price includes profit efficient trading pricing contracts requires marketplace large active traders last night signs major panic would drive major participants sidelines industry executives said likely enron problems cause serious difficulty sizable counterparty said mark c brickell veteran swaps market executive chief executive blackbird technology firm operates electronic swaps trading system may smaller firm manage exposure well might cause major problems system whole michael williams managing director tradespark rival enron online energy trading system agreed sign shrinkage marketplace yesterday far seen complaints lack liquidity added participants energy derivatives market rely standard contract developed international swaps derivatives association recognized courts contract clearly specifies rights party event default said robert pickel association chief executive late yesterday added markets appeared fairly resilient face extremely negative developments regarding major player least one lawyer specializes swaps contracts indicated might soon assess full impact lawyer ann hara lincoln neb said clients anxiety enron escalated sharply last days one believed would really happen said surprise shock really know exposed enron credit added telling clients prepare worst chart big bets derivatives enron derivatives trading activity substantial measured total gross amount money owes derivatives trading partners dec 31 2000 20 0 bil mar 31 2001 21 3 bil june 30 17 5 bil sept 30 18 7 bil source swaps monitor copyright 2000 dow jones section c markets stocks j p morgan fell 2 30 37 50 blue chip dow jones industrial average surrendered 160 74 points 1 6 percent 9 711 86 largest drop month lowest close since nov 12 standard poor 500 stock index slid 20 98 points 1 8 percent 1 128 52 technology laden nasdaq composite index dropped 48 points 2 5 percent 1 887 97 enron dragged market wall street questioned rally lifted stocks well sept 21 lows investors still expecting economic recovery 2002 pocketed profits worries share prices getting far ahead prospects corporate earnings milton ezrati senior strategist lord abbett bloomberg financial markets tables hot favorites lists stocks held largest number accounts merrill lynch compiled staff reports associated press bloomberg news bridge news dow jones reuters graph freddie mac yields tracks 15 30 year federal home loans since august source f h l c graph 2 year treasury notes tracks high yields percent since 2000 source treasury department copyright 2000 dow jones section c enron collapse rating agencies debt rankings finally fizzle deal fizzled first alex berenson 11 29 2001 new york times page 7 column 1 c 2001 new york times company end rating agencies hardly mattered weeks wall street wondered whether moody investors service standard poor fitch three major agencies rating corporate debt would drop enron rating investment grade enron dynegy warned cutting rating might jeopardize dynegy acquisition enron executives big securities firms stood profit deal pressed moody keep ratings investment grade even enron bonds fell levels indicating debt highly risky even investment grade rating could save enron business collapse last month series damaging revelations enron finances company partners demanded extra capital trades stopped trading time rating agencies decided yesterday enron might well default debt dynegy decided walk away really reason dynegy backed deal said todd shipman standard poor analyst first cut enron rating yesterday cuts dim hopes enron avoiding bankruptcy three agencies slashed enron debt far investment grade moody cut enron rating 5 notches standard poor lowered 6 fitch slashed 10 cc third lowest grade default probability said glen grabelsky senior director credit policy fitch enron 13 billion debt outstanding 10 billion loans made partnerships company guaranteed aggressive rating cuts may mollify investors sharply criticized agencies slow act recent weeks officials three agencies defended yesterday saying acted prudently dynegy agreed buy enron moody tried calculate chances deal would go enron would remain strong completed combined company would carry strong rating said john diaz managing director moody power energy group first questions seemed reassuring answers mr diaz said moody kept enron investment grade rating recent days companies shied away business enron losses soared basic cash flow slowing time cost structure company mr diaz said enron mounting losses discouraged dynegy said last 24 hours probability assigned three key issues looking lot smaller mr diaz said mr grabelsky said acquisition uncertainty presented agencies situation enron debt could strong deal worked highly risky middle ground said one copyright 2000 dow jones 76 ark short term bond fund 4 05 per cent position 3 4 september 30 50 first focus short intermediate bond fund 4 15 per cent slice portfolio bonds worth 2 07 september 30 although single digit positions loss par value 20 cents dollar 4 per cent holding could trim half fund return said scott berry morningstar bond fund analyst average intermediate bond fund returned 7 3 per cent far year according morningstar loss par value 20 cents dollar 4 per cent stake could reduce 7 3 per cent return roughly 3 3 per cent mr berry said bonds much downside upside typically downside never realised investment grade bonds strong enough weather storm enron caught everybody surprise last couple months said large investment grade bond funds held enron debt recent filings include 13 6 bn fidelity short term bond fund held 0 77 per cent worth 27 7 april 30 two strong funds 1 36 strong corporate bond fund held 0 77 per cent september 30 10 5 1 43 bn strong short term bond fund 0 63 per cent holding also september 30 worth 9 mr berry said managers investment grade bond funds still held debt probably selling although latitude hold bond lost investment grade status however also said junk bond fund managers unlikely buy fallen angel bonds xerox performed well c copyright financial times ltd rights reserved http www ft com copyright 2000 dow jones company inc rights reserved companies finance americas sec filing triggered merger crisis sheila mcnulty 11 29 2001 financial times c 2001 financial times limited rights reserved dynegy rescue bid enron went crisis mode 10 days ago said chuck watson dynegy chairman chief executive filing sec enron revealed previously undisclosed 690 note payment due week well 9 15 bn debt due end next year news provoked another round selling enron already plunging share price forcing dynegy 18 hour day talks ran thanksgiving weekend midnight tuesday may last straw shareholders mr watson said hours withdrawing dynegy 9 bn merger enron enron biggest energy trader us crisis confidence beginning october pushed brink bankruptcy every time thought pieces said every time put puzzle together clear strategy go forward said talks resumed yesterday 7 rating agencies began downgrading enron junk status mr watson called ken lay enron chairman chief executive say going work downgraded company thought already uphill battle difficult said mr watson said offered help way could two men long friendly cross town rivals parted amicably mr watson received several calls counter parties business thanking saving meltdown giving time limit exposure enron feel like saviour feel tired said acknowledged provided vast number enron counterparties partners customers chance better protect enron demise really strong effort make happen said end find solution risk dynegy responsibility shareholders employees says merger agreement allows walk away enron valuable asset northern natural gas pipeline though enron disputes worst would leave money invested saving enron solid going merger maybe better experience said c copyright financial times ltd rights reserved http www ft com copyright 2000 dow jones company inc rights reserved companies finance americas financial system braces chain reaction 11 29 2001 financial times c 2001 financial times limited rights reserved gary silverman enron woes raising risks financial system threatening set chain reaction markets could damage number participants unforeseen ways individual banks could lose hundreds millions dollars apiece loans enron regulators confident lenders sufficient capital weather storm bigger worry enron difficulties could trigger ripple effects much way russia default 1998 destabilised long term capital management hedge fund prices banking stocks tumbled yesterday new york london large part one really knows would happen enron removed financial scene enron sat massive trading book made complex derivatives transactions meant stay place decades side host counterparties many energy companies supervised banking regulators counterparties turn set borrowing trading relationships banks may completely unaware customers ties enron bankers also fear many counterparties new sophisticated trading may lax collateralising deals leading banks enron woes could result big hits profits every big lending bank exposure enron according members bank group meeting enron creditors last week one banker estimated could 500 bankers representing 20 banks jp morgan chase citigroup prominent members bank group barclays credit lyonnais credit suisse first boston deutsche bank many others exposed understood jp morgan chase direct exposure enron approaches 900 500 unsecured energy company assets citigroup direct exposure could reach 800 half unsecured european banks also could take hits according data loanware example westlb german state owned bank 580 bridge facility outstanding extended trade financing last year appear syndicated however analysts caution determining exposure particular bank enron virtually impossible outsiders many loans syndicated sold bankers also making increasing use credit derivatives enable buy insurance default counterparties barclays example one active arrangers finance enron syndicated initial exposure exposure estimated less 250 356 hand banks could exposed firms dealt enron sold credit default insurance trading partners according market participants investors rerated banking stocks yesterday account expected exposures citigroup 2 75 5 4 per cent 47 80 jp morgan 2 30 5 78 per cent 37 50 london shares barclays fell 4 per cent 86 p 2093 p additional reporting joshua chaffin new york rebecca bream london c copyright financial times ltd rights reserved http www ft com copyright 2000 dow jones company inc rights reserved companies finance americas traders avoid exposure junk status fallout adrienne roberts andrew taylor 11 29 2001 financial times c 2001 financial times limited rights reserved energy traders sides atlantic little business enron even credit rating agencies demoted debt world biggest power trader junk status rivals anxiously calculating potential exposure enron collapse least month since true extent company crisis emerged traders yesterday prepared buyers electricity gas group basis better owe owed circumstances would sellers enron said one trader last night group accounts 25 per cent energy trading us similar market share smaller european market loss large player could cause liquidity problems us said one analyst europe based energy groups however felt sufficient capacity market fill gap worrying knock effect particularly smaller companies enron unable honour long term contracts said brian senior director trading asset management innogy uk arm demerged national power collapse enron credit rating means may provide lot cash collateral cover long term liabilities money due early next monday said mr senior large energy groups stopped trading enron european markets two days ago simplest thing pull plug figured going said one analyst martin stanley president european energy trading txu another large us energy group said halted trading enron sorry see happen innovative company even yesterday events txu like large traders adding much could owed much would owe enron fail honour obligations looking various scenarios implemented credit event management process designed minimise cash exposure said mr stanley comfortable cash position added c copyright financial times ltd rights reserved http www ft com copyright 2000 dow jones company inc rights reserved companies finance americas downgrade final straw enron andrew hill sheila mcnulty 11 29 2001 financial times c 2001 financial times limited rights reserved writes andrew hill negotiations fate enron us energy trading group described lot moving parts yesterday parts finally broke loose credit rating agencies patience ended downgrade energy trader debt junk status dynegy erstwhile saviour withdrew immediate concern centred possibility systemic risk energy markets said gerald keenan partner pwc going engender daisy chain defaults enrononline group much vaunted web based commodities trading system shut according traders counterparties energy market stopped trading enron altogether shares peak last year traded 90 fell nearly three quarters 1 bonds trading levels consistent imminent bankruptcy two weeks fell enron survival since much smaller rival dynegy launched rescue bid november 9 depended fragile pact dynegy chevrontexaco owns 26 per cent dynegy backed bid enron lenders trading counterparties rating agencies logic pact essentially circular dynegy stepped three weeks ago enron early stages crisis confidence shareholders shocked enron admission would shrink shareholders funds 1 2 bn end transaction balance sheet vehicle established andrew fastow former chief financial officer suddenly lack transparency prepared forgive shares rose liability searching way arrest downward spiral ken lay enron chief executive linked chuck watson counterpart dynegy dynegy stock bid valuing enron tuesday closing prices 9 4 bn dependent however rating agencies downgrading energy group substantial debts junk status downgrade enron explained regulatory filing last week would require group repay refinance provide extra cash collateral 3 9 bn debts owed balance sheet trusts pressure enron dynegy bankers agencies refrained downgrading debt dynegy went ahead bid agencies justified position citing pending bid uncomfortable position agencies however resolve began crumble last week dynegy enron talked renegotiating deal tersely worded note issued last wednesday fitch another rating agency pointed dynegy steps away entirely merger enron credit situation seems highly untenable bankruptcy filing highly possible yesterday p moody fitch finally broke fragile ring confidence holding lenders bidders enron together note p explained stark terms virtuous circle confidence might become vicious downward spiral collapse enron securities capital markets made dynegy less likely complete takeover p wrote time enron franchise energy markets sustained significant damage making less attractive target enron disintegrate question whether chain reaction extend beyond houston company drag energy traders even banks finance analysts already begun liken situation long term capital management whose demise 1998 prompted federal reserve co ordinate rescue wall street banks avoid financial crisis however head one large commodities trader said biggest market participants long enough protect collapse enron smaller groups could affected fear complexities balance sheet may still contain seeds wider crisis additional reporting sheila mcnulty houston c copyright financial times ltd rights reserved http www ft com copyright 2000 dow jones company inc rights reserved companies finance americas downgrade final straw enron andrew hill sheila mcnulty 11 29 2001 financial times c 2001 financial times limited rights reserved writes andrew hill negotiations fate enron us energy trading group described lot moving parts yesterday parts finally broke loose credit rating agencies patience ended downgrade energy trader debt junk status dynegy erstwhile saviour withdrew immediate concern centred possibility systemic risk energy markets said gerald keenan partner pwc going engender daisy chain defaults enrononline group much vaunted web based commodities trading system shut according traders counterparties energy market stopped trading enron altogether shares peak last year traded 90 fell nearly three quarters 1 bonds trading levels consistent imminent bankruptcy two weeks fell enron survival since much smaller rival dynegy launched rescue bid november 9 depended fragile pact dynegy chevrontexaco owns 26 per cent dynegy backed bid enron lenders trading counterparties rating agencies logic pact essentially circular dynegy stepped three weeks ago enron early stages crisis confidence shareholders shocked enron admission would shrink shareholders funds 1 2 bn end transaction balance sheet vehicle established andrew fastow former chief financial officer suddenly lack transparency prepared forgive shares rose liability searching way arrest downward spiral ken lay enron chief executive linked chuck watson counterpart dynegy dynegy stock bid valuing enron tuesday closing prices 9 4 bn dependent however rating agencies downgrading energy group substantial debts junk status downgrade enron explained regulatory filing last week would require group repay refinance provide extra cash collateral 3 9 bn debts owed balance sheet trusts pressure enron dynegy bankers agencies refrained downgrading debt dynegy went ahead bid agencies justified position citing pending bid uncomfortable position agencies however resolve began crumble last week dynegy enron talked renegotiating deal tersely worded note issued last wednesday fitch another rating agency pointed dynegy steps away entirely merger enron credit situation seems highly untenable bankruptcy filing highly possible yesterday p moody fitch finally broke fragile ring confidence holding lenders bidders enron together note p explained stark terms virtuous circle confidence might become vicious downward spiral collapse enron securities capital markets made dynegy less likely complete takeover p wrote time enron franchise energy markets sustained significant damage making less attractive target enron disintegrate question whether chain reaction extend beyond houston company drag energy traders even banks finance analysts already begun liken situation long term capital management whose demise 1998 prompted federal reserve co ordinate rescue wall street banks avoid financial crisis however head one large commodities trader said biggest market participants long enough protect collapse enron smaller groups could affected fear complexities balance sheet may still contain seeds wider crisis additional reporting sheila mcnulty houston c copyright financial times ltd rights reserved http www ft com copyright 2000 dow jones nancy vogel times staff writers 11 29 2001 los angeles times home edition 1 copyright 2001 times mirror company new york enron corp lifeline merger deal collapsed wednesday mighty energy trader slid toward certain bankruptcy houston rival neighbor dynegy inc called planned takeover wall street major credit rating agencies slashed enron bonds junk status wednesday morning investors enron trading partners lost confidence well rating agencies fact recent erosion enron trading business harrowing slide stock bond prices forced ratings cut triggered dynegy decision back deal informed sources said dynegy ultimately balked coming across much debt expected evaluating enron finances watching helplessly value would acquisition shrank dramatically energy customers fled firm merger called enron exploring options protect core energy businesses kenneth l lay company chairman chief executive said brief statement skirted topic bankruptcy lack decent credit rating cripples enron ability run trading business franchise made one america admired companies also gave reputation arrogance greed particularly role california energy crisis computer screens went dark nationwide wednesday widely used enrononline internet based trading system shut enron stock already 95 year tumbled 3 50 close 61 cents wednesday trading stampede new york stock exchange one day record 339 million shares changed hands whole company worth 63 billion valued less 500 million twice cost enron new headquarters construction downtown houston dynegy shares meanwhile sank 4 92 35 97 stood dynegy agreed acquire enron nov 9 dynegy exited deal unwilling risk franchise credit credibility president stephen bergstrom said news conference wednesday know say morning said said wall street saying days hammering enron stock less half 10 41 share dynegy originally agreed pay dynegy process renegotiating price downward finally threw towel deal lack credibility stock bond investors prompted top two rating agencies standard poor moody investors service cut ratings enron knowing probably pronouncing death sentence ratings downgrade triggered clauses enron loan agreements require company immediately pay creditors 3 9 billion money analysts said ripples enron collapse spread far wide even u treasury market investors fled safety enron bonds plunged value enron led trend energy trading creating internet based network allowed millions suppliers purchasers electricity natural gas oil coal business one another trades contracts often spanning many years fixed price range intended protect major users suppliers energy fluctuations fuel prices energy market experts split long term effects enron collapse say fallout slight noting rivals already stepped take business trading partners nervous continue dealing enron whole industry thank dynegy basically buying two three weeks time unwind deals enron said analyst andre meade commerzbank securities new york enron noted complexity long term deals effects withdrawal key player could far reaching unexpected analysts said banking companies dozens lent money enron saw shares dip worries whether loans repaid shares rival energy companies lost value enron chief lenders citigroup inc j p morgan chase co 800 million loans may risk bankruptcy said richard strauss bank analyst goldman sachs photo caption copyright 2000 dow jones financial desk enron failure ripple effects analysis observers say consequences could severe energy prices well banks investors firm trading rivals see opportunities james flanigan chris kraul times staff writers 11 29 2001 los angeles times home edition c 1 copyright 2001 times mirror company houston likely bankruptcy enron corp could lead host troubling consequences including higher wholesale prices electricity natural gas financial distress banks firms well major bondholders investors analysts said wednesday however energy trading markets calm enron competitors picked slack looking opportunities build expand trading operations acquire enron assets concerns maneuvering came dynegy inc wednesday canceled proposed acquisition enron world largest energy trading company enron debts downgraded non investment junk status making bankruptcy filing highly likely banks starting worry financial meltdown enron collapse said peter fusaro president global change risk management consultancy new york enron debts partly hidden balance sheet partnerships could total 5 billion company assets experts new york houston estimated citigroup j p morgan chase major commercial bankers enron face losses enron files bankruptcy analysts said shares citigroup morgan declined 5 wednesday experts warned investment banking firms goldman sachs morgan stanley part enron sophisticated trading network also could run problems enron rose rapidly recent years almost 200 billion annual revenue neared bankruptcy shareholders faced wiped investors 9 billion enron bonds may get cents dollar analysts said enron employees 15 000 hold enron stock 401 k retirement plans stood among biggest losers company collapse many probably also lose jobs major lawsuits enron claiming lack loyalty prudence dealing employees among scores lawsuits confronting company arthur andersen accounting firm approved enron financial statements enron investigation securities exchange commission handling disclosure partnerships subsidiaries yet enron crisis approached possible bankruptcy filing brisk optimism prevailed among energy traders enron competitors enthusiastic opportunities buy parts enron fearful consequences big trader collapse stephen baum chief executive sempra energy san diego based utility holding company said enrononline houston company highly successful internet based trading operation would acquired companies carry energy trading future sempra would interested discussing formation new online trading firm baum said although name would enron online baum added sempra could interested acquiring several enron assets u abroad energy markets calm wednesday kevin fox manager commodities trading aquila energy kansas city mo based energy trader described markets surprisingly orderly enron troubles building well month fox explained halt enron online came surprise fox saw difficulty firm trading companies fulfilling enron contracts energy company cease operate still others saw disrupted markets price volatility fears aftermath enron collapse centered long term commitments firm made recent years handle energy needs giant entities university california system supply 10 years natural gas fixed price range electricity generating station problems could arise long term contracts typically become encrusted related transactions hedge price movements time interest cost financing complexity could make difficult firms pick enron long term contracts enron bankruptcy cover obligations maybe wholesalers either said gordon allott vice president kw international trading risk management firm san francisco customers going spot market could drive prices higher big bogey monster allott said however effect consumers disruptions could slight gerald keenan head energy practice noted enron collapse would affect basic supply demand electricity natural gas true determinant prices one major factor reducing effect enron collapse markets energy supplies growth recent years energy trading broad industry 300 billion annual activity contracts electricity natural gas oil fuels produce intercontinental exchange consortium six trading firms handles energy trades today enron sempra companies acquire operate enrononline industry two major groups rely need energy trading growing deregulation change electric utility industry trading absorbs risks fuel price movements like used passed retail customers form adjustments monthly bills fox explained breadth expertise new industry well months enron decline gave competitors markets time adjust could promise relatively stable aftermath enron downfall however post enron future likely see closer regulation energy contract trading increase disclosure terms risks enron top executives along arthur andersen accounting firm face months possibly years lawsuits shareholders suffered losses enron stock lost 60 billion market value single year lawsuits enron employees challenging firm treatment 401 k accounts go forward even enron bankruptcy said attorney lynn sarko keller rohrback seattle law firm bringing one suits behalf employees still liability faced fiduciaries officials administrators savings plan companies insured sarko said flanigan reported los angeles kraul houston times staff writer jerry hirsch contributed report graphic fallout wall street los angeles times copyright 2000 dow jones financial desk markets enron troubles uncertainty send stocks tumbling wall st sellers gain upper hand many analysts say markets due pullback times staff wire reports 11 29 2001 los angeles times home edition c 4 copyright 2001 times mirror company stocks tumbled wednesday amid investors nagging uncertainty economy energy giant enron headed toward financial collapse meanwhile treasury bond yields little changed sliding early session rebounded government got tepid reception record sale two year notes wall street dow industrials slid 160 74 points 1 6 9 711 86 market steady decline session tech dominated nasdaq composite suffered 2 5 decline 48 points 1 887 97 losers topped winners 2 1 new york stock exchange nasdaq early week market seemed poised retake 10 000 level dow 2 000 level nasdaq index instead sellers gained upper hand analysts noted many investors convinced economy improve first half 2002 weeks hopes business improve early next year boosting market woods yet economy said richard jandrainof banc one investment advisors corp federal reserve latest report conditions region released wednesday painted generally somber picture economy still many analysts said stocks sell week appear anything special reality due pullback said barry hyman chief investment strategist ehrenkrantz king nussbaum hyman analysts actually pleased see investors take cautious step back fearing market rising much quickly market softness spread across sectors one weakest spots utilities dropped dynegy backed planned merger enron nyse listed enron broke record heaviest trading single day 339 million shares changing hands fell 3 50 61 cents previous volume record 304 million shares intel traded nasdaq sept 22 2000 investors selling utility stocks wednesday dow utilities average fell 2 9 52 week low 279 95 financial stocks slammed worries spillover enron collapse j p morgan chase sank 2 30 37 50 citigroup dropped 2 75 47 80 dow retailing issues remained vulnerable concerns holiday shopping season worst decade gap stumbled 79 cents 13 61 prudential securities reduced rating clothier sell hold called holiday merchandise poor electronics retailer best buy fell 1 18 69 90 bed bath beyond declined 74 cents 32 34 technology also weaker investors fear still much inventory enough demand chip equipment maker altera fell 1 83 21 83 ahead update business fourth quarter market closed altera reaffirmed revenue projections year final three months ibm another dow stock dropped 2 05 112 15 announcing cut 1 000 jobs seven u chip plants slowdown microprocessor industry bad stocks normally would good bonds case close trading wednesday yields fell early day reversed government biggest sale ever two year notes flooded market debt treasury sold 21 billion two year notes yield 3 19 billion sold october part effort government finance spending increase using short dated debt five year note yield ended unchanged 4 29 10 year note ended 4 93 4 92 copyright 2000 dow jones bankruptcy expected laura goldberg copyright 2001 houston chronicle dynegy pulled deal buy enron corp wednesday morning appeared likely option enron bankruptcy protection wall street houston widely expected enron would file bankruptcy perhaps soon today probably imminent said andre meade stock analyst commerzbank securities new york jeff mcmahon enron chief financial officer said wednesday night enron evaluating options restructuring balance sheet debt ways return business health mcmahon said enron considering chapter 7 bankruptcy filing would involve liquidation selling assets rule chapter 11 filing lets company protect assets works reorganization plan stressed enron also reviewing options declined describe options said prefers fix enron without bankruptcy earlier wednesday enron said suspended making payments needed maintain core business operations working retain employees needed trading core energy businesses layoffs announced wall street believe enron real choices bankruptcy shares enron lost much value wednesday closing 61 cents company dropped standard poor 500 index also broke record shares traded day oct 16 buyout dynegy let alone bankruptcy unthinkable houston largest company world largest energy trader day enron disclosed millions financial losses related investment partnerships business run enron since ousted chief financial officer days weeks followed securities exchange commission started investigating enron stack shareholder employee lawsuits filed enron restated earnings made disclosures balance sheet wall street found troubling dynegy swooped rescue enron two companies agreed merger deal nov 9 continuing bad news surrounding enron put pressure deal wednesday morning appeared enron dynegy would find way rescue merger revamping terms several days talks among companies bankers others chuck watson dynegy chairman chief executive said interview concluded solution reachable final confirmation watson standard poor wednesday morning cut enron credit rating called junk status effectively halting enron ability run core business energy trading marketing dependent access cash credit trading franchise key reason dynegy interest enron p said rating report cut enron credit rating believe merger expected close six nine months would go companies inked deal nov 9 watson said expected surprises enron financial state deal included escape clauses case among reasons dynegy cited ending merger breaches representations enron also invoked escape provision let dynegy walk away enron material adverse change business never willing risk franchise credit credibility watson said knew say morning said since nov 9 enron made new financial disclosures saw significant drops stock price trading business caused dynegy seek new terms merger agreement including lower price cash infusions stabilize enron restructuring enron debt repayment schedule watson traced beginning end nov 19 day enron filed 10 q securities regulators companies must file 10 q every quarter details earnings balance sheet sec dynegy hit surprise enron disclosed would pay specific debt obligation worth 690 million almost immediately saw enron cash situation expected watson said disclosures said caused enron trading business somewhat uptick merger announcement go sort blow never really recovered watson said watson said worked hard rescue deal would go global solution would take care problems one said enron needed another 1 billion 3 billion infusion keep going sources told chronicle j p morgan chase firms reassuring investors another jolt michael davis copyright 2001 houston chronicle shortly enron corp bond ratings cut junk status wednesday energy trader charlie sanchez watched company trading business simply vanish computer screen watched different markets peel screen one one said sanchez energy markets manager gelber associates houston although enron troubles well known collapse enron trading business wednesday still jolted traders sanchez said shock downgrade enron debt first domino fall wednesday followed shutdown enron online trading business announcement dynegy called deal buy enron enrononline company internet commodity trading platform went early wednesday signaling company temporarily halted trading altogether enrononline handles 60 percent company trading business 2 8 billion day deals enron chief financial officer jeff mcmahon said know enrononline would trading however company continues telephone transactions said commodities markets appeared weather event shutdown company far biggest player market led companies regularly dealt enron hastily issue statements assuring investors going dragged well enrononline many traders revert calling around numerous sources find market rather simply logging onto enrononline clicking single tab size market wanted trade far overall impact commodities markets new york mercantile exchange loss enron trading business whatever period likely big said kyle cooper oil analyst salomon smith barney houston could widen bid ask spreads places terms liquidity nymex talking thousand contracts 60 000 70 000 contracts cooper said one trader described enron needle haystack terms total long term capital markets nonetheless shutdown prompted call closer monitoring briefing white house u treasury department officials kept close eye credit energy markets wednesday discerned upheavals troubles enron monitoring credit markets every day treasury spokeswoman michele davis said seen anything extraordinary exit enron lead change balance power trading business traders said companies likely benefit loss enron trading activities include el paso corp mirant corp reliant energy duke energy market appeared worried possible losses connected enron el paso corp stock took beating wednesday 3 59 close 44 91 concerns much exposure enron trading business company issued statement saying systematically reduced trading enron past weeks due enron loss investment grade status new business supported cash collateral el paso foresees material disruptions energy trading markets resulting today downgrades potential enron bankruptcy filing according company statement el paso natural gas power trading exposure enron 50 million company said adding expect adverse earnings impact enron difficulties atlanta based mirant said exposure enron 50 million 60 million noting begun limiting exposure risk early described enron crisis calpine corp said net exposure enron means enron owes calpine gas electric trading offset calpine liabilities enron enron faced cash crunch part trading partners lost confidence company would cash pay bills result either demanding collateral ensure delivered trades restricting dealings houston based company company going evaluate situation producers utilities going case case situation going take long time figure said one trader asked quoted name shortly news company latest problems broke flood huge trading orders came enron leading traders speculate company scrambling clear accounts filing chapter 11 bankruptcy protection typical order company would 100 contracts single lot buy sell commodities natural gas debt downgrade announced single orders 1 000 2 000 contracts began coming company flood large orders enron caused near month futures contract new york mercantile exchange spike fall quickly late morning trading could leave exposure whims market one trader said needed get enron reportedly working past weeks line alternate parties hand thousands contracts company handles daily many long term periods 10 15 years obscure contracts items emissions credits weather derivatives may difficult unload addition natural gas power oil enron trades items broadband paper metals water really think lot kinds stuff foreign esoteric enron making market take others pick sanchez said nov 29 2001 12 54 houston chronicle bankruptcy filing enron could largest ever tom fowler copyright 2001 houston chronicle enron files chapter 11 bankruptcy week many observers expect may largest event date 61 7 billion assets books sept 30 deal would top texaco 1987 bankruptcy sought protection company 35 9 billion assets would also beat 1988 bankruptcy financial corporation america 33 9 billion assets value assets liabilities enron books continues moving target however enron unaudited quarterly financial report indicates 61 7 billion assets 27 billion liabilities 6 5 billion long term debt 15 3 billion deferred credits turmoil past month changed much asset side example company says properties like natural gas transmission lines fiber optic network electric generation facilities worth close 14 6 billion much gas pipeline properties encumbered recent weeks however company efforts raise additional cash credit banks likelihood company could find buyers pay asking price assets like fiber optic network overseas power plants highly unlikely said ralph pellechia credit analyst rating agency fitch really buyer market seller market pellechia said anticipated lot assets particularly international assets would go lot less initial investment company also counts 7 1 billion investments advances unconsolidated affiliates assets could include enron equity used back complicated balance sheet financing partnerships led company current woes given constant surprises surrounding partnerships company steeply dropping stock price worth less cup coffee 7 1 billion figure also suspect several unexpected debt obligations related partnerships enron operated also changed tally since sept 30 analysts say debts company range 13 billion 17 billion including another 3 9 billion debt repayments related two special partnerships osprey trust marlin water trust come due quickly expected following credit rating agency downgrades wednesday changes making situation like sand falling fingers said bill porter chairman houston law firm porter hedges alternative left stabilize situation bankruptcy protection company officials say still reviewing options wednesday said temporarily suspending payments creditors needed maintain core energy trading operations dynegy termination merger ratings agency downgrades evaluating exploring options protect core energy businesses enron chairman ceo ken lay said statement sources familiar broken enron dynegy deal said paperwork bankruptcy filing works weeks even preceded nov 9 merger announcement say preliminary deal secured day enron would file bankruptcy following monday recent efforts enron bankers including j p morgan chase citigroup get creditors hold demanding payments may mean pending bankruptcy filing known prepackaged deal prepackaged bankruptcy creditors agree beforehand sale company assets would divided among would save parties untold millions legal fees would spent fighting company assuring least recovery investments prepackaged bankruptcies common said jay westbrook professor university texas school law allow companies buy parts faltering business want without hassles long drawn legal battles purchasers essentially pay money walk away proceeds getting divided among holding claims westbrook said chapter 11 bankruptcy added benefit freezing many lawsuits filed angry shareholders lawsuits would eventually handled bankruptcy court including determination validity claims suits enron bankruptcy prepackaged almost assured value enron remaining businesses energy trading disappear said bob chapman principle houston management consulting firm king chapman broussard guys well bankruptcies lawyers chapman said usually see long period people trying carve beast remains business continue atrophy company likely look simply liquidate assets would first chapter 11 bankruptcy filing could later converted chapter 7 filing court appointed trustee overseas liquidation remaining assets perspective lot future rests hands banks said fitch analyst glen grabelsky intentions granting forbearance kind liquidity willing extend enron answer nov 29 2001 12 56 houston chronicle ballpark place project stopped dead tracks ralph bivins copyright 2001 houston chronicle construction ballpark place tower postponed partly uncertainty surrounding enron corp project developer announced wednesday trammell crow co anticipated breaking ground week 34 story tower across enron field said matt khourie heads trammell crow operations houston ballpark place planned parcel land owned developer bounded preston prairie crawford la branch streets 108 million ballpark place expected dominant skyline feature rising left field enron namesake stadium ballpark place would included 253 000 square feet office space 216 apartment units ground level retail space several levels covered parking questions surrounding future enron corp major employer downtown key encouraging trammell crow shelve plans khourie said enron 3 million square feet downtown office space including 40 story building construction enron need space decreases downtown office market sure feel aftershocks given national economic uncertainty uncertainty associated future availability class space springing recent events enron decided delay construction start future visibility improves khourie said written statement widely speculated dynegy another houston energy firm would move new enron building dynegy plans buy enron fell apart wednesday leaving questions new 1 2 million square foot tower trammell crow abandoned plans ballpark place khourie said company intends start construction perhaps next year economy improves still bullish project residential office mixed use concept unique location also optimistic mid long term prospects houston central business district khourie said decision delay relates directly short term environment currently facing