Enron Corporation field for bankruptcy protection under Chapter 11,Enron failed as a result of a complex combination of business and governance failures. As noted in the quotation from the Board report reprinted above, the failures involved organizations and individuals both inside and outside of Enron. But outside of the courts and sensational press, the question remains as to how the system allowed it to happen? Why did the many structures and safeguards within the U.S. corporate governance system not catch, stop, or prevent the failure of Enron?
Enron’s Collapse