|THE IMPACT |
Thousands of Enron employees, many with similar skills, were left unemployed. Enron encouraged employees to invest in the company, matched their 401(k) contributions with company stock, and briefly froze the plan in late October, barring employee sales, before the stock's final plunge. Thousands of employees and retirees have next to nothing in their accounts.
One of Enron's biggest lenders, J.P. Morgan Chase, announced losses of $456 million as of Jan. 2002 related to Enron's demise. Citigroup recorded $228 million as of Jan. 2002 in Enron-related losses. But banks and regulators said the overall impact would be minimal, because no one bank is overinvested in Enron.
Enron's stock lost nearly all its value, dropping from almost $34 on Oct. 16, 2001. Billions of dollars in stock value were erased. The stock has been delisted from the New York Stock Exchange.
Several prominent politicians from both parties returned Enron contribution money to the company or contributing it to charity. Others have been asked about their relationships with Enron.
A jury found Arthur Andersen guilty of obstruction of justice, the first accounting firm ever to be convicted of felony. As a result, Arthur Andersen can no longer perform audit work and the The Big Five has become the Big Four.*
*The other members of the Big Five are Deloitte & Touche, Ernst & Young, KPMG International and PricewaterhouseCoopers