06 October 2005

Enron scandal: Olson's testimony

Olson was one of the two financial industry guys who tipped off the journalists (including the ravishing Bethany McLean) who broke the Enron scandal. He was apparently or allegedly or really sacked by his broker employers for his "neutral" view of Enron. Enron then apparently or allegedly or really gave 2 big deals to Olson's former employers.

This is his prepared witness testimony to the House Committee on Energy and Commerce's Subcommittee on Oversight and Investigations regarding the financial collapse of Enron.

It is highly readable: I love his style.


By the way, one other thing that came out of the discussion with the scrumptious Bethany McLean was regarding her other informant, a guy called Chandos. Upon brilliant question by yours truly it turns out that this Chandos was a professional short seller. According to the delectable McLean, short sellers are often very well informed. And although they have a bad reputaion - they are perceived as negative, pessimistic, unpatriotic, unAmerican - and although there are regular attempts to ban short selling (it is in fact banned in Australia) - the Enron story shows that short-sellers have an important role to play. I would add that their role is rather like carrion scavengers: they are a distasteful but very necessary part of the ecosystem.

According to the more cynical Randy Bentwick (genghisappreciation.blogspot.com), short-sellers they not only have an interest in finding companies that are not as crash-hot as everyone thinks they are, but they have a financial incentive to make sure everyone finds out about it ASAP; one of the best ways of achieveing this being of course to tip off a financial journalist looking to make her name, such as the charming McLean.


Post a Comment

<< Home