L>audioeditorfree.com: autumn of EnronWhat Enron Employees have actually Lost tens of Thousands hit by task Losses, Plummeting share Jan. 22, 2002
-- Enron"s financial implosion has price thousands of employees their jobs, and also leaves the 14,000 world still to work by the bankrupt power trader in limbo. Many of those who stay are spending their time working on resumes and also looking for other work.Many that those workers were additionally Enron shareholders. As stock in the firm dropped from much more than $80 per share to mere pennies, 10s of thousands of human being saw your pension and also investment accounts depleted or destroyed.All told, Enron employees room out an ext than $1 billion in pension holdings. In a cruel little of symmetry, that"s roughly the very same amount that a team of 29 Enron executives supposedly amassed while selling stock in the 2 years preceding the collapse.
Enron"s LessonsBusiness analysts say there are lessons to it is in learned native the losses occurs by Enron employees and shareholders. Amongst them: analysts urge investors to protect against tying up more than 10 percent the their full holdings in the stock of any solitary company.It is common for job to pack their 401K program with agency stock, because there are countless tax and also cash circulation benefits native doing so. Here, Congress might step in. Sen. Barbara Boxer (D-CA) has introduced a bill the would protect against companies indigenous loading retirement funds with much more than 20 percent that their very own stock.Stories of separation, personal, instance loss are equally staggering. One 30-year employee lost $1.5 million. One more saw a $2 million investment portfolio sliced to $4,000. A married couple who both operated at Enron were fired in ~ 30 minute of every other and also lost $600,000 in retirement savings. Plenty of employees speak they stuck to their investments because Enron CEO Kenneth Lay and also other executives expressed belief in the company"s future -- even amid mounting indications that the agency was in a nosedive.But in late October, as the depth the the disaster ended up being obvious, many employees considered selling the stock in your 401K to plan -- yet were can not to, because that a duration of three weeks, under regards to a firm freeze rule. Because that many, that freeze was the last cruelty: In the three-week period, the stock lost about half its remaining value. Meanwhile, executives -- untouched by the freeze -- had actually been able come unload your stock in ~ $70 or $80 a share.Congress and the Securities Exchange Commission are investigating what walk wrong at Enron through an eye towards preventing similar catastrophes. President shrub has asked his financial team to review the rules and regulations that prohibited Enron employee from bailing out of their 401K plans throughout that crucial period in October.Meanwhile, lawyers space helping 10s of thousands of Enron victim -- employees, retirees and outside investors -- look for to reclaim some of your money. At the very least three class-action lawsuits target Enron executives, directors and also consultants, alleging the these corporate policemans knew in advancement that problem was brewing and also sold your stock accordingly.The righteousness Department has actually opened a criminal probe, and the SEC is investigate the possibility of illegal insider trading. Lawyers for the executives -- and also many analysts -- say the share sales were no illegal. A federal judge in Houston freshly refused a request from a new York bank to frozen the audioeditorfree.com of the Enron executives.Sen. Joseph Lieberman (D-CT), that will head among the countless congressional committees investigating the disaster, states it"s hard to overstate the effects of Enron"s failure: "Everyone in America who either relies on a pension fund... Or a 401K plan for retirement security... They need to say to the federal government: "Hey, protect me.
You are watching: How many enron employees lost their jobs
See more: How Many People March For Life 2018, March For Life: A Look At The Largest Pro
Make sure that this nightmare... Never ever happens come me.""