On Bauer Business Focus — A conversation on the 10th anniversary of the fall of Enron with Andrew Schneider, business reporter for KUHF 88.7 FM.
As a result of the bankruptcy and ultimate collapse of Enron Corportaion on Dec. 2, 2001, the federal government has created regulations and policies like the Sarbanes-Oxley act to prevent further crises in big corporations.
Sherron Watkins, a former Enron vice president who is widely considered to be a key player in uncovering scandal within the organization, stopped by Bauer Business Focus to discuss the legacy of its fall.
“I’m afraid we haven’t learned much,” Watkins said. “I think the Department of Justice, and society in general, was hoping that the federal prosecutions of executives at Enron would deter corporate misbehavior and we didn’t see that in any of the big banking crises, so I’m afraid we haven’t learned anything.”
But, Watkins said she believes there are lessons that can still be learned to avoid future crises.
“My biggest concern is this undercurrent throughout the country that government regulation in any form is harmful. We don’t mind regulations in so many arenas but the business lobbying effort has convinced us that regulation around business will dampen our capitalist system and it has been shown time and time again that a capitalist system without regulation will do harmful things.”
Click here to hear the full interview.