The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron Read Free Page A

through its detailed reports and hearings on Enron’s incestuous relationship with commercial and investment banks, shed considerable light on dark corners of the Enron tale. We are grateful for the assistance of the committee and its staff, including Elise Bean, Robert Roach, and Mary Robertson. The Senate Committee on Governmental Affairs produced enlightening work on the watchdogs that didn’t bark—government regulators, Wall Street analysts, and credit agencies.
    Our stalwart agent, Liz Darhansoff, served as a fierce negotiator, sage critic, and fervent advocate. Our editor, Adrian Zackheim, instantly understood how a complex business story could make a gripping tale and was with us all the way. We’d also like to thank Will Weisser, Mark Ippoliti, Alex Gigante, David Hawkins, and Bonnie Soodek.
    Finally, we owe our greatest debt to our loved ones.
    Bethany’s parents, Helaine and Robert McLean, while far removed from the specifics of Enron, added their wisdom to the age-old human elements of the story. Her sister Claire McLean offered constant words of encouragement and perfect company for the occasional shoe-shopping break. Bethany’s husband, Chris Wilford, kept a glass (or two) of wine waiting long into the night. And Barolo provided a constant reminder of what it really means to be a bulldog.
    David Elkind, Ellen Duncan, and Mary Clare Ward aided this project in untold ways. Laura Elkind, Peter’s wife, did double duty, offering insightful editorial suggestions and tending bravely to the home front (Stephen, Landon, George, Adele, and Sam) while enduring long absences and late nights of writing with remarkable patience, support, and grace.
    To all of them, we are especially grateful.
    —Bethany McLean and Peter Elkind
September 2004

CAST OF CHARACTERS
    Ken Lay —Founder, chairman, and CEO of Enron.
    Jeff Skilling —President and chief operating officer. Served as CEO from February to August 2001.
    Andrew Fastow —Chief financial officer.
    Rebecca Mark —CEO of Enron International and later of Azurix.
    Jim Alexander —CFO of Enron Global Power and Pipelines (EPP).
    John Arnold —Enron’s young trading superstar.
    Ron Astin —Vinson & Elkins lawyer.
    Cliff Baxter —Jeff Skilling’s chief deal maker and trusted confidant. Briefly served as CEO of Enron North America.
    Tim Belden —West Coast power trader who figured out how to game the California market.
    Arthur and Robert Belfer —father-son Enron directors and New York–based investors.
    Louis Borget —CEO of Enron Oil. Went to jail as a result of Enron Oil scandal.
    Ray Bowen —Enron finance executive. Became treasurer after Ben Glisan was fired.
    Ron Burns —Former CEO of Enron’s pipeline division. Briefly co-CEO with Skilling of Enron Capital and Trade Resources (ECT).
    Rick Buy —Head of Risk Assessment and Control division (RAC).
    Rebecca Carter —Enron’s corporate secretary and Skilling’s second wife.
    Rick Causey —Chief accounting officer.
    Margaret Ceconi —Former GE manager who joined Enron Energy Services (EES). Later tried to blow the whistle.
    David Cox —Enron Broadband Services’ chief deal maker.
    Wanda Curry —Enron accountant who dug up problems at EES.
    Dave Delainey —Executive who took over EES from Lou Pai.
    Jim Derrick —Enron’s general counsel.
    Joseph Dilg —Vinson & Elkins lawyer.
    Bill Dodson —Michael Kopper’s domestic partner.
    John Duncan —Enron director and chairman of the board’s executive committee. Gave Lay his first job as CEO.
    Jim Fallon —Trading executive who took over Broadband after Ken Rice left.
    Lea Fastow —Andy Fastow’s wife and former assistant treasurer at Enron.
    Mark Frevert —Longtime Enron executive. Became vice chairman in the last months.
    Ben Glisan —Fastow’s structured-finance accounting whiz. Became Enron
treasurer.
    Wendy Gramm —Enron director and former chairman of the Commodities Futures Trading Commission. Wife of U.S. Senator Phil Gramm of