Financial Oversight of Enron: The SEC and Private-Sector Watchdogs
Serial Number
Levin Center Identifier
Document Date
2002-10-08
Report Length
131 pages
Policy Agendas Project Major Code
Policy Agendas Project Minor Code
Additional, Minority, Dissenting Views
Report Type
Found Using Methodology
Yes
Committee(s)
Subcommittee(s)
Commission(s)
Idependent Author(s)
Brief Executive Summary
The report, authored by the Senate Committee on Governmental Affairs under the leadership of Chairman Joseph I. Lieberman and Ranking Member Fred Thompson, delves into the aftermath of Enron's bankruptcy in 2001. Its purpose was to examine the efficacy of various public and private entities tasked with monitoring Enron's activities and protecting public interests. Through its investigation, the Committee uncovered widespread systemic failures across multiple fronts, including Enron's board of directors, auditors, investment banks, attorneys, and credit rating agencies. These entities failed to detect or address the company's fraudulent practices effectively. The Securities and Exchange Commission (SEC) also faced scrutiny for its reactive approach to regulation, revealing fundamental flaws in the financial regulatory framework. The report concluded with a call for urgent reforms to restore investor confidence and enhance market oversight, especially in the wake of subsequent corporate scandals like WorldCom and Tyco.