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Maybe you can only glimpse the soul of a company when it breaks open right before your eyes. But we know now, thanks to Watkins, that Enron hid billions of dollars in debts and operating losses inside private partnerships and dizzyingly complex accounting schemes that were intended to pump up...

Author: /time Magazine | Title: What Did They Know And...When Did They Know It? | 1/28/2002 | See Source »

About the only thing that didn't fail was Sherron Watkins' flair for numbers. In the sad tale of Enron's collapse, Watkins is the closest thing to a hero in sight. When she goes out for coffee, strangers stop to give her "attagirls" and ask for her autograph. She...

Author: /time Magazine | Title: What Did They Know And...When Did They Know It? | 1/28/2002 | See Source »

For now, the House Energy and Commerce Committee and federal agents probing Enron's fall are skipping over the accounting schemes and other questionable business practices--including a bizarre sex angle: a scheme to offer pornography via the Internet. The investigators instead have zeroed in on what officials from Enron...

Author: /time Magazine | Title: What Did They Know And...When Did They Know It? | 1/28/2002 | See Source »

It took Watkins weeks to work up the nerve to write her first letter to Lay. She had been working for chief financial officer Andrew Fastow last summer, looking for assets to sell as Enron ran into financial trouble while transforming itself into a company that traded energy, water, weather...

Author: /time Magazine | Title: What Did They Know And...When Did They Know It? | 1/28/2002 | See Source »

Watkins learned Enron was losing money on two equity investments: network-equipment supplier Avici lost 98% of its value, and another, New Power, an energy retailer that had Ken Lay on the board, dropped more than 80%. Because both firms were backed by Enron stock, Watkins knew their downfall was...

Author: /time Magazine | Title: What Did They Know And...When Did They Know It? | 1/28/2002 | See Source »

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