but enron took it to extremes.n to not pursue the top credit rating but obviously more borrowing power would have helped the company 20 years ago enron also focused on deals, insiders say often at the expense of the fundamentals. that can look good from the outside until it doesn't or as was the case at enron until ju juries find those deals were criminal and don't take the lesson take a backseat there was a desire to follow the rules but former prosecutors say it didn't go far enough and that left room to cheat. >> what's changed is, there's now a huge infrastructure that's designed to stop that before it becomes a big problem. so a lot of companies have large compliance functions that are empowered and report, for example, to the board or to the ceo. and that wasn't the case before. >> reporter: in the wake of enron, congress passed the law that mandates things like auditor independence and company officers signing off on financial statements and there's compliance in there as well that can be maddening for compa

there it is, the famous glass tower of enron used to have the crooked e logo. chevron has officers here. enron left behind more than just an office building and a financial disaster some of the things that we take for granted today trace their roots right there to 1400 smith street >> mr. jenkins, it must be evening there. >> reporter: 20 years before zooming was a thing, this enron promotional video was touting video conferencing on the internet and streaming video years before netflix >> enron communications is changing how the world communicates >> we're changing the industry. >> reporter: scott yager was head of strategy for the division that became enron broad band we spoke on zoom >> we were the only ones focused on broad band experiences and broad band did include streaming media. >> reporter: before that, enron created the modern day markets for natural gas and electricity setting the course for how energy is priced to this day energy markets expert ed hurst who worked with prosecutors to bi build their case concedes that enron was a pioneer. >> did enr

i'm back there will be a great deal of news enron as was expected. >> enron is gone, mark enron is, you i was happy not to have been in the morning. so many people were blaming me for enron's demise, the told blame the messenger as opposed to listening to the message. >> if it were cramer, they would have saved themselves ten bucks. >> yeah. >> sorry i was looking at myself. >> same thing. >> i like her. >> it has been 20 years. >> that was 20 years, leslie when you were 12 exactly 20 years ago, energy company enron did declare bankruptcy it was a stunning fall from grace, of course, it's spawned a scandal, nearly two dozen criminal convictions and sweeping government reforms. scott cohn has a look at the legacy >> mr. jenkins >> reporter: 20 years before zooming was a thing, this enron promotional video was touting video conferencing on the internet and streaming video years before netflix >> enron communications is changing how the world innovates. >> reporter: scott yeager was ahead of strategy for the division that became enron broadband. we spoke on zoom >> we were the only ones fo

enron was an established company.a public company, where theranos was still a startup possibly aiming to go public at some point there was only a little more meat on the bone only because enron had been around for longer and was in these different areas. but, yeah, people have to look behind the hype, and companies also have to look behind the hype and make sure that they are presenting the clearest possible picture of what they're doing. >> and we appreciate that you're always looking behind the hype scott cohn, thank you. >>> up next, shares of elastic sinking despite stronger than expected results we have an excsiluve interview, next "the exchange" will be right back ♪ ♪ ♪ (sha bop sha bop) ♪ ♪ are the stars out tonight? (sha bop sha bop) ♪ ♪ ♪ alexa, play our favorite song again. ok. ♪ i only have eyes for you ♪ t'was the holiday season, and joy filled the town. except for scrooge with his perma-frown. no! the gift of a peloton bike did touch his soul. riding fast, flowing proud, getting hella swole. you can do it

the amazing rise and scandalous fall of enron. it's good to have you both with us thanks for being here today. >> hi, guys. >> jim, i'll start with you, in looking at the research and looking back at history, you were first turned on to the enron story, i think, in october of 2000 because of an article that was written in the texas version of "the wall street journal" about accounting practices at large energy trading firms, is that correct that's correct, it was a piece in the texas journal by reporter john weil who many years later came to work for us. it talked about enron getting approval from the sec for so-called mark to market which was much more appropriately called marked to model for the energy derivative business and what that led was aggressive accounting on their derivatives book in lots of areas, but that was just sort of the opening chapter and what got us to open a file in september, october of 2000. >> you took a look at their 1999 sec filing and then actually put the short on in november which as i said in the in

means enron was not a fraud. >> the people that worked at enron, there were tens of thousands of themrking people trying to do the right thing the problem was they had a culture at the top that was not that way. >> reporter: there was a lot, though, that also came out of that culture that still exists today. how should we look at that, the things that they did that were literally pioneering >> i'm not saying they didn't have good ideas or do anything but they tried to monetize things before they were really ready. >> reporter: >> leslie called well says when that happened, that's when enron executives crossed the line, trying to make it look like the company was making money where they didn't. a lot of those executives dispute that, nonetheless, some two dozen people pleaded guilty or were convicted of all manner of financial crimes. caldwell covered her teeth going after the mob. she brought those tactics to the enron task force and she says that is another innovation that came out of enron, aggressive prosecution of financial crime that she says caused corporate america to be more a

enron filed for bankruptcy december 7th, 2001 the company shares morts more than $90 each. they filed for chapter 11, they traded for 26 cents. it made household names after previously obscure business executives and made the careers of the team that prosecuted them scott reports how they all got started. >> reporter: december 2nd, 2001, the day of the bankruptcy was a sunday the very next day, 4,000 enron employees were thrown out on the street behind me more than 20,000 had their careers uprooted many lost all their retirement savings. the people at the top lost their dignity. some went to prison. for the man at the very top, it was a sudden and total fall from grace. ken lay was more than just the founder of enron he was a local hero in houston politically connected. many expected he was bound for washington but not like there. >> i'd say you were a carnival barker except that wouldn't be fair to carnival barkers >> reporter: indicted on ten felony count, he said he was shocked when hef was convicted o all of them. >> i believe i'm innocent of the charges against me. >>

a normal business operation those things happen at the universities that would make something like enron look by comparison.. >> it's the way the universities market themselves because if you go to any university in americay they present themselves and you're going to get yourself a world-class education and open up possibilities. when you look at the results is a range of degrees so students are leaving massive amounts of debt and others often promises made that are not delivered on and operating where theyor are just trying to get more money and time out of students spent on campus. by the last century the first world war ii era although you can find traces going back for hundreds of years. there was a continuous cash flow. they came to class late with 250 years later still taking place. the other end of that literature where you start having to ask those questions it wouldn't be the type of career path that we would be looking for. you talk about education classes. if there is about a third of the college experience. with all of these things that you're supposed to take to be a well-r

normal business operation there are things that happen in universities that would make things like enron look ethical by comparison. >> give us an example. >> the first thing is the weight universities and market themselves through students. if you go to any university they have literature they present themselves as you are going to get a world-class education and open up all sorts of possibilities. their promising high and mighty things but every student that comes to their system is going to get. but when you actually look at the results was coming out of the university system it's a range of degrees. some are not worth the money you are paying for. students are leaving with the massive amounts of debt very little in the way of job prospects. there's often a promises made that are simply not delivered on it. you university administrators operating in such a way to try to get more time out of students as opposed to actually delivering an educational product to them. >> this is been a revolving change in your view in higher education in america? >> i think it's something that at least go

he began shorting enron a year before its collapse. we're back in two.pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. the xfinity black friday sales event is happening now on xfinity mobile. now new and existing customers can get our best wireless deal of the year - up to $1,000 in savings - for a limited time only. on the most reliable network nationwide, plus nationwide 5g. act now and save up to $1,000 with xfinity mobile. so you can go all out on gifts for the family - during our best wireless deal of the year... the xfinity black friday sales event. click, call or visit a store today. >>> welcome back i'm rahel solomon and here is our cnbc news update at this hour for almost two hours this morning the supreme court heard a historic arguments on abo

>> my immediate thought is just an operation it makes enron look ethical byik comparison. the first thing is the way universities market themselves to students. if you got any university in america they present themselves as you are going to get a world-class education and open up all sorts of possibilities so they are promising high and mighty things that everything that comes through their system, when you look at the results of system's they range of degrees that are not worth the money you are paying for and seniors are leaving with a massive amount of debt and little in the way of job prospects and their often promises that are made and you see it youtuber see them as traders looking for more money and more time out of students on campusus as opposed to giving an educational product to them. >> is there a change in your view in higher education in america a? >> it goes back to the middle ot the last century as higher ed really expanded pd find traces of theyo going back hundreds of years not even a millennium. we tell the story adam smith compared the inefficiencies a

>> well, my immediate take it, and just an institution, looking at enron in comparison. >> give us an example. >> the way that universities market themselves to america, you go to any university, glossy literature, you're going to get a first class education and high and mighty things that every student is going to get, but when you look at the results of what's coming out of the university system, it's at the range of degrees that many so of them are not worth the money that you're paying for, so students are leaving with a massive amount of debt, but very little in the way of job prospects. there's often promises that i made that simply are not delivered on and rather, start seeing the university administrators operating in a way they're trying to get more money and time out of students spent on campus as opposed to actually delivering an educational product to them. >> and your view on higher education in america? >> i think it's something that at least goes back to the middle of last centuriment so the first world war ii era as expanded, you can find traces of it, going back 100 y

means many families will be forced to choose between food and heating august. dan's prime minister, enron con, says, disaster can still be averted though. going to this, the world does not act. this will be the biggest man, mid crisis, which is unfolding in front of us. we of the oil. see, it's a big responsibility on us because not only is it the situated situation and one is done as it on fours. but it's our religious duty to help them. international charlan, afghanistan was suspended after the taliban took power in august. many people are still desperate to leave the country. hundreds have been killing in freezing temperatures. in kabul after the taliban announced on saturday that it would resume issuing passports. many of them were camped there over night. passport office was opened in october, but a flood of applications caused the facial recognition equipment to break down. earlier he spoke to salaam, algernon b, who's with unicef in afghanistan. is that the situation is getting especially difficult for families who are living in remote areas and a whole generation of children is no

thought as it unfolds, but it's a religious duty to help them live now to as i'm about office here, as enron car come, i'll hide, i'm sorry. is there any major prime minister? come on, tell us more about what this meeting is hoping to achieve. well this is indeed an extraordinary session given the fact that that is the goal where band that make a cross the why and the timing because it was only large months that she did a report for the extra emergency session to take place of the oh, i see, this is up to 40 because in august on another extraordinary session was held in 1980 and the focus on the prime minister dashboard. also, no one has done the share for 40 years, the country been a wall. and even before. busy the dollar bon took power over 50 percent of the people who were living below the poverty line. sure, indeed, that is the contention that merging amongst the muslim country. i see it should not be forgotten. the 2nd largest body after the united nation would 57 nations the budget needs i've invited all the other apartment and 5 member of the united nations security council. the us an

children are expected to suffer acute levels of menu fish and this winter boxed ounce prime minister enron con, told the meeting that disaster can still be averted if lead is act together. now the point is that if the word does not act, this will be the biggest manmade crisis which is unfolding in front of us. we the, oh i see it's a big responsibility on us. because not only is it the situated situation and no one has thought as it unfolds, but it's a religious duty to help them can hide. as much as from islamabad, this is indeed an extraordinary session. given the fact that did the colewell band make across the y and a timing because it was only large money that saudi arabia per board for the extra emergency session to take place of the oh, i see this is after 40 years because the budget on another extraordinary session was held in 1980 and the focus on the prime minister said the dashboard also. no one has done the shared dead for 40 years. the country been at war. and even before the dollar bond power over 50 percent of the people were living below the poverty line. sure, indeed, there

i costanza prime minister enron con, told the meeting that disaster can still be averted if leaders act together. now the point is that if the world does not act, this will be the biggest man made crisis which is unfolding in front of us. we are the oil. see. it's a big responsibility on us. because not only is it the trader situation and of understand as it on form, but it's a religious duty to help them. more from out here has come out hider and islam of that this is indeed an extraordinary session, given the fact that dated the co where band make it cross the y under timing because it will only last month that saudi arabia pro board for this extra emergency session to take place of the oh i see this is after 40 years because in august on another extraordinary session was held in 1980 and august on the prime minister said the dashboard also. no one has done that for 40 years. the country been at war and even before the dollar bond took power over 50 percent of the people were living below the poverty line. sure, indeed that is a content merging amongst the muslim country the i see it

gordon's point, this idea that china is simply too big to fail like a nuclear, you know, equipped enronthis giant corporation with nuclear weapons, essentially, and there's nothing that the united states can do to disentangle itself from it is simply not true. we need to have an agenda like you said, ben, we have to handle this internal domestic problem in the united states and the external threat, really entangled. we have to have a norman rockwell agenda here at home that strengthens the american family and a rockwell b-1 bomber agenda abroad that shows americans' military strength and we need to deter military aggression from the chinese communist party against asia because as soon as they have asian hedge money they can spread it throughout the region. >> gordon and rebecca, thank you so much for joining me tonight. >> coming up, the media finds out that the cdc's guidelines were never about the science and their brains melted down. we will break it down next with douglas murray. ♪ i'm so glad we're finally on vacation. yeah, and kayak made it so easy - searching hundreds of travel

wouldn't bail her out would know are her release around enron were cognizance so you can very much count on the fact that that appeal to the court that argument to the court that she let her out pending the field elements affirmed on appeal. then she'll come back into custody. that is not going to happen. but keep in mind all the time that she's kept in custody now and before trial and up through trial and up to sentencing that all counts for her sentence in jail. and we know that she is also facing waiting trial on perjury charges as well. so that is another whole issue for her that she is facing on top of this conviction. impossible appeal. cardoza ktvu legal analyst. thank you so much for your insight this afternoon. you're welcome. stay healthy and enjoy the new year to you. the jury in the elizabeth holmes case has ended day six of deliberations at the federal courthouse in san jose without a verdict. they will return on monday. for the last two days. the jury has not sent out a note or ask for any clarifications on the law. but yesterday the judge held a 23 minute closed door meeti

you have bitcoin companies namingp stadiums historically a sign of the top let me reminded people of enronhat is usually you believe when the problem has turned. dagen: right. >> to what is going on brings me back to bond market the bond market telling us it is not worried about inflation the bond market all bond traders, they might be wrong, but they might be telling us something about everyone else's worries about inflation, maybe, maybe they are overstated, i don't know if bond market is right or wrong but sending a very clear in as many even as fed is pulling back an its bond pictures yields are very low ethicaling us not worried about inflation that business week -- >> jon market should be worried about maria you brought up a few minutes ago, is this massive tax increase, and you look at what the house passed a few weeks ago a disaster totally disaster for small bifrs "the wall street journal" rortdz we would have highest tax rates maria in the world if we passed anything like what is in that -- that atrocious house bill debate in senate i know markets, say well the republicans are go