In my first two blogs I wrote about how and why Enron collapsed. In this blog I will talk about a consequence that is often forgotten but had an enormous impact on many lifes: thousands of people lost their job and had worthless Enron stocks.
All the former employees are telling the same story: Enron was a wonderful company to work for. You could earn lots of money, and you could enjoy luxury for free, provided by the company. Enron arranged theatre tickets, taxis if you had to work late, there were fridges full of drinks etc.
In the US, Enron matched the pension contributions with Enron stock. In the UK they matched around 10% of the salaries with shares.
When Enron collapsed, all these stocks lost all their value. During the downfall of stock prices, Enron forced their employees not to sell. This was disastrous for all those employees who had a lot of their money in stocks. Many people lost a lot of their pension savings and of their saving money. This is another dark side of the Enron story.