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Issue:

Business

 

Written by:

Curtis F

 

Date added:

November 9, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

9 / 2435

 

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8355 times

 

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McKinsey & Co. was hired by then CEO, Kenneth Lay, to assist the business. Jeffrey Skilling was sent by McKinsey to assist Enron. This is when he developed the idea of creating a gas bank : Enron would buy gas from a network of suppliers and sell it to a network of consumers, contractually guaranteeing both the supply and the price, charging fees for the transactions and assuming the associated risk ...
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The company would inter- mediate between short-tern and long-term buyers and sellers of natural gas. To guarantee the supply Enron provided financing to third party oil and gas producers . The concept of the "gas bank" was a huge success. Kenneth Lay was very impressed by Mr. Skilling and later hired him to run a division called Enron finance corp...
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