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Why Did Enron Devise So Many So-Called Special-Purpose Entities (SPEs)

question 19

Essay

Why did Enron devise so many so-called special-purpose entities (SPEs)? What were the consequences of doing so? Why did Enron demonstrate the importance of transparency?


Definitions:

Substrate

A reactant in a chemical reaction upon which enzymes act.

Diene

Organic compounds containing two double bonds, which may participate in various polymerization and other chemical reactions.

Dienophile

A compound with an electron-deficient double or triple bond that readily reacts with a diene in a Diels-Alder reaction.

Major Organic Product

The most abundant product formed in a chemical reaction involving organic compounds, often favored kinetically or thermodynamically.

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