In 2001, each director of company was extraordinarily compensated. Each executive received $381,000 in total compensation. But later, after Enron scandal, these stakeholders were hurt a lot also. Shareholders and Mutual fund investors lost around $70 billion in market value. Two major banks called J.P. Morgan Chase and Citigroup were the one who faced major write downs on bad loans. Not only did Enron Creditors, shareholders and bondholders lose out, confidence also fell across the market, as investors questioned the integrity of the financial statements of other companies in which they held stock.
Question 2: Considering all aspects of the case, what factor or factors do you believe most contributed to the collapse of Enron? In your answer, please consider both external and internal factors.