More Enron fallout. (Investments & Finance).DID your pension or mutual fund own Enron Corp.? If so, will your retirement fund suffer? Enron, the largest corporate bankruptcy in U.S. history, is the Freddy Kreuger of corporate scandals A corporate scandal is a scandal involving allegations of unethical behavior by people acting within or on behalf of a corporation. A corporate scandal sometimes involves accounting fraud of some sort. . Just when you think the worst is over, it resurfaces like the horror-flick villain VILLAIN., An epithet used to cast contempt and contumely on the person to whom it is applied. 2. To call a man a villain in a letter written to a third person, will entitle him to an action without proof of special damages. 1 Bos. & Pull. 331. in another pension fund, brokerage house or mutual fund. Some 255 stock mutual funds owned shares of the Houston-based energy-trading company as of Sept. 30, representing $2.2 billion in assets, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. recent figures from Morningstar Inc., an independent investment research firm. "A lot of great investors made mistakes, but we still had to do our homework," said Charlie Ober, who manages the T. Rowe Price T. Rowe Price (NASDAQ: TROW) is an independent global investment management firm and mutual fund manager based in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.. T. New Era Fund. Ober bought and sold a 0.5 percent Enron stake in his fund in late 2001 hoping for a rebound, while avoiding the stock at its peak. Why did all of these major funds invest in Enron? They had the finest investment minds available to dissect dissect /dis·sect/ (di-sekt´) (di-sekt´) 1. to cut apart, or separate. 2. to expose structures of a cadaver for anatomical study. dis·sect v. balance sheets. Unfortunately, they had the same barbecued bar·be·cue n. 1. A grill, pit, or outdoor fireplace for roasting meat. 2. a. A whole animal carcass or section thereof roasted or broiled over an open fire or on a spit. b. audited financial statements everyone else did. Retail mutual funds also had stakes in Enron. According to Bloomberg data, the largest holders of Enron shares as of Sept 30 were Alliance Capital Management Holding LP; Janus Capital Corp., a unit of Stilwell Financial Inc.; and Putnam Investment Management Inc., which is owned by Marsh & McLennan Cos. All told, mutual fund companies held more than 151 million Enron shares. Were they totally in the dark about Enron as well, and how much did those funds gain or lose from their Enron holdings? No full accounting of funds' Enron losses has been made public, and the fund companies won't give detailed fund-by-fund breakdowns of Enron losses. Some money managers had direct connections with Enron. Frank Savage, who was a member of Enron's board, also was a managing director for Alliance, the Florida State Board's investment adviser. Alliance advised the Florida board to buy Enron between Oct. 19 and Nov. 16 - after Enron said it had overstated o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o its profits over four years and the U.S. Securities and Exchange Commission announced a probe, according to the class-action complaint Florida fired Alliance in December. If your 401(k) or pension fund held Enron, don't let your retirement fund managers off the hook. Ask them how long will it take to recover their Enron losses. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , ask how your money managers plan to help change the system to make it more honest. |
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