Whos to blame for Enron employees losing their savings?
Here’s how some employees told it last month. ROBERT VIGH, ENRON EMPLOYEE: The employees had no choice to ride the stock into the ground. JACKSON: But the truth is more complicated. (on camera): In fact, Enron employees had a choice. They could have sold nearly all the Enron stock in their retirement funds last year at $80 or $70 or $50 or $30. Nothing prevented them. (voice-over): A year ago, 62 percent of Enron’s 401(k) funds were invested in Enron stock, $1.3 billion dollars, way more than investors advisers say is prudent. But 89 percent of the stock had been bought by Enron employees voluntarily with their own salary deductions and could be sold. Only 11 percent had restrictions on being sold because it had been given by Enron as a match to employee contributions. (on camera): Back then, the stock looked like a world beater. January 25th, as it was trading at over $81 dollars, Enron raced its estimate of earnings for the year. But markets took a dimmer view. Enron’s stock price sl
