What Are Special Purpose Entities?
How did Enron create off the book transactions and partnerships designed to remove debt from the company's balance sheet? How do these SPE partnerships work? How are they valuated and how did their creation eventually lead to the downfall of Enron? Larry Mantle explores Enron's world of corporate finance and their use of SPEs with Randy Beatty, Dean of USC's Leventhal School of Accounting at the Marshall School of Business.