This week we take you back to one of the biggest bubble bursting in living memory, Enron, which went from Americas 7th largest company to bankrupt within a year at the turn of the millennium. How many booms, busts, frauds and financial irregularities have we witnessed since? Now, 100 episodes in, we get to sit down and LEARN from Andy Fastow, the former CFO of Enron. We’ve wanted this guest on the pod since, well, before the podcast began - buckle up for a conversation about what happened that fateful year, why it's continued to happen since and where and how, not if, the same will happen again.For more on Bubble Trouble, including transcripts of the show, visit us online at http://bubbletroublepodcast.comYou can learn more about Richard at https://www.linkedin.com/in/richard-kramer-16306b2/More on Will Page at: https://pivotaleconomics.com(Times below correspond to the episode without considering any inserted advertisements.)In this 100th episode of Bubble Trouble, hosts Richard Kramer and Will Page discuss the inner workings of business and financial markets, shedding light on their truths via conversations with their guest, former CFO of Enron, Andy Fastow. They discuss the key factors that led to the downfall of Enron, including the exploitation of accounting 'loopholes' and the destructive impact of mark-to-market accounting and how it leads companies into a risk-laden gray area of business. They also cover the issues surrounding operating leases, addressing the ethical debate of 'genius' vs 'evil'. Furthermore, they delve into insightful examples of business mishaps and financial irregularities including the collapse of the Silicon Valley Bank. Fastow expresses his regret and responsibility for Enron's downfall, highlighting the difference between technically following the accounting rules and creating misleading financial impressions of a company.0:00 BT 100 In Conversation with Former Enron CFO Andy Fastow Part One00:02 Introduction00:02 Introduction and Overview of Bubble Trouble00:15 Reflecting on Past Episodes and Topics00:41 Unpacking the Enron Scandal01:23 Part One01:25 Interview with Andy Fastow, Former CFO of Enron08:33 Understanding the Role of Auditors and Attorneys10:59 Exploring the Concept of Loopholes13:46 The Reality of Operating in the Gray Area25:46 The Distinction Between Different Types of Fraud27:19 The Conflict of Interest in Financial Analysis28:53 Part Two28:53 Continuation of Conversation with Andy Fastow30:43 Enron's Acquisition and Financing Strategy31:14 The Use of Operating Leases in Enron32:46 The Legal Hurdles and Creative Solutions35:56 The Impact of Financial Innovation38:11 The Dangers of Mark to Market Accounting41:53 The Role of Incentives in Financial Reporting46:56 The Case of Silicon Valley Bank53:42 The Role of Analysts and Banks in Financial Misrepresentation54:54 Closing Remarks and Preview of Part Two55:31 Credits Hosted on Acast. See acast.com/privacy for more information.