David Rosenthal: belief

Transcript context

…Oh, my god. What a merry go round. Ken backed his collateral for that cash that he ended up repaying the loans to Enron with, was the Enron stock that he originally had taken the margin loans against. He got the cash out of Enron, used it to repay the loans that he had gotten the money from the banks, and then the repayment mechanism of all this is Ken's equity goes back to the company, so nowhere do sales show up. Nowhere does it show up to any publicly available information that Ken Lay is selling his Enron shares. It just looks like there's anti dilution happening at the company, the company's repurchasing shares. I think you could make an argument that this is all circumstantial, that this is a totally nefarious way to get money out without alerting the market that the chairman is selling. I think you nailed it. I think there's another thing that's in The Smartest Guys in the Room, where they reference the fact that I don't think for his particular sales, they classified under some weird thing where they didn't have to disclose it till after the fiscal year rather than in quarter, so he was able to sell an enormous amount before having to report it.…

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