Fastow's approach to hiding losses was so effective that the year before Enron declared bankruptcy, the Enron stock was at an all-time high of $90. As it turned out, the company was already well on its way to financial collapse, to the point that it was all but forced to seek a merger with rival Dynegy. By then, Enron's financial picture had declined so rapidly that the prospect of the Dynegy merger was the only thing keeping it alive. Dynegy tore up the merger agreement on November 28 in part due to the liquidity problems revealed after Fastow's ouster, and Enron declared bankruptcy three days later. By then, Enron's stock had dwindled to 40 cents per share, but not before many employees had been told to invest their retirement savings in Enron stock.
Fastow's approach to hiding losses was so effective that the year before Enron declared bankruptcy the Enron stock was at an all-time high of $90 As it turned out the company was already well on its way to financial collapse to the point that it was all but forced to seek a merger with rival Dynegy By then Enron's financial picture had declined so rapidly that the prospect of the Dynegy merger was the only thing keeping it alive Dynegy tore up the merger agreement on November 28 in part due to the liquidity problems revealed after Fastow's ouster and Enron declared bankruptcy three days later By then Enron's stock had dwindled to 40 cents per share but not before many employees had been told to invest their retirement savings in Enron stock