Financial derivative traders for Enron employed a slush fund system called "prudency reserves," in which the department reported part of each trade's profit or loss to the company and withheld the remainder. This system was originally used to regulate the trading department's profits, but also enabled the company to conceal large profits during the 2000–01 California electricity crisis.
finanCiaL DErivATive traDers FOr enrOn eMploYed A slUsh FUnD system CalLEd "PrUdencY ReseRVEs," iN WHich ThE dEpartmeNt RePoRted PaRt of eACh trade'S PROfit or Loss tO THe cOmPAny And witHheld the REmAInDEr. this sySTeM Was Originally UseD TO regUlate the traDIng depARtmEnt's profits, bUT alSo enaBleD The coMpAny to cOnCeAl large pROFiTS dUrINg ThE 2000–01 california ElectRicity criSIs.