By this time in 2001, Enron was begining the fatal descent from which it would never recover. The stock price had begun its final decline. This was fatal to Enron because Andy Fastow had set up his partnerships to depend on the price of Enron’s stock (Enron’s stock was, literally, its bond). In May, the stock price dropped to $59.78, fulfilling the criteria for the company to repay $2.4 billion to investors in Osprey. June unfolded with Jeff Skilling making his Titanic joke in Nevada, then being hit in the face with a pie on a business trip in San Francisco. On July 23, Enron’s stock price closed below $47, a critical point for the Raptors. On July 31, 2001, Enron’s stock price closed at 45.35.
Adding hardship to the company, the Wall Street Journal published critical reports about the oil giant every day from May until it collapsed in December. LJM’s partnership with Enron had come under close scrutiny, and it was on this day that Andy Fastow stepped down as manager of the LJM general partnership. He sold all his financial interests and no longer had any management responsibilities for those entities.
But it was too late for Fastow, and it was too late for Enron. Enron would struggle valiantly. It would do everything right. And it would still collapse – in mere months.