Enron: The Smartest Guys in the Room (2005)
Enron: The Smartest Guys in the Room is a gripping 2005 American documentary film that delves into the rise and fall of the infamous Enron Corporation. Based on the best-selling 2003 book by Fortune reporters Bethany McLean and Peter Elkind, the film is a searing exposé of corporate greed, deception, and the catastrophic consequences that followed.
The documentary begins by introducing Kenneth Lay, the founder of Enron in 1985. Initially hailed as a visionary, Lay’s company soon becomes embroiled in scandal. Two traders within Enron start making suspicious bets on the oil markets, consistently raking in profits. Meanwhile, one of these traders, Louis Borget, diverts company funds to offshore accounts. Auditors uncover their schemes, but Lay encourages them to continue, prioritizing profits over ethics.
However, the traders’ reckless gambling nearly bankrupts Enron. The timely intervention of executive Mike Muckleroy saves the company from disaster. Lay then hires Jeffrey Skilling, who champions a controversial accounting method called mark-to-market. This approach allows Enron to record potential profits immediately after signing contracts, regardless of actual earnings. The result? Enron appears profitable on paper, even when it’s not.
As Enron’s financial web grows more intricate, the company’s executives manipulate energy markets, engage in fraudulent practices, and deceive investors. The film meticulously chronicles Enron’s meteoric rise and its subsequent nosedive into bankruptcy. The collapse triggers criminal trials for top executives, including Skilling and Andrew Fastow. The Enron scandal reverberates through the financial world, leading to the demise of accounting giant Arthur Andersen.
The documentary doesn’t shy away from examining Enron’s impact on ordinary lives. Thousands of employees lose their life savings, while investors are left reeling. The film also highlights the involvement of Enron traders in the 2000-01 California electricity crisis, a dark chapter in the state’s history.
Through archival footage and interviews with key players—such as McLean, Elkind, former Enron executives, stock analysts, reporters, and even former California Governor Gray Davis—the documentary paints a vivid picture of corporate excess, hubris, and betrayal. It’s a cautionary tale about the dangers of unchecked ambition and the devastating fallout when ethics take a back seat to profit.
Enron: The Smartest Guys in the Room received critical acclaim, winning the Best Documentary Feature award at the 21st Independent Spirit Awards and the Best Documentary Screenplay award at the 58th Writers Guild of America Awards. Although it was nominated for an Academy Award, its impact extends far beyond accolades—it serves as a stark reminder of the perils inherent in corporate greed and the need for transparency and accountability in business.
