<P> The SEC announced it had filed civil fraud complaints against Andersen . A few days later, sources claimed Enron and Dynegy were renegotiating the terms of their arrangement . Dynegy now demanded Enron agree to be bought for $4 billion rather than the previous $8 billion . Observers were reporting difficulties in ascertaining which of Enron's operations, if any, were profitable . Reports described an en masse shift of business to Enron's competitors for the sake of risk exposure reduction . </P> <P> On November 28, 2001, Enron's two worst - possible outcomes came true: Dynegy Inc. unilaterally disengaged from the proposed acquisition of the company, and Enron's credit rating was reduced to junk status . Watson later said "At the end, you couldn't give it (Enron) to me ." The company had very little cash with which to operate, let alone satisfy enormous debts . Its stock price fell to $0.61 at the end of the day's trading . One editorial observer wrote that "Enron is now shorthand for the perfect financial storm ." </P> <P> Systemic consequences were felt, as Enron's creditors and other energy trading companies suffered the loss of several percentage points . Some analysts felt Enron's failure indicated the risks of the post-September 11 economy, and encouraged traders to lock in profits where they could . The question now became how to determine the total exposure of the markets and other traders to Enron's failure . Early calculations estimated $18.7 billion . One adviser stated, "We don't really know who is out there exposed to Enron's credit . I'm telling my clients to prepare for the worst ." </P> <P> Enron was estimated to have about $23 billion in liabilities from both debt outstanding and guaranteed loans . Citigroup and JP Morgan Chase in particular appeared to have significant amounts to lose with Enron's bankruptcy . Additionally, many of Enron's major assets were pledged to lenders in order to secure loans, causing doubt about what, if anything, unsecured creditors and eventually stockholders might receive in bankruptcy proceedings . </P>

Who was enron and what did they do