Final Word from Monday, October 17, 2011

Comparisons of ČEZ to Enron have been made off and onsince 2002, and they will now increase in intensity after MFDreleased documents linking Martin Roman to Škoda/Appian.Both Enron and ČEZ enjoyed rapid growth in their share priceunder their fêted CEOs, both became the most-admired company,both enjoyed wide political protection, both took advantageof the regulatory environment to fuel their growth, andboth relied on bankers and shareholders not to ask too manyquestions. Co-author Bethany McLean of The Smartest Guysin the Room said, "It's really hard to know when Enron firstcrossed the line into outright fraud, but there isn't any doubtabout who the guy was who led them there." (Andrew Fastow)In ČEZ's case, there are dozens of people in government andon ČEZ's boards who are either criminally liable or criminallyincompetent for allowing the fraud to happen. No one expectsČEZ to go bankrupt the way Enron did, but a breakup that allowsforeign or domestic vultures to take over is a possibility.

Glossary of difficult words

off and on - now and then;

feted - honored or entertained lavishly;

breakup - a division of a country, company or organization into smaller autonomous units;

vulture - profiteer, opportunist.

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