At the board meeting,

the auditors told Lay that Borget and his traders

were manipulating earnings destroying daily trading records,

and probably gambling way beyond their limits.

The next day we found out that

Lay's decision was to basically change nothing

as far as the operation's concerned.

And the reason he gave was that this was

the only part of the combined company

that was making any money and that he could not,

you know, kill the golden goose.

The traders weren't fired, or even disciplined.

Instead, Enron sent a telex to Borget:

Please keep making us millions.

Instead of reducing Enron's risk,

Lay encouraged his traders to gamble more.

But then their luck changed.

Two months later,

here I got this panic call that they had

drawn down 90 million dollars in the previous five days.