we began to make money.

And that in and of itself,

was a re-affirmation that this could be big.

Skilling saw the opportunity to build an industry new

and to start a business from scratch.

But he had one specific condition

that had to be met before he'd join Enron,

and it was that he be allowed to use

a certain kind of accounting known as mark-to-market.

Arthur Andersen signed off, and the SEC approved it.

I remember walking in and going 'What's going on? '

And Causey and everybody,

I mean every one was so excited and then came the champagne

and We had got Mark-to-market accounting treatment.

And I often think about how clear my memory was about that event.

And that was the beginning of a major cog

of the downfall ultimately of Enron.

Mark-to-market accounting allowed Enron

to book potential future profits

on the very day a deal was signed.