Enron Faces Bankruptcy After Merger Nixed

In addition to the potential ripple effect in markets, Enron's collapse will have a huge effect on its employees, especially those whose 401(k) plans were heavily invested in Enron stock.

Andre Meade, analyst at Commerzbank Securities in New York, said this is likely to be the case.

Still, as Meade noted, "It looks good to have Enron on your resume, and there are a lot of competitors in Houston." Thus employees may be well-positioned to find new positions, even in a tough job market.

Other players that would be hurt by Enron's demise are companies with net receivables from Enron — essentially, those that buy in trade with Enron. These players will face delays, and according to the numbers that Meade has seen so far, they aren't too big.

Meade did stress that Enron has not made a lot of its financial data public and there could be possibly be a lot of key information yet to be revealed.

Chairman Gave Up Compensation Package

Earlier this month, Enron Chairman Kenneth Lay announced he would forgo a $60.6 million compensation package he would have been owed if the company had merged with Dynegy.

Lay made the move after Enron employees complained about the deal — which was part of his contract, which runs through 2005. That contract called for him to get $20.2 million for each year left on the contract.

Lay is a Republican and a close friend of both President Bush and his father, former President George Bush. That didn't stop him from advising the Clinton administration on energy issues, however.

Lay was on Bush's short list for Treasury Secretary for the current administration.

According to the Center for Responsive Politics in Washington, Lay and Enron spent $2.1 million lobbying Congress last year. As recently as Oct. 16, Enron gave $60,000 to the Republican National Committee.

ABCNEWS' Naureen Malik contributed to this report.

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