Enron Corporation took big loans but disguised them as oil futures contracts. This way, the company did not have to account for these borrowings on its financial statements. Investors and lenders alike were duped into thinking the company was in much better health than it actually was.

Option A is incorrect: Barings Bank was associated with little management oversight of the settlement process.
Option B is incorrect: Continental Illinois is associated with problems in funding liquidity risk.
Option D is incorrect: The Orange County case illustrates how complex financial products characterized by large amounts of leverage can create significant losses; Financial engineering and complex derivatives.