This guy is half right...the SEC's "probe" into Enron will be VERY quick!
cbs.marketwatch.com
SEC's Pitt addresses Enron concerns
By Leticia Williams, CBS.MarketWatch.com
Last Update: 7:02 PM ET Nov. 29, 2001
WASHINGTON (CBS.MW) -- In his first speech to consumers since taking the Securities and Exchange Commission reins, Chairman Harvey Pitt sought to assure investors about the agency's probe into calamitous Enron Corp.
"You can be sure that we will investigate thoroughly, but quickly, and if wrongdoing occurred make sure that the people who are responsible ... answer to it," Pitt said after his speech at the Consumer Federation of America's financial services conference.
"One of the things that we are looking at is whether the accounting principles that apply were applied appropriately and if so what, if any, circumstances may need changing at the end of this, " he said.
The SEC chief also said one of the issues raised by Enron's (ENE: news, chart, profile) predicament was the extent to which corporations disclose information to their shareholders. Enron has been criticized for keeping debt off its balance sheet by using limited partnerships, some of which were profitable to company officers.
Investors flee as does Dynegy
Meanwhile, Enron's shares ground to penny-stock status Wednesday after Dynegy canceled its plans to acquire the debt-laden company at a discount, followed by a free-fall Thursday amid doubts on Wall Street that the company will continue as a going concern.
Enron shares closed Thursday at 36 cents, down 25 cents, or 41 percent Thursday, after dropping more than 85 percent Wednesday after Dynegy said it had called off its merger with Enron.
Dynegy Corp. on Wednesday abandoned its plan to rescue Enron Corp. after Enron's credit ratings were cut to junk-bond status, raising the prospects of a bankruptcy filing for what was once the largest U.S. energy trader. See full story.
The collapse of the deal sets the stage for Enron to either be rescued by its bank lenders or to file for Chapter 11 bankruptcy protection, which would allow it to continue operations while it sells off its assets. Analysts said confusion about the size and scope of Enron's problems, particularly in regard to its derivative operations, make it difficult to determine whether the company is better off being sold or filing for protection.
About the only thing that is known for certain is that at the conclusion of this sham of an "investigation", Ken "Frito" Lay will not be found to be guilty of anything at all. It's as sure as the sunrise!<NFG> |
