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Non-Tech : The ENRON Scandal -- Ignore unavailable to you. Want to Upgrade?

To: Karen Lawrence who wrote (54)	1/11/2002 1:32:56 AM
From: Karen Lawrence	Respond to of 5185

HOUSTON (Dow Jones)--Enron Corp. (ENE) said the auction of its wholesale trading operation is proceeding as scheduled, with talks continuing into the night. The company said it "hopes" to have a conclusion Friday morning. In a press release Thursday, the energy concern has been negotiated with the parties since the sealed bids were received on Monday. Among the bidders are two banks, Citigroup Inc. (C) and UBS AG (UBS), and London oil company, BP PLC (BP). Enron will announce the results of the auction, which includes participation from its creditors' committee, when it plans to make a recommendation to the bankruptcy court. The company's advisers and creditors consider it a priority to try to get the energy-trading business, which still has a staff of about 1,000 people, up and running again. The advisers are trying to find a creditworthy partner that will take a 51% stake in the trading unit. The auction update followed a harried day of Enron news coming from the White House and Justice Department. Earlier Thursday, President Bush called for a government review of the Enron debacle, while news unfolded about the company's top executive having lobbied two cabinet secretaries for help when the energy company was nearing bankruptcy court. Also, Attorney General John Ashcroft announced he had recused himself from the Justice Department's investigation of Enron, citing a conflict of interest. The company's stock closed down another 15.2%, or 12 cents, at 67 cents, on the Big Board. Maria P. Vallejo; Dow Jones Newswires; 201-938-5400 (END) DOW JONES NEWS 01-10-02

To: Karen Lawrence who wrote (54)	1/13/2002 12:17:53 AM
From: Mephisto	Respond to of 5185

"The solutions are as obvious as they are unlikely to be met. The rule of thumb must be transparency, in word as well as deed. On a technical level, accounting rules and disclosure requirements have to be tightened up. Off-balance-sheet entities that create even the slightest contingent liabilities should be incorporated into the company's publicly filed financial information. We must also move to a system of real-time financial disclosures, with online access to the latest financial information. This is what SEC policymakers and congressional investigators should concentrate on." ........................................................................................................................................... If people lose faith in the stock markets they could pull their money out of the markets which would mean that ENRON could be a blimp on the economy. Maybe?