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To: RR who wrote (46395)1/14/2002 11:57:33 PM
From: stockman_scott  Read Replies (1) | Respond to of 65232
 
How will Ken Lay be remembered..?

<<...In 1992 India & Enron began to build an electric plant known as Dhobal Power Company. By 1995 they had so screwed up relations with India that the Clinton administration was forced to try to smooth feelings to prevent the collapse of all India/U.S. trade negotiations. By 1998, villagers protesting pollution and water use at the Enron plant were beaten by police and Enron security staff. Enron is the only company (as opposed to Government) to be the subject of an Amnesty International report...>>

washington-report.org

_____________________

I feel that Ken Lay may be viewed as 'the Ivan Boesky of Corporate America'...I believe he was SO FOCUSSED on making money and increasing his power that he forgot about what was really important in this world. While he's been captain of the Enron supertanker A LOT of unfortunate things have happened to a wide range of stakeholders. If its proven that he's guilty of insider trading and/or intent to commit fraud then I feel he should be forced to pay back ALL OF THE MONEY HE RECEIVED FROM HIS ILLEGAL STOCK OPTION TRANSACTIONS (north of $100 Million)...If he doesn't have the money available then he should be forced to liquidate the majority of his assets....On top of that he should go to prison for a long time so that he can think about what he's really done...Who knows, he might even be joined by Enron's former President and CFO...=)



To: RR who wrote (46395)1/15/2002 4:38:03 AM
From: stockman_scott  Respond to of 65232
 
What are the major Internet law and policy issues that are likely to crop up in 2002?...

nytimes.com.

Larry Lessig Professor, Stanford Law School
Microsoft and Disney will become the most important allies in defending the core values of the Internet.

Cass Sunstein Professor, University of Chicago Law School
It's hard to predict the future. But let's look closely at (a) efforts to use to Internet to track terrorism and other crimes, (b) the possible diminution of privacy rights, and (c) efforts to censor apparently dangerous speech on the Internet.

Ivan Fong Senior Counsel, E-Commerce and Information Technology, General Electric
1. The USA Patriot Act [the anti-terrorism measure that, among other things, includes new rules about the government's access to information on the Internet] will largely survive constitutional challenges in the courts.
2. The Supreme Court will strike down, on First Amendment grounds, those portions of the Child Pornography Prevention Act that effectively criminalize the generation of digital images of fictitious children engaged in imaginary but explicit sexual conduct. The high court will urge Congress to draft a narrower prohibition.
3. Congress will pass legislation to encourage companies to share cyber-security data with the government, by exempting such data from disclosure under the Freedom of Information Act and by providing antitrust protection for companies that collaborate on cyber-security matters.

James Boyle Professor, Duke University Law School
The year 2002 will see the first real chance for the Supreme Court to signal, through its consideration of a number of cert petitions, what kind of constitutional restraints, if any, it will impose on the new expansions of intellectual property law: the range wars of the Internet.

While the most dangerous of these expansions -- the so-called database bill that gives property rights over unoriginal compilations of facts -- has not yet become law, there will be continued and intense pressure to pass it, with equally strong resistance from the science, research and civil liberties communities. If the Supreme Court signals some willingness to apply the First Amendment to intellectual property rules in a serious way, or to take seriously the restrictions of the Constitution's intellectual property clause, then the database bill will be in trouble. As a result it may be drafted in a less sweeping way. The converse is also true. Dismissive treatment from the Supreme Court will merely embolden the proponents of maximalist intellectual property protection. And in the long run, it is the property rules that will shape the Internet's future more thoroughly than the rules on censorship or filtering or taxation.

Dan L. Burk Professor, University of Minnesota Law School
First, I expect to see increasingly sophisticated attacks against the constitutionality of the Digital Millennium Copyright Act's anti-circumvention provisions [which prohibit the use of, or trafficking in, a computer code the circumvents the encryption scheme protecting certain digital content]. The courts in 2001 addressed some First Amendment issues, but ducked the really hard question: whether Congress in passing the DMCA exceeded the constitutional power given to it under the Intellectual Property clause. The Supreme Court has held that Congress' power under the IP clause is limited -- copyright cannot be extended to unoriginal or factual works, and patents cannot be extended to obvious inventions. But the DMCA's anti-circumvention rules make no differentiation between protectable and unprotectable material. This exceeds Congress' power under the IP clause.

I expect to see lawsuits filed during the next year that put that question front and center, and since it is the kind of question that the Supreme Court has shown an interest in, I would expect that the Court would like to take that kind of case.

Second, and perhaps ultimately more important to Internet law, will be the resolution to the negotiations on the Hague Convention on Jurisdiction and Foreign Judgments. This is a treaty negotiation that has been going on for several years; during 2000 and 2001 it became clear that it is likely to shape the future of international e-commerce. The treaty deals with transborder enforcement of legal judgments. U.S. businesses initially pushed for this treaty, hoping to get more of their judgments enforced abroad, but apparently forgetting that it would work both ways judgments obtained in other countries could be enforced here. This has broad implications for, among other things, intellectual property, defamation, and the kind of situation Yahoo! got into regarding Nazi memorabilia in France.

David Post Professor, Temple University Law School
Predictions are too difficult . . . though I think you can bet on the following headline: "Music Iindustry Fails in Attempts to Get Users to Patronize Sponsored Music Services."

Barry Steinhardt American Civil Liberties Union
1. The upcoming decision of the U.S. Supreme Court in ACLU v. Ashcroft, which challenges the constitutionality of the Children's Online Protection Act -- Congress's second attempt to restrict all speech on the Internet to only that which is suitable for minors. The decision may test whether Internet speech continues to enjoy the highest constitutional protection.
2. The inevitable abuses of the free speech and privacy rights of law-abiding Americans under the USA Patriot Act. These abuses will occur under a cloak of national security and it will be years before they come to light.
3. The trial before a special U.S. Court in Philadelphia, which will test the constitutionality of the Children's Internet Protection Act, which forces libraries to install crude Internet filtering programs that will block lawful and valuable speech from their patrons -- children and adults alike.

Marc Rotenberg Executive Director, Electronic Privacy Information Center
1. The Hague Convention on Jurisdiction and Foreign Judgments will grind to a halt. The already beleaguered effort to establish international rules for enforcement of private judgments still faces strong opposition from ISPs and consumer groups.
2. Consumer groups pressed the Federal Trade Commission in 2001 to look closely at the privacy and security implications of Microsoft's Passport -- a universal log-on service. Now that the Department of Justice's "Let-Us-Trust" Division has taken a pass on the long-running lawsuit and the private litigants seem ready to settle, the focus could quickly shift back to the FTC. Will the FTC act?
3. The copyright industry was on a roll in the past year, knocking out Napster and defending the Digital Millennium Copyright Act. Now the question is whether consumers are ready for digital products that track users, report to manufacturers and shut down when licenses expire.

Jack Balkin Professor, Yale Law School
Certainly one of the most important developments this year will be the continuing struggle between free speech and intellectual property in the courts. Civil libertarians will try to push for recognized First Amendment defenses against copyright and paracopyright. At the same time, businesses will continue to try to invoke the First Amendment as a defense against government regulation of the telecom industry.

Although these two trends both invoke the First Amendment, they actually represent very different philosophies and, indeed, mutually opposed visions of what free speech is all about.

Jessica Litman Professor, Wayne State University Law School
Some things I'll be watching in 2002: (1) What sorts of Internet privacy measures, those to enhance and those to diminish or prevent privacy and anonymity, will be acceptable in the wake of the September 11 terrorist attacks, and what will fly under the radar using prevention of terrorism as an excuse? (2) Whether a variety of government and business initiatives to respond to threats of cyber-terrorism will advance or undermine the adoption of open source software as an alternative to popular and currently vulnerable commercial computer programs.



To: RR who wrote (46395)1/15/2002 10:20:29 AM
From: stockman_scott  Respond to of 65232
 
7:23AM NVIDIA Corp (NVDA) 59.76: A number of firms are positive on NVDA: Morgan Stanley says the co shows excellent execution and is seeing strong demand across all product lines, and should see strong growth from new products in 2003-04; raises 2002-03 ests and raises price target to $90 from $70. Prudential believes that MSFT's rumored "HomeStation" Xbox/PC/set-top convergence product is real, and should be a significant opportunity for NVDA.



To: RR who wrote (46395)1/15/2002 11:36:02 AM
From: stockman_scott  Respond to of 65232
 
The Worst Thing About Enron: Checks and Balances Failed

By Allan Sloan
Tuesday, January 15, 2002; Page E01
The Washington Post

Enron was supposed to be the next new thing, a new-economy company with substance to it.

Unlike flaky Internet start-ups that substituted ethereal yardsticks such as "eyeballs" and "stickiness" for revenue and profits, Enron had real businesses, real assets, real revenue and what seemed to be real profits. It owned natural gas pipelines and electric generating plants and water companies.

Not only would it do well, it would improve the planet by substituting the efficient hand of the market for the clumsy hand of government regulation. And it seemed to work. From humble beginnings as a natural gas company, Enron rose in a mere 15 years to No. 7 on the Fortune 500 list, doing $100 billion of business in 2000. Along the way, Enron became one of America's most admired companies and a perennial favorite on best-places-to-work lists.

But Enron turned out to be another bubble. Unlike a Pets.com or a Webvan, whose implosions did little damage outside of costing dice-rolling speculators some money and techies some jobs, the Enron bubble exploded like a grenade. Today, Enron is a smoking ruin, the biggest corporate bankruptcy filing in American history.

A year ago, the stock market valued Enron at more than $60 billion. Its stock has since lost 99 percent of its value -- and still seems overpriced. Stockholders and lenders are out tens of billions of dollars. Many of Enron's 20,000 employees lost their retirement savings when the company collapsed. About 5,000 of them, from computer jocks in Houston to newsprint recyclers in New Jersey, lost their jobs, too.

By contrast, Chairman Ken Lay made $205 million in stock-option profits in the past four years alone, and other big hitters and board members made out, too. What's especially galling is that a handful of executives and outsiders made millions by investing in off-balance-sheet deals with Enron that played a large role in destroying the company.

The collateral damage keeps spreading. Prominent among the wounded is Arthur Andersen, Enron's outside auditing firm, which disclosed last week that some employees destroyed documents. Andersen's reputation has been tarnished to the point that the Big Five accounting firms might shrink to the Big Four. Wall Street's credibility has been shattered. Utilities deregulation, for which Enron was the model, is now on the back burner.

The spectacle of impoverished, unemployed Enron workers has thrown a harsh spotlight on the risks of 401(k) accounts stuffed with company stock. Confidence in financial markets has been shaken -- and rightly so. With the action in Afghanistan slowing down, Enron shock waves have finally reached Washington, raising the specter of another 'Gate.

Life would be simple if we could blame the whole thing on Enron Chairman Lay. Or on George W. Bush, who goes way back with Lay, the biggest individual contributor to Bush's presidential and Texas gubernatorial campaigns. But Enron isn't that simple. It's something far more scary: a wholesale systemic failure.

The multi-layered system of checks and balances that is supposed to keep a company from running amok completely broke down. Executives of public companies have legal and moral responsibilities to produce honest books and records -- but at Enron, they didn't do that. Outside auditors are supposed to make sure that a company's financial reports not only meet the letter of accounting rules but also give investors and lenders a fair and accurate picture of what's going on -- but Arthur Andersen failed that test. To protect themselves, lenders are supposed to make sure borrowers are creditworthy -- but Enron's lenders were as clueless as everyone else. Wall Street analysts are supposed to dig through company numbers to divine what's really happening -- but almost none of them managed to do that. Regulators didn't regulate. Enron's board of directors didn't direct.

Why did all these people look the other way for so long? Money talks. Or, with Enron, shouts. The company put lots of money in the pockets of people and institutions who were supposed to police it. Enron's incessant dealmaking generated huge fees for Wall Street investment-banking houses. And guess what: Wall Street loved Enron, with most analysts rating its stock and bonds as the greatest thing since money was invented, at least until they finally heard Enron's death rattle.

Enron paid huge fees -- $52 million in 2000 -- to Arthur Andersen for auditing and consulting services. Andersen allowed it to get away with accounting that was at best aggressive and at worst criminal. If Andersen had stood on principle, Enron would doubtless have changed accountants.

Enron famously made heavy political contributions. Pols got peanuts compared with what Wall Street and Andersen got, but it was enough to help Enron run over regulators at both the national and state levels.

The Enron fallout promises to be severe and far-reaching. With a criminal investigation underway, some of the Enron players face the possibility of spending time in the Big House. The only questions about Arthur Andersen is how much the partners will have to pay to settle this mess and whether the company can survive as an independent entity. The accounting profession is wishing it were again faceless and colorless, instead of being in the harsh spotlight. Financial conglomerates such as J.P. Morgan Chase and Citigroup are going to be scrutinized over their multiple and often conflicting roles at Enron: lenders, trading partners, investors, advisers, investment bankers.

The bottom line: Enron wanted to change the world. It did. But not quite the way that it had in mind.
______________________________________________________
Keith Naughton, Kevin Peraino, Temma Ehrenfeld and Donna Foote in Los Angeles and Jamie Reno in San Diego contributed to this report for Newsweek.

Sloan is Newsweek's Wall Street correspondent. His e-mail address is sloan@panix.com.

© 2002 The Washington Post Company



To: RR who wrote (46395)1/15/2002 9:28:29 PM
From: stockman_scott  Read Replies (1) | Respond to of 65232
 
A Quote For The Day...

"Man's mind stretched to a new idea never goes back to its original dimensions."

-Oliver Wendell Holmes