Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Petrol who wrote (144881)	1/19/2002 11:25:59 PM
From: Petrol	Respond to of 436258

observer.co.uk Enron's new $5bn black hole Investigators extend probe to key firm at heart of energy giant's 3,000 subsidiaries The Bush files - Observer special Jamie Doward, deputy business editor Sunday January 20, 2002 The Observer Investigators probing the accounts of collapsed energy giant Enron are examining what happened to more than $5 billion in loans and investments the company made to subsidiaries kept off its balance sheet. The scale of the black hole opening up looks as if it could dwarf previous estimates. Investigators are already examining a series of unde clared transactions between the US company and two Cayman Islands firms - LJM1 and LJM2 - set up by the firm's former chief financial officer, Andrew Fastow. Now it has emerged that by 31 December 2000 Enron had also invested, or loaned, $5.3bn to a number of companies in which it had stakes, according to papers filed with the US Securities and Exchange Commission. These included two ailing firms that had been harming their par ent's financial performance, water specialist Azurix and the Dabhol Power Company of India. The subsidiaries - part of a network of more than 3,000 firms linked to Enron - were claimed by the company to be 'unconsolidated affiliates', which do not have to be shown on balance sheets. Fastow's activities have already forced Enron to restate its accounts so that they show a $1.2bn reduction in shareholders' equity. And a special committee Enron established has concluded that further black holes may be found. Now investigators are believed to be turning their attention to one key 'unconsolidated' subsidiary, WhiteWing Associates, which itself has 75 subsidiaries. WhiteWing crops up throughout Enron's SEC filings. In 2000 and 1999, respectively, Enron sold '$632 million and $192m of investments and other assets to WhiteWing', the papers say. Enron refuses to discuss WhiteWing, which in turn was involved in several transactions with LJM1 and LJM2. WhiteWing lists an investment vehicle, Osprey Trust, as a limited partner. The trust is owned by a number of anonymous financial institutions - which suggests the investigators will have to cast their net far wider to understand the true complexities behind Enron's downfall. Enron news 20.01.2002: Enron spotlight falls on Cheney 20.01.2002: Enron's new $5bn black hole 20.01.2002: Big Five quake as Andersen faces doomsday scenario Special report: Enron The Bush Presidency The Bush files: Observer special Special report: George Bush's America The one-year verdict 20.01.2002: Christopher Hitchens: how Bush got it right 20.01.2002: Leader: Real friends dare to tell the truth Enron comment 13.01.2002: Will Hutton: Greed is the creed 20.01.2002: Nick Cohen: Britain's Enron-Andersen links Bush Presidency: key moments 13.01.2002: Enron scandal: the threat to Bush 23.09.2001: The making of the President 16.09.2001: Bush's New York visit does little to mollify his critics 17.06.2001: Bush embraces Putin 27.05.2001: How one man put Bush on the ropes 01.04.2001: Global warming: Bush defies world fury 21.01.2001: Bush's hard men sweep away the Clinton legacy 21.01.2001: President Bush pledges civility and compassion 21.01.2001: Leader: Dubya is not to be trusted