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

To: Mephisto who wrote (1280)	1/26/2002 10:51:35 PM
From: Raymond Duray	Read Replies (1) \| Respond to of 5185

Mephisto, Re: I wonder why the FBI didn't confiscate Enron's records as soon as they knew there was trouble. I think it is important to keep the timeline in mind. The obvious nature of the illegality of Enron and Arthur Anderson is something that has actually only recently been verified to the point that there can no longer be any doubt as to the intention of Enron to obstruct justice. Which is not to say that anyone with a half a brain knew that this was hugely problematic last fall. I recall commenting on the shredding of documents on the Enron thread here at SI as early as mid-October, shortly after the restatement of shareholder equity. Prior to that, we jokingly talked about shredding documents on the California Energy Crisis thread last April, in the days following California AG Bill Lockyer's pronouncement that he wanted to provide state-supplied housing for Ken Lay, with a special cellmate to make up for the loss of Linda Lay's company. We knew they were shredding back then. Cause they had too much incriminating evidence of gaming the California electricity market. Why was the FBI so slow to react? Quite simply because they always are in the pursuit of white collar crime. You don't think for a second that John Ashcroft actually wants to "catch" Ken Lay, do you? Heaven, no. Everyone wants to avoid the embarassment as much as possible. Re: Certainly, many folks around Bush knew there was trouble. As co-conspirators, they not only knew there was trouble, they were hoping to create it. Re: They must have made a fortune on stock options!!! You will recall that we have never learned who actually profitted from the puts on the airlines, bets placed prior to 9/11. There was a whitewash announcement that most of the puts were kept in place rather than being cashed out as of mid-October. The authorities hoodwinked us, the general public, as to who was actually involved and who profited. There is no reason to suspect that we as the general public will ever get any information as to which insiders might have ridden the gravy train to those in the know that ENE was imploding. The authorities only take enforcement actions when pissant players are involved, for the most part. It would be a hoot to see if JPM was scrambling in the options markets on ENE in order to cover the losses they've announced that they've suffered on their Mahonia subsidiary. I am certain we only get selective disclosure from JPM, and while it suits their interests to say they've lost money in Mahonia, just as George Bush's poor mother-in-law has lost money on ENE stock, that we simply won't be told about ways these losses are made up, or of other trades that don't pass the smell test. This loss-making confessional of the past week has been a real laugh riot and a hypocritical sham. But, the sanctimonious won't be detered. They'll just keep trying to sell this palaver to anyone gullible enough to believe it is the whole story. -Ray