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.

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

To: The Duke of URL© who wrote (1797)	1/30/2002 7:21:17 PM
From: Mephisto	Read Replies (1) \| Respond to of 5185

ML was the underwriter for that special Enron fund: LJM2. I'll post story for you. I don't think I want advice from any of the Wall Street Brokerage firms. The participants in LJM2 received knowledge that was not available to others.

To: The Duke of URL© who wrote (1797)	1/30/2002 7:26:02 PM
From: Mephisto	Respond to of 5185

The records show that investors in LJM2, which set out to raise $200 million and ultimately took in $349 million, were given more information about Enron's financial situation than the company's shareholders. For example, documents sent to potential investors in 2000 revealed that Enron controlled about 50 percent more assets than disclosed in Enron's securities filings. The difference — $34 billion versus $51 billion, as of June 30, 1999 — was the value of assets moved off Enron's books through various partnership deals. The disclosures created conflicts for Wall Street firms, as well. For example, the investment banking arm of Merrill Lynch (news/quote) & Company, which underwrote the LJM2 offering, was aware of the off-balance-sheet figures for Enron; indeed, Merrill's NAME is on the cover page of the offering containing the data. But because the numbers were confidential, that information could not be shared with Merrill brokerage clients who were investing in Enron stock. Joe Cohen, a Merrill spokesman, declined to comment. Excerpt from " Investors Lured to Enron Deals by Inside Data " The New York Times January 25, 2002 By KURT EICHENWALD Full story at:http://www.siliconinvestor.com/readmsg.aspx?msgid=16986845