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To: John Koligman who wrote (168695)	2/6/2002 8:25:21 PM
From: stockman_scott	Respond to of 176387

US Senator Levin to introduce stock options bill Wednesday February 6, 5:21 pm Eastern Time WASHINGTON, Feb 6 (Reuters) - Accusing Enron Corp. (NYSE:ENE - news) of using stock options to inflate earnings and avoid taxes, Sen. Carl Levin plans to introduce a bill requiring companies to disclose the impact of options on the bottom line, his office said on Wednesday. The bill, to be unveiled next week, would require companies to treat options on their tax returns the same way they treat them on their financial statements, according to a summary of the bill released by the Michigan Democrat's office. Enron, the one-time energy trading giant, was able to lower its tax bill by claiming option expenses on its tax returns. At the same time, it boosted its earnings by leaving the expenses off its financial statements, according to Levin's bill summary. Accounting rules allow option compensation to be kept off a company's books, according to Levin. To avoid paying taxes of $625 million on income of $1.8 billion, the Houston-based company allegedly claimed stock option tax deductions totalling nearly $600 million. But it never reported the $600 million as an expense on its financial statements, an expense that would have lowered Enron's income by one-third, had it been reported, Levin's statement said. Enron officials did not immediately return telephone calls seeking comment. Levin's bill is co-sponsored by Arizona Republican Sen. John McCain, Illinois Democrat Richard Durbin and Illinois Republican Peter Fitzgerald, Levin's spokeswoman said. The bill would not legislate accounting standards for options or directly require companies to expense stock option pay, but would require companies to tell the government and shareholders the same thing -- whether stock options are an expense and, if so, how much it will impact earnings.

To: John Koligman who wrote (168695)	2/8/2002 12:16:02 AM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

*A NEW FORTUNE FEATURE STORY WORTH READING... Dirty Rotten Numbers Enron has made us shine a light on the books of America's public companies. Now, if your company carries even a hint of bad accounting, the stock will be savaged. FORTUNE Monday, February 18, 2002 By Andy Serwer fortune.com <<...There's something terribly rotten with American business right now, and it's making a lot of us sick. All the new-economy lying and cheating that went on back in the '90s has come back to bite us in the you-know-what. And now it's judgment day. No more excuses. No more extended deadlines, extra lines of credit, or skeevy numbers. No more "just trust us." No more b.s. Even as Wall Street gazes hopefully at signs of a recovery, the market is ruthlessly separating the haves (as in, your numbers are on the level) from the have-nots (your numbers stink!). "It's sell first and ask questions later on anything that doesn't look clean,'' says Steve Galbraith, chief investment officer at Morgan Stanley...>>

To: John Koligman who wrote (168695)	2/8/2002 5:05:34 PM
From: mepci	Read Replies (1) \| Respond to of 176387

John: Revolution do come. They may take time. It require persistant of the stockholders. Somebody wrote in this week's business week that starting from Bush, all the republicans and democrats should pay back the contributions they received from Enronites into a kitty for employee victims of Enron. What a great idea. Add the money collected by the Enron management to that kitty, it might pay one year's rent for the employees who got hurt. How about the kid giving half his wealth to the Dell stockholders, yeh!!!