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

To: James Calladine who wrote (1869)	3/5/2002 5:11:24 PM
From: Raymond Duray	Read Replies (1) \| Respond to of 3602

I'm sure there are those who are accusing me of sounding a bit like a wet hen.... <g> For a good reason. BTW, does anyone on the thread know about an outfit called Cogentrix? They seem to view our area as being ripe from plunder: stopcogentrix.tripod.com

To: James Calladine who wrote (1869)	3/6/2002 5:10:16 PM
From: stockman_scott	Respond to of 3602

Freddie Mac drops Andersen March 06, 2002 (Reuters) — Mortgage giant Freddie Mac on Wednesday dropped Andersen as its auditor after a 30-year association, becoming the latest prestigious client to distance itself from the embattled accounting firm. ``This is not good news,'' said Art Bowman, editor of accounting industry newsletter Art Bowman's Accounting Report. ''This is another brick being pulled out of the wall that, if it continues, could lead to the collapse of the wall at Arthur Andersen.'' The move comes less than a week after pharmaceutical company Merck & Co. dumped Andersen as its longtime auditor and less than a month after SunTrust Banks Inc. did the same. It marks a fresh blow to Chicago-based Andersen, which has been losing clients rapidly as a result of its role in the Enron Corp. scandal. The firm, which last week agreed to pay $217 million to settle an unrelated malpractice lawsuit, signed off on Enron's books and is now part of a wide-ranging investigation surrounding the bankrupt energy company. Andersen is fighting for survival as it faces multiple lawsuits from angry investors and perceptions that its credibility may be beyond repair. Virginia-based Freddie Mac said its board replaced Andersen with PricewaterhouseCoopers as its independent public accountant for the year ending Dec. 31, 2002. The mortgage-buying organization did, however, say it would retain Andersen as a consultant. ``Arthur Andersen has provided Freddie Mac with high quality audit service since 1970, and Freddie Mac will continue to benefit from Arthur Andersen's knowledge and expertise through an ongoing consulting relationship,'' Freddie Mac said in a statement. Freddie Mac paid Andersen $8.2 million in consulting and other fees in 2000, the last year for which figures are available. It paid only $1.1 million for audit fees. Andersen officials were not immediately available for comment. ``We are very pleased that Freddie Mac has selected us and we look forward to working with them,'' said David Nestor, a spokesman for PricewaterhouseCoopers. Bowman said Freddie Mac's defection continues a trend and sends a message of distress at Andersen. ``The issue from the beginning has been that Andersen had to re-establish its credibility with its current client base and it appears to be having a problem doing that,'' he said.