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

To: James Calladine who wrote (2230)	6/25/2002 6:22:33 PM
From: Raymond Duray	Read Replies (1) \| Respond to of 3602

Hi Jim, Re: Yes, he and his wife have a lot to answer for, but will they? Only if there is a progressive sweep of the November elections. Otherwise, the GOPsters will continue to sweep the dirt under the rug. -R.

To: James Calladine who wrote (2230)	6/26/2002 8:11:12 AM
From: The Duke of URL©	Respond to of 3602

Pigeons coming home to roost: From tomorrow's WSJ: Investigators are opening a new front in their inquiries into the financial legerdemain plaguing many companies, a probe that includes Citigroup Inc. and J.P. Morgan Chase & Co., two of the U.S.'s biggest financial-services firms, for their role in developing controversial financing arrangements for energy companies. The banks, responding to fears among energy companies that they couldn't keep boosting their earnings at a torrid pace, arranged complex financing deals in recent years that boosted cash flow from operations, according to people familiar with the matter. These arrangements, which were pitched to and adopted by Enron Corp., Dynegy Inc., and possibly other energy concerns, had the effect of burnishing these companies' financial statements in a way that may have misled investors, according to people familiar with the inquiries. In some cases, the banks were aggressive in pitching these products, the people said. "Citigroup developed these deal structures with Enron," says Jeff Grey, a former Enron public affairs executive speaking out for the first time, "and then marketed them to Dynegy, and presumably others." The developments could represent a major new direction in the inquiries into dubious accounting in the energy business, highlighting the role that Wall Street firms played in helping to concoct partnerships or other arrangements that later raised questions, causing some of these companies to ...