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

To: Baldur Fjvlnisson who wrote (4331)	8/9/2002 7:00:02 AM
From: Mephisto	Read Replies (1) \| Respond to of 5185

"This was absolutely a sham transaction, and it was an 11th hour deal," said one former Enron executive who was briefed on the deal. "We did this deal to get 1999 earnings." This account was confirmed by five other former executives who either worked on the deal or were briefed on it. All the executives insisted on anonymity, concerned either about losing their current jobs or being drawn into the litigation over Enron's collapse. Merrill Lynch officials said there was nothing improper about the power deal and no prearrangement to cancel it, and one former Enron executive involved in the deal agreed. " >>>>>>>>> Hello, Baldur, They all say their innocent don't they. Bush, Cheney and the others in the White House, like Merrill Lynch and Citibank, always say they could never have made a mistake, don't they?

To: Baldur Fjvlnisson who wrote (4331)	8/9/2002 7:01:22 AM
From: Mephisto	Read Replies (1) \| Respond to of 5185

Citigroup executives named in Enron-linked class action David Teather Wednesday August 7, 2002 The Guardian A class action lawsuit has been filed against Citigroup alleging that the investment bank and its senior executives misled shareholders about a 1999 transaction with collapsed US energy trader Enron. The action, filed in New York, adds to the growing list of actions arising from Wall Street scandals. Disgruntled investors have prompted a feeding frenzy among lawyers, who sense that public opinion has shifted against once high-flying investment banks. The suit refers to a transaction structured as a commodity trade that it claims was a disguised loan devised to keep $125m (£80m) of debt off Enron's balance sheet; it names chairman and chief executive Sandford Weill and chief financial officer Todd Thomson. Last month, congressional investigators grilled Citigroup and another leading Wall Street bank, JP Morgan Chase, about their relationships with Enron. They alleged that both had helped Enron to conceal its debts through complicated commodity trades. Shares in both firms have been hammered by the Washington hearings, which JP Morgan described as a "highly politicised media event". Both banks have counter-attacked, arguing that what they did was consistent with years of industry practice and had been vetted by lawyers and auditors. The suit, filed by lawyers Schiffrin & Barroway, also accuses Citigroup of "misrepresenting Citigroup's potential Enron-related exposure in its 2001 annual report and elsewhere". The law firm last year tried to sue former star internet analyst Mary Meeker, but had the case thrown out of court. In a letter to Citigroup's 270,000 employees, Mr Weill apologised for the pain caused by the bank's relationship with Enron - although he again insisted that nothing improper had been done. guardian.co.uk