It's About Freaking Time!

January 9, 2002 6:12 PM

It's About Freaking Time! Finally, Someone is actually looking into whether or not Enron might maybe have violated the law. Until now, Ashcroft's little Department was just about the only organization in Washington DC not investigating these jokers. For those who haven't been paying attention, allegations include accounting irregularities, improper partnerships, price fixing, single handedly causing the California Energy Crisis, and failing to let thier employees get thier 401k money out of company stock before it dropped precipitously.
posted by ilsa (10 comments total)

Might have violated the law?!?

I thought the only question was regarding which ways they didn't violate the law! Certainly seems the easier question, at any rate...
posted by five fresh fish at 6:28 PM on January 9, 2002

Worth noting that the Banking committee, intimately involved in such matters, has thus far refused to investigate. Gosh. Wonder why.
posted by Postroad at 6:37 PM on January 9, 2002

How do you jibe "Finally, Someone is actually looking into whether or not Enron might maybe have violated the law" and "Ashcroft's little Department was just about the only organization in Washington DC not investigating these jokers"?

I think there are at least 6 congressional investigations going on now! Still, it's good to see the DOJ jump on the bandwagon.
posted by revbrian at 7:12 PM on January 9, 2002

If you're following along at home attention has moved from JEDI Capital to the financial vehicle known as Chewco responsible for most of the losses. But Obi-1 Holdings and Kenobe Inc are still wildcards. Still no sign of the Ewoks. Various types of birds are represented as well.

Anderson is the only one left with the deep pockets and their feeble attempt to cover their asses failed. We'll see how much of the responsibility, both financial and legal, they share.
posted by euphorb at 9:03 PM on January 9, 2002

Employees who had most of their holdings in Enron stock were fools. ANYBODY who has most of their retirement money in a single stock is a fool. Asset diversification, my friends. Indeed, I'm not quite certain how they could legally tell their employees that their stock is about to become worthless, nor practically how it would work such that the subsequent employee run on the stock wouldn't itself simply hasten the company's demise and inherently unfair recouping of investment.
posted by dhartung at 11:33 PM on January 9, 2002

dhartung, please see CFO.com's: Angry Employees Sue Enron: "The suit alleges that Enron 'locked down' 401(k) accounts on October 17, preventing employees from changing the investments they held in their accounts until November 19. During that period Enron reported its first quarterly loss in four years and took a $1.2 billion charge relating to off-balance-sheet deals that are now being investigated by the Securities and Exchange Commission."
posted by Carol Anne at 5:29 AM on January 10, 2002

single handedly causing the California Energy Crisis

This is a gross oversimplification of an extremely complex situation. Enron was certainly a major contributing factor, but by no means the only one.
posted by MrBaliHai at 6:11 AM on January 10, 2002

But how rigorous will this investigation be? (from Buzzflash)

After all, Ashcroft did receive $50,000 in campaign contributions from Enron CEO Kenneth Lay and Enron just over a year ago for his unsuccessful U.S. Senate race here in Missouri. That's no mean feat, seeing as how our state doesn't exactly abound in oil wells.
posted by ferris at 7:26 AM on January 10, 2002

dhartung: the more important point is that enron only locked down the lower level employees' stock. the executives, including Lay and Wendy Gramm (wife of Texas senator Phil Gramm), sold over $1.2 billion in stock after the lockdown. and that is why they should be put in jail with a large man named bubba.
posted by d_brown3 at 8:08 AM on January 10, 2002

the more important point is that enron only locked down the lower level employees' stock.

Obscene. Only two employees are suing. I think a class-action suit is in order.
posted by Modem Ovary at 8:23 AM on January 10, 2002