Posted on 12/30/2001 4:49:35 PM PST by rdavis84
12/29 11:15
Politicians Return Enron Donations Ahead of Finger Pointing
By Holly Rosenkrantz and William Roberts
Washington, Dec. 29 (Bloomberg) -- Republican and Democratic campaign committees are returning or giving away $200,000 in contributions from Enron Corp. in a signal that both parties expect the company's collapse to become a political issue.
The National Republican Senatorial Committee gave back a $100,000 gift from Enron last month. ``We just decided that with all their financial troubles it was best to return it,'' Dan Allen, a spokesman for the committee, said.
The Democratic Senatorial Campaign Committee is giving $100,000 it received from Enron to a charity that will help workers, many of whom lost their jobs and retirement savings when the company's stock plunged.
Until a few weeks ago, neither party was shy about taking Enron money. The Houston-based energy company contributed $5.8 million over the past decade, with 73 percent going to Republicans, according to the Center for Responsive Politics, which tracks campaign money.
``The parties are always reluctant to return any contribution, especially one amounting to six figures,'' said Steve Weiss, the Center's communications director. ``This illustrates the dramatic extent to which the parties are seeking to distance themselves from a company in deep trouble.''
Bigger Problem for Republicans
The sudden collapse of Enron has turned the company into a political liability, especially for President George. W. Bush and congressional Republicans who had close ties to Enron Chairman Kenneth Lay, Bush's friend and biggest political backer.
Democrats say Enron's bankruptcy as a symbol for Bush's failed economic policies.
``Beside the fact that the Bush administration has a very close relationship with Enron, we think the company's collapse is a metaphor for how the administration runs the budget,'' said Jennifer Palmieri, a spokeswoman for the Democratic National Committee. ``Enron, like the administration, cooked the books, had unrealistic expectations about the future and only worried about one side of the ledger,'' she said.
Republicans say they are bracing for what may become Whitewater-style investigations and hearings.
``The Democrats from day one have tried to politicize energy,'' Vice President Richard Cheney's spokeswoman, Mary Matalin, said. ``This is just more of the same.''
Links to Enron
Administration ties to Enron include several relationships, in addition to Lay's friendship with Bush. Lawrence Lindsey, Bush's chief economic adviser, was on the company's advisory board and received $50,000 from them last year. Karl Rove, Bush's political adviser, once owned $60,000 worth of Enron stock. U.S. Trade Representative Robert Zoellick was also a member of the company's advisory board, and Secretary of the Army Thomas White, a former Enron executive, valued his company stock at between $25 million and $50 million earlier this year.
Senator Byron Dorgan of North Dakota, the chairman of the Commerce Committee's Consumer Affairs Subcommittee, has called for hearings into the company's collapse. So has Representative Henry Waxman of California, the senior Democrat on the House Government Affairs Committee.
``We know that there was a favorable climate in the Bush administration for Enron, but what's not clear is how they benefited from that favorable climate,'' said Karen Lightfoot, a spokeswoman for Waxman.
Investigations
Enron, once one largest energy traders, slid toward bankruptcy in November after disclosing that profits it had reported to shareholders and the government during the past four years were overstated by $586 million. The company's shares, which began the year at $83.13, closed yesterday at 60 cents.
The company filed the largest Chapter 11 bankruptcy after its credit rating was cut to junk levels and it couldn't raise cash to back trades. More than 4,000 employees have lost their jobs, and the retirement savings of employees with company-sponsored savings plans have been devastated.
The U.S. Securities and Exchange Commission, the Justice Department and Congress are investigating Enron's collapse. Former chief executive Jeff Skilling and former chief financial officer Andrew Fastow each are named as defendants in more than 40 lawsuits filed by investors and former employees who lost million when Enron shares plunged.
I wonder if Lockyear took some of their money?
Maybe these were unsophisticated people, but the law is very clear that 401k sponsors can not give ANY advice that would be considered investment advice. Maybe we do need more laws to protect "simple folk", but then maybe it should be up to the government to provide for everyone's retirement to keep things fair.
This is beyond hilarious in light of the recent orders from the administration re: secrecy. You need to change your medication.
The above statement could equally apply to:
U.S. Congress
FBI
DOJ
Washington D.C.
There was a $325 million securities fraud scheme in south Florida in which certain people made millions that had direct and/or indirect ties to the Fl. Attorney General. Robert Butterworth and the close personal friends and political cronies of the Maryland Attorney General, Joseph Curran Jr. and nobody has said boo about any of this.
And what the heck, there's plenty more money where that came from!
I thought there were some striking similarities but I didn't think I would find this.
Learn From Enron's Shocking Collapse
p.s. Sungirl reason I dragged you over to this article thought you might be interested.
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