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Enron: The Democratic Battle Cry?
Fortune.com ^ | 12/27/2001 | Jeffrey H. Birnbaum

Posted on 12/31/2001 2:06:48 PM PST by GeneD

Enron is likely to move from the business pages to the front pages the more that the capital scrutinizes the largest corporate bankruptcy in history. And lawmakers and regulators are sure to look very closely indeed.

At least four congressional committees, the Justice and Labor Departments and the Securities and Exchange Commission are investigating. This is on top of the many corporate inquiries that are ongoing. Washington is also bracing for political fall-out. And that could end up being quite extensive. The imbroglio could turn into a political scandal for the Bush administration.

Enron and its chairman, Ken Lay, are George W. Bush's largest campaign contributors, giving nearly $2 million since 1993. Two senior White House advisers, economic aide Larry Lindsey and U.S. Trade Representative Bob Zeolick were once employed by Enron, and until recently Republican National Chairman Marc Racicot lobbied for the company. What's more, Lay was one of the few energy industry CEOs to meet with Dick Cheney as the Veep was formulating the Bush energy plan.

So far, no one's found any link between Bush and Enron misdeeds. In fact, no one has yet officially found any Enron misdeeds at all. But if something were found, and a Bushie were part of the act, then brace yourselves for months of televised hearings. The Bush Whitewater. In the meantime, the labyrinth of connections has Democrats salivating. Democratic National Committee Chairman Terry McAuliffe says that he plans to highlight Enron in rallies designed to portray Bush and the GOP as fiscally irresponsible and overly favorable to corporations. "The collapse of Enron is an apt metaphor for how Republicans have cooked the federal books and don't take care of workers," McAuliffe says.

This will be the Democratic battle cry and is a reason why the Democratic-controlled Senate was so willing to abandon the stimulus legislation. It might not have gotten a bill but it did get an issue (giveaways to corporate special interests). Enron fits right in. Then again, the Democrats aren't completely clean in this matter. The Center for Responsive Politics lists Democratic Senators Chuck Schumer of New York, John Breaux of Louisiana, and Jeff Bingaman of New Mexico--chair of the Senate Energy Committee--among the top beneficiaries of Enron's political donations. No. 20 on the Enron money list since 1989 is the Senate's leading Democrat, Tom Daschle of South Dakota.

Most importantly, the bulk of Enron's alleged chicanery had to have happened during the Clinton administration. In those days, Lay golfed with Bill Clinton, hired the firm of Clinton's former chief of staff Mack McLarty, and retained as his top D.C. lobbyist Linda Robertson, a Democrat who worked for the Clinton Treasury Department. The DNC's McAuliffe asserts that "Enron equals Republican," but the math might not work out that way. Much of 2002 will deal with keeping score. And Happy New Year!


TOPICS: Business/Economy; Editorial
KEYWORDS: calpowergate
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1 posted on 12/31/2001 2:06:48 PM PST by GeneD
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To: GeneD
Aren't we used to scandal by now? We've had eight years experience so far with it...let's move on, right? [/sarcasm]
2 posted on 12/31/2001 2:10:22 PM PST by pray4liberty
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To: GeneD
I have some Goron neighbors who dream about Enron clobbering Bush. I pointed out that Lay golfed frequently with Bubba, and got a bad case of Cleopatra Syndrome in return...
3 posted on 12/31/2001 2:10:25 PM PST by Poohbah
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To: GeneD
I read that just days before filing for bankruptcy Enron made huge contributions to the DNC.
4 posted on 12/31/2001 2:11:16 PM PST by pgkdan
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To: GeneD
This could be the opportunity that the liberal press is looking for to spin and lie. They have already tabbed Bush as a corrupt "Texas oil man" during the campaign and during the California energy crisis, although that's been forgotten for the last few months. But they could easily revive it. It's doubtful that Bush is involved in any way, but when did the liberal media ever care about facts when their ideology was at stake?
5 posted on 12/31/2001 2:11:40 PM PST by Cicero
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To: GeneD
They'd better talk to lil ol' Terrance Thorne first and ask the then (and maybe still) Enron exec just what he was doin' at that Clinton coffee...
6 posted on 12/31/2001 2:13:59 PM PST by mewzilla
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To: GeneD
Hey, the Governor of California destroyed his political career on the energy issue by yelling about Enron and Bush connected evil price gougers. I hope there are lots of democratic Senators and Congressmen & women who want to follow suit.

After all the Democrats need something really stupid to do now that Bill Clinton isn't leading them down dark political alleys! Democrats gave up control of Congress over the Assault Weapon vote. They also caused Gore to loose because of their continued support for Gun Control. Now, maybe it is time they expanded their stupidity to include a new loosing item, Enron and Energy Deregulation. One would have thought they would have learned their lessons from Califonia. But hey, its a free Country!

7 posted on 12/31/2001 2:14:34 PM PST by Robert357
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To: GeneD
Well, it's about time. The Democrats that I know have no more recent cause celebres than "Newt," "Iran-Contra," or (and I am serious) "James Watt."

Problem is, no one generally speaking knows or cares what Enron is, unless it's that place where the Astros play. Which is the purpose of these hearings, of course.

8 posted on 12/31/2001 2:17:50 PM PST by denydenydeny
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To: GeneD
The Average Joe doesn't care, nor understand, two wits about Enron. Which means the 'RATS can demagogue it all they want and people will believe them.
9 posted on 12/31/2001 2:18:23 PM PST by My2Cents
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To: GeneD
Bush's Whitewater.

Tell me how much damage Whitewater actually did to Bill Clinton's administration.

Complicated financial situations simply don't interest the American people unless somebody got nekkid in the process.

10 posted on 12/31/2001 2:22:16 PM PST by sinkspur
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To: sinkspur
Hey Sink Jeff Birnbaum is a complete left wing nutcase that hates anything Bush. Sorta like some of the Freepers of late.
11 posted on 12/31/2001 2:36:49 PM PST by cksharks
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To: cksharks
Are you referring to some of our...ahem...newer "seminar posters?"
12 posted on 12/31/2001 2:39:07 PM PST by Poohbah
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To: GeneD
A couple of tidbits the democrats will have to deal with also......

Dec. 27, 2001, 11:57PM

Enron defends timing of checks for Democrats

By DAVID IVANOVICH
Copyright 2001 Houston Chronicle Washington Bureau

WASHINGTON -- Just days before Enron Corp. landed in bankruptcy court, the one-time political powerhouse may still have been funneling campaign dollars to Democratic lawmakers, federal election records indicate.

As Enron executives were scrambling to salvage a deal with Houston-based Dynegy in a vain effort to stave off bankruptcy, the Democratic Senatorial Campaign Committee received three checks from the Houston-based energy and trading giant totaling $100,000, Federal Election Commission records show.

The contributions were collected on Nov. 26, according to the committee's report to the FEC, six days before Enron sought protection under Chapter 11 of the U.S. Bankruptcy Code.


Tripping with Ron Brown

Enron Corporation

Kenneth Lay, chairman and chief executive officer of the Enron Corporation, accompanied Secretary of Commerce Ronald Brown on the trade mission to India in January, 1995.

In India, Enron signed a contract for a 2,000 megawatt power plant in Dahbol worth an estimated $400 million. Enron also won a contract to build a $920 million power plant on the West coast of India and a $1.1 billion contract for offshore gas and oil production.

Rodney L. Gray, chairman and chief executive officer of Enron International accompanied Brown on the trade mission to Russia in March and April of 1994.

In Russia, Enron signed a deal to develop a market for Russia gas in Europe.

Enron is a natural gas conglomerate based in Houston, Texas.

During the 1991-92 election cycle, Enron gave $28,525 to the Democratic party while Brown served as the chairman of the Democratic National Committee. Enron gave $42,000 to the Democratic party in the 1993-94 cycle.


13 posted on 12/31/2001 2:41:59 PM PST by deport
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To: sinkspur
Even though the RATS seem to be involved with Enron too, I doubt either party will be able to make an issue of it. Its just too complicated for people to understand or care about.
14 posted on 12/31/2001 3:03:41 PM PST by 07055
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To: GeneD
The imbroglio could turn into a political scandal for the Bush administration.

First this statement, with absolutely no facts or connections to be made, then this statement:

the bulk of Enron's alleged chicanery had to have happened during the Clinton administration. In those days, Lay golfed with Bill Clinton, hired the firm of Clinton's former chief of staff Mack McLarty, and retained as his top D.C. lobbyist Linda Robertson, a Democrat who worked for the Clinton Treasury Department. The DNC's McAuliffe asserts that "Enron equals Republican," but the math might not work out that way.

Here, we see that what it REALLY is a potential scandal for the former (thank God!) KLINTON administration.

15 posted on 12/31/2001 3:07:01 PM PST by freedomcrusader
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To: GeneD
If theDems try this attack it would come under the "give them enough rope to hang" category. I read down to about fourteen posts and saw plenty of counter-ammo. Need More?

Check out last fri or sat Detroit Free Press in re: Tribal Casino Gambling! Cummulative donations to Dems is in the millions and about 95/5 vs Pubb donations.

Which is worse, an oil donation (energy fuels nation & economy) or a Gambling donation (broken lives,bancrupcty,suicide, divorce, murder).

In reference to the comment about newer visitors or posters, I'm new, proud, loud and as dedicated as you older poster fellers and ladies. Be kind por favor.

16 posted on 12/31/2001 3:13:12 PM PST by BOBTHENAILER
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To: freedomcrusader
"Here, we see that what it REALLY is a potential scandal for the former (thank God!) KLINTON administration."

Unless the Democrats should advise their willing handmaidens in the press to ignore those inconvenient connections and, instead, blame it on Bush and the Republicans.

It's just a little lie, you understand. And no lie is too big for the liberal cause...

17 posted on 12/31/2001 3:16:24 PM PST by okie01
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To: pgkdan
I read that just days before filing for bankruptcy Enron made huge contributions to the DNC.

Big companies routinely play both sides of the fence in order to cover themselves no matter who ends up in power at a given time. This is so blatantly obvious that it was even part of a West Wing storyline a couple weeks ago.

18 posted on 12/31/2001 4:37:00 PM PST by Timesink
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To: Poohbah
If I REMEMBER correctly DIDN'T MUCH OF THIS FIASCO START DURING CLINTON'S GLORIOUS ECONOMY???? I say BRING IT ON!!!! Lets see how much HILDABEAST PROFITTED FROM THIS COLLAPSE!!!THIS might be FUN!!!! :-))))
19 posted on 12/31/2001 4:42:25 PM PST by Roger_W_Isom
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To: GeneD
No one can make records disappear like Willie and his team of sewer dwellers. That is why it is essential to "freeze" the posted records of contributors to all democrap candidates over the past 8 years. The media won't do it (they're counting stuff in Florida) and somebody must.

As I recall, Enron, the corporation, couldn't fund democraps, so we need a list of the Enron PACS and the names of the top officials in whose names the contributions to Willie, candidates and the DNC would have been made. Then each dem candidate, winner or loser, over the past 8 years has to be checked and the figures aggregated. Candidates on the committees that could fix things for Enron (power plant in India?) should be checked. Did Willie get a bribe for pardoning any one associated with Enron. No need to check Enron contributions to Republicans, the media will do that.

20 posted on 12/31/2001 4:52:17 PM PST by Tacis
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