Posted on 01/11/2002 7:59:12 AM PST by an amused spectator
The underlined portion is an out-and-out lie.
In recent days, White House officials have begun to point to Enron's bipartisan - albeit lopsided - political donations as one sign that the administration was not alone in its relationship with the energy trader.
Kornblut's "example" of gifting to Democrats?:
Lay also has given to Democrats, donating $500 to Representative Edward J. Markey of Massachusetts in 1996.
Another lie by obfuscation. Kornblut apparently was too busy doing her nails or somesuch to investigate the McLarty and Ron Brown connections. ;-)
The verdict is in: Paid Liberal Troll
Does anybody have the slightest doubt how "troubled" Waxman would be if the Bush Administration had tried to intervene?
The same magnitude stock-price decline happened with numerous stocks, most notably internet plays, in 2000-2001. We're just beginning to see that the Enron fiasco was due to poor auditing. The precipitous stock crash for the internet-type companies was ~probably~ due to normal business reasons, which are pretty clear by now: get funding, sell vaporware, take the money and run.
If I'm not mistaken Enron was in the proccess of changeing it's 401k manager at the time of the free fall, if true they employees could not do anything with their accounts.
From the article:
In early 2001, Enron decided to contract out its 401(k) administration to an outside company. The transfer required a freezing of accounts, which took place over a period in October and November. The time frame is under dispute, and is the subject of many lawsuits. The company claims the period was 12 trading days, from October 26 through November 12. One employee has testified that accounts were frozen as early as September 26. One lawsuit claims that different accounts were frozen for different time periods. Another claims the lockdown started on October 17.
This general period was horrible for Enron. Some of the highlights: On October 16, it announced that it had to take a $1.1 billion charge for bad investments. On October 22, the Securities and Exchange Commission (SEC) announced a probe of Enron. On October 29, Moody’s downgraded Enron’s credit ratings. On October 31, the SEC upped its probe to a full-fledged investigation. On November 8, Enron reduced its claim for net income since 1997 by 20 percent.
On October 26, the day Enron claims it froze its 401(k) accounts, its stock was at $13.81. By the time 401(k) investors could sell again, the stock was at $9.98.
This lockdown is troubling, but the facts are murky. Enron claims it was routine and previously scheduled. But considering events, one would think that prudence should dictate that Enron postpone the transfer until less tumultuous times. One retiree claims Enron pushed its stock aggressively. But another retiree who left his entire account in company stock says he was advised to diversify. Did executives push stock on employees while selling from their portfolios? We’ll know more someday, as the Federal Trade Commission, the Department of Labor, and a gazillion attorneys are all investigating the issue.
EXACTLY!! AA was a huge supporter of Bill and the gang. I would like to know what period was covered by the documents that were purposely destroyed. I'll bet a paycheck that what is missing is what would point a conclusive finger at more wrongdoing by Bill.
To: lewislynn
On October 26, the day Enron claims it froze its 401(k) accounts, its stock was at $13.81. By the time 401(k) investors could sell again, the stock was at $9.98..... (that's a 30% loss in value)
In other reports, I have read that at its highest point Enron stock was somewhere in the $80 -$90 range. Let's say $80 to be conservative. Then at $13.81, Enron would already have lost over 80% from its high point. I can tell you I would have been 100% out of Enron in my 401(k), given the choice which they apparently had, long before it hit $13.81!
22 posted on 1/11/02 12:28 PM Pacific by FairWitness
These were the same employees who rode the stock all the way down from $90 to $13, so the chances of them wanting to sell during the lockdown period were probably zero. I wonder how many immediately sold after the lockdown period expired. I'll bet it was not very many at all.
Any current or former Enron employees care to comment?
Basically the story is "they new they were going to go bankrupt but did nothing to interfere with the workings of the free-market." Oh the Horror!!!
What Rep. Godzilla Nostrils really meant was: "I tried to catch the Bush administration offering a sweetheart deal to Enron, but since they didn't (DAMN), I have to use the 'He hurt the little people' tactic now."
Can you believe this P.O.S. CLYMER???? He's unbelievable!!!
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