U.S. Congress Demands Documents, Files From Enron and Andersen Executives

Congress demanded documents and personal files from current and former officers and directors at Enron Corp. and its auditor, Arthur Andersen LLP, in an effort to find out what led to the biggest U.S. bankruptcy.

The House Energy and Commerce Committee asked for the personal files of David Duncan and five other Andersen partners involved in the audit of Enron, after Andersen said its employees had destroyed documents and e-mails, committee spokesman Ken Johnson said. The Senate's Permanent Subcommittee on Investigations subpoenaed papers from both Enron, once the biggest energy trader, and Andersen.

Liebermann is suggesting that the Bush administration should maybe have alerted people about the demise based on the phone calls they received in late October.

I guess what Joe is saying is that Cheney, O'Neil, Fischer or Evans should have warned somebody (the SEC? the NSYE? The Justice Department? Labor Department? Ennron shareholders?) that the skin was about to come off the balloon.

It's kind of like finding out that your boss's business partner has been running a Ponzi scheme that is about to collapse. He comes to you asking you to co-sign a loan that will allow him to keep the scheme going for a while. Naturally, you refuse. But is that the end of your obligation?

What about all the people still caught in the Ponzi scheme -- people who have no idea that the money they planned to retire on is being drained away as you sit there? Have you any obligation to them -- the people you now KNOW your boss's partner has been cheating? Do you speak up? Do you expose the truth of the situation? Or do you permit your boss's business partner to cash out with his excess zillions while all the "little guys" tumble off a cliff?

There is a difference between the narrowest reading of the law and the broadest reading of "love thy neighbor."

Does it matter to us which one this administration tends to go by?

I don't think they knew about the total demise and collapse until late in the game. Late October it sounds like. Plus, I don't know if they knew what was really going on, i.e., if there was some "criminal" activity - accounting or otherwise.

This is very unfortunate for many people and it doesn't provide much confidence in the SEC. But how the Bush administration could have informed people is beyond me. Remember, Enron didn't admit to the accounting problems and take the hit until November.

Plus, I don't like the political spinning. The Dems are trying to do a "damned if you do, damned if you don't" dance here.

Actually, a good way to effect some real change would be to scrap the whole tax code and institute a flat tax on personal income only

But it isn't going to happen. Too many individuals and groups depend on tax breaks. For self employed people getting a standard deduction, even in a lower tax bracket, it is painfully obvious how ridiculously high taxes are. Whenever the code is simplified, the exceptions start almost immediately.

I really think people who have lost their life savings or their jobs while people at the top have done just fine might form a core demanding reform...and it won't be about changing taxes but about no special protections for the elite. But it's going to take an awful strong leader to affect change...the powers that be are going to marginalize and ridicule anyone who tries.

If the GOP could just circulate some talking points this would go away rather easily.

Warn investors=share price drops

Help secure loans=bailing out Big Oil

And the list can go on. For every point the Dems have brought forward there is a simply counter point that the public can easily understand.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.