CITIGROUP BOMBSHELL: HELPED ENRON HIDE FINANCIAL CONDITION

http://www.drudgereport.com ^ | 7/21/02

[The Chief]

Intentionally manipulated written record of dealings with Enron: Senior Citigroup credit officers misrepresented '99 transaction in records of deal; Enron could ignore accounting requirements and hide true financial condition, the NY TIMES is planning to report on Tuesday, say sources... MORE... 'The paperwork cannot reflect their agreement,' according to one e-mail message written by James F. Reilly, a senior Citigroup loan executive in Houston, 'as it would unfavorably alter the accounting'... MORE...

[Fracas]

That's one of the reasons I don't listen to him. That voice! I wonder if the Dems think people 'have right to know' about Citibank? Somehow I doubt it.

[Dec31,1999]

Interesting ONLY if the Republicrats have the hutspa to actually follow through with real action instead of chatter.

That'll be the day. They have too much of their own dirty laundry to hide for that to take place. SSDD.

[Political Junkie Too]

Maybe I missed something in that article but did you see ONE WORD about Robert Rubin(instead Robert Bennett, attorney answered the questions)?!

LOL!!!

I posted this in an earlier thread, at 5:30pm:

If this news is true, it is not breaking now because the Democrats and the media are still trying to figure out how to report it and leave Rubin out of the story. -PJ

[dixiechick2000]

Could Bush and Pitt be waiting for this legislation to become law before they hand down indictments?
To be more specific, are they waiting for this to be enacted into law so they can really hammer them?

[Mo1]

Why do I have this sinking feeling in the pit of my stomach???

[kcvl]

Anyone taking odds on when Chelsea Clinton will announce "her wedding plans" (better than Wall Street at the moment)per Hillary needing to get this out of the news? LOL!

Don't you just know that she has her "little people" working their little butts off trying to figure out how to make this go away. Maybe she could get "her husband" to have an affair with some chic.

[swheats]

No doubt. Bush is too calm to not have a plan already in motion. You got to love it, he doesn't have his people on every talk show talking about what their planning on doing. He just does it.

[kcvl]

After reading that I understand exactly. "Stroke of the pen, law of the land, kinda cool, huh"? (sort of a quote from Georgi boy) soon to be NBC "anchor"(no conflicts at all either).

[Mo1]

Well the Enquire reported the news was suppose to be announced in June

Maybe Hilda is holding it till the right moment

[Mo1]

Have to agree there .. but what a mess he has to deal with .. Good Grief

[nopardons]

Oh, get off the damned class warfare m. Marxist mantra. Not every CEO is a degenerate, corrupt worm. There are bad apples in EVERY profession. It's time to cull the herd of bad apples and THAT is what's being done.

[kcvl]

If the Clinton past is any indicator of things to come hold on to your hat. Bush isn't finished cleaning up the mess of those people. We aren't anywhere near the full truth. We're still trying to clean up Arkansas and it's been almost ten years since they were OUT OF HERE only to have another MESS with the Clinton so-called library(motel no-tell). He and "his friends" are trying to get a TAX FREE ZONE reserved for real BUSINESSES to use. What a surprise! NOT!

They are trying to claim that it will bring in as much revenue as a business. lol! Yeah, I can just see it now...slut zone.

[justshe]

Homelessness, AIDS, racism, plagues, world debt, starving children, bad schools, pregnant teens, truancy...you name it; they're all President Bush's fault. :-)

Late to the thread, but you forgot to list the 'fat content' in McDonald's hamburgers. I'm SURE that GW is responsible for that too!

[kcvl]

Thank you! Cleaning house...always good to sweep out the accumulated dirt.

[kcvl]

It's REALLY hot and dry here too! LOL! Do you think I can blame BUSH for that also? I also had an extra cookie I shouldn't have eaten. That's his fault!

[Mo1]

Well I have to give Bush credit .. he seems to be dealing with all these messes pretty good

Like I said ... he has his hands full that's for sure

[Mo1]

I'm SURE that GW is responsible for that too!

No I think it was the oil used to cook the french fries that was Bush's fault

[kcvl]

eTawaiinNews.com

Senate hearing set on Enron's bankers

2002-07-23 / New York Times / By Richard A. Oppel Jr.

WASHINGTON

In the six years before Enron filed for bankruptcy protection, major banks helped the company camouflage more than US$8 billion in financing and increase its cash flow through deals permitting Enron to raise money without listing it as loans on financial statements, Senate investigators have found.

About US$5 billion of the amount was outstanding when Enron filed for bankruptcy in December, according to the Senate's Permanent Subcommittee on Investigations, which has scheduled a hearing on Tuesday to look at the role of the banks in Enron's collapse.

"The question the subcommittee will examine is the extent to which major financial institutions like J.P. Morgan Chase and Citicorp knew of and aided Enron's accounting deceptions," said Senator Carl Levin, who is the subcommittee chairman.

The panel's investigation has found that J.P. Morgan Chase, in 12 deals, did more than US$3.7 billion of the questionable transactions with Enron from 1992 to 2001, and that Citigroup did 14 deals valued at US$4.8 billion from 1993 to 2001. Of these amounts, respectively, US$1.4 billion and US$2.5 billion were outstanding at the time Enron sought bankruptcy protection. Executives of both banks are expected to testify on Tuesday.

People close to the subcommittee's investigation said other institutions involved, albeit on a smaller scale, include Bankers Trust, Barclays, the Connecticut Resource Recovery Authority, Credit Suisse First Boston, FleetBoston, Morgan Stanley, Royal Bank of Canada, Royal Bank of Scotland and Toronto Dominion.

A J.P. Morgan Chase executive said the deals were in keeping with generally accepted accounting principles and that the bank never tried to help Enron misrepresent its financial statements.

According to people close to the investigation, many deals occurred before the close of the quarter and might have helped Enron meet financial goals. Among the issues the subcommittee plans to examine is J.P. Morgan Chase's relationship with entities called Eastmoss and Mahonia that were set up in the Channel Islands off the coast of Britain.

In one transaction, on September 28, 2001, J.P. Morgan Chase transferred about US$350 million to Mahonia, which simultaneously transferred the same amount to Enron, people close to the investigation said. The deal called for Enron to repay the sum, plus about US$6 million, six months later. To people close to the investigation, the deal appears to be nothing more than a short-term loan to Enron, made to look like a natural gas deal.

J.P. Morgan Chase has told congressional investigators that it did not control Mahonia, but investigators are skeptical. The hearing may examine whether documents obtained by the panel suggest otherwise.

One document is a letter dated April 24, 1986, from Chase lawyers in the Channel Islands -- Chase did not acquire J.P Morgan until 2000 -- describing how the bank was trying to raise money for companies "not by way of borrowing but by way of a related transaction" using special-purpose vehicles. The same letter also noted that "for obvious reasons it is important that the SPV's are controlled by Chase but, for accounting and other requirements, it is not desirable that they are wholly owned by Chase."

Another document, on November 19, 1999, describes the incorporation of Mahonia II, which it says "will be invited from time to time to enter into arrangements that will assist the Chase Manhattan Bank in providing finance for major U.S. oil and gas companies."

© 2001-2002 Taiwan News. All Rights Reserved.

[AmericaUnited]

What did Rubin know, and when did he know it?

Hehe...

[nopardons]

You're most welcome . :-)

House cleaning, after 8 long, untidy , and filthy years, takes time. It will get done, though. LOL