June 27, 2002 |
New York Atty. Gen. Eliot Spitzer said Wednesday that his office will investigate analyst commentary on WorldCom Inc., which had a "buy" rating from star telecom analyst Jack Grubman at Citigroup Inc.'s Salomon Smith Barney from 1997 through this April. Just Monday, with the stock down more than 90% from December, Grubman cut his rating to "under-perform" from "neutral." "It did catch many people's eye that he finally issued a downgrade," Spitzer said.
March 27, 2002 |
A creditor's effort to evict Global Crossing Ltd. from a New York site where a fiber-optic cable from England hooks into the network of U.S. land lines would wipe out a third of Global's transatlantic telephone traffic and slash the company's value to potential buyers, the company argues in a court document. The attempt by Level 3 Communications Ltd.
March 15, 2002 |
Federal prosecutors Thursday hit accounting firm Andersen with a criminal indictment for allegedly orchestrating the "wholesale destruction" of tons of Enron Corp. documents, raising new doubts about Andersen's survival. The one-count indictment is the first of what Justice Department officials hinted could be a string of criminal charges arising from the collapse of energy giant Enron, which filed for Chapter 11 bankruptcy protection Dec. 2 amid an accounting scandal.
February 7, 2002 |
When former Enron Corp. Chief Executive Jeffrey K. Skilling appears at a hearing on Capitol Hill today, he will be pressed by lawmakers on his failure to control controversial Enron partnerships. But if his dealings with Enron's internal investigative committee are a guide, he is almost certain to point to aggressive underlings as the main culprits in a series of complicated financial transactions that eventually brought about the energy trader's collapse.
February 6, 2002 |
Former Enron Corp. Chairman Kenneth L. Lay acknowledged to company investigators that he should have kept a closer eye on the energy trader's financial operations, but he also pointed the finger at subordinates, the head of the company's internal investigation told Congress on Tuesday. "I think he felt he had not been watching carefully enough, but he certainly felt he had been betrayed," said William C.
February 5, 2002 |
Congressional investigators prepared Monday to subpoena former Enron Corp. Chairman Kenneth L. Lay to appear before their panels, while the Justice Department rejected calls for the appointment of an independent counsel to investigate the energy giant's collapse. At a hearing on Capitol Hill, the nation's top securities regulator confirmed his agency postponed a routine review of Enron's financial statements in 2000, in part because Enron appeared to be healthy.
February 2, 2002 |
It seemed like a productive day for Elizabeth Hanford Dole. She was in Houston last September for a speech, and an influential supporter pulled together a luncheon fund-raiser at a snazzy hotel for Dole's U.S. Senate campaign in North Carolina. Dole, the race's likely Republican nominee, went home with a tidy $20,000. But now she's paying an unexpected political price. The host of that fund-raiser was Kenneth L. Lay, then-chairman of the still-solvent Enron Corp.
January 23, 2002 |
Federal agents opened an investigation Tuesday into the destruction of documents at Enron Corp. headquarters in Houston after company executives found a wastebasket full of shredded material in the company's 19th-floor accounting offices. The action came as President Bush for the first time expressed outrage that employees and shareholders had not known all the facts about the company's precarious position. "My own mother-in-law bought [Enron] stock . . .
January 23, 2002 |
The fee Enron Corp. paid the Andersen accounting firm to audit its books was one of the richest in corporate America, a fee that reflects the complexity, and possibly the risk, inherent in the job. Enron paid Andersen $25 million for the year 2000 audit, a figure higher than all but one of the companies in the Dow Jones industrials that reported their audit fees. The average charge among the blue chips was just $9 million, according to a review of such fees by The Times.
January 21, 2002 |
Executives at Andersen may have to pay hundreds of millions of dollars to settle litigation over the Enron Corp. debacle because the accounting firm probably does not carry enough insurance to satisfy what are expected to be massive claims. Andersen's 4,700 top managers, known as partners, may lose some or all of their personal investments in the firm, which range from about $100,000 to more than $5million, said insurance, litigation and accounting experts.