July 23, 2002
Congress Examining Role Of Big Banks In Enron Collapse
A US Senate investigator testified Tuesday that multi-million dollar bank loans to Enron Corporation helped the Houston energy trader hide its precarious financial condition. He says Senate investigators found some banks actively helped Enron in its dodgy accounting in return for big fees and favors in other deals. He says the nation's largest financial institution, Citigroup, as well as JP Morgan Chase also pitched the schemes to other companies. Enron filed for bankruptcy in December, taking the investments of millions of people with it. It used a web of off-balance-sheet partnerships to hide some $1 billion in debt from investors and federal regulators
Investment Banks Role at Enron Probed (AP)
Congress is examining whether multimillion-dollar loans to Enron Corp. by big investment banks had the effect of helping the now-collapsed company conceal its true financial condition.
- Jul 23 8:46 AM ET.