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Friends in High Places: Bankrupt Enron Held Sway with Bush Administration!
ABCnews.com | December 10, 2001 | Josh Gerstein

Posted on 12/10/2001 7:47:51 AM PST by BluH2o

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To: lewislynn
INVESTING'S NUMBER ONE RULE: Pigs get fed, hogs get slaughtered.
21 posted on 12/10/2001 8:13:01 AM PST by isthisnickcool
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To: Phantom Lord
How the hell does one connect a company going out of business with somehow getting special treatment from the Bush adminsitration? If Bush had so much pull then why are they going bankrupt?
22 posted on 12/10/2001 8:13:36 AM PST by KC_Conspirator
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To: getsoutalive
The company only gave 401k matching contributions in the form of company stock and participants were not permitted to sell until they had reached age 50.

The Enron employee interviewed on GMA had 21 years with the company. He appeared to be in his mid-fifties. He had tried to cash out a large portion of his 401K earlier this year and wasn't permitted to do so.

23 posted on 12/10/2001 8:15:31 AM PST by BluH2o
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To: getsoutalive
This is a different case altogether, and something still doesn't make sense. If the company only provided company stock as matching contributions, then what happened to the employee's original contributions? For the scenario described here to make any sense (i.e., a $500,000 retirement fund now worth only a few thousand dollars), the guy must have been buying company stock with his original contributions as well.
24 posted on 12/10/2001 8:15:39 AM PST by Alberta's Child
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To: KC_Conspirator
If Bush had so much pull then why are they going bankrupt?

Then maybe the lesson for future corporations/CEO's is don't give Bush any money.

25 posted on 12/10/2001 8:17:57 AM PST by lewislynn
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To: GEC
If they held so much sway with W, how come they're bankrupt?

Good point.

26 posted on 12/10/2001 8:22:49 AM PST by Random Access
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To: lewislynn
You have missed the point entirely on this one. The employees were "not allowed" to sell their shares because the shares they owned were provided by the company in the form of matching contributions. In other words, the only money these employees "lost" was the money that the company provided to them in the first place! Any employee who used his own 401(k) money to buy company stock was a damned fool.

Your question about Bush/Enron vs. Clinton/Enron is an idiotic one. If this were a Clinton/Enron story then it never would have been investigated by ABC News.

Someone needs to explain to me how the allegation in this story makes any sense. Enron has wielded tremendous influence over George W. Bush since he was governor of Texas, and has used that influence recently to push for energy deregulation. As a result of energy deregulation (as well as an oil agreement that Bush reached with Vladimir Putin last month), Enron is now bankrupt. It sounds to me as if: 1.) Enron had absolutely no influence in the Bush Administration, or 2.) Enron had lots of influence but had no idea what the f#ck they were supposed to do with that influence.

27 posted on 12/10/2001 8:23:23 AM PST by Alberta's Child
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To: Alberta's Child
I don't pretend to know what happend to anyone's account. I am just reporting what was stated in the media previously. There were probably many employee's who bought company stock with voulantary contributions, many plans offer discounts to further encourage this. I know many people who continue to do this even after I try to alert them to the dangers. But the point is many were forced to hold through this mess.
28 posted on 12/10/2001 8:23:33 AM PST by getsoutalive
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To: BluH2o
I've read that the books were not in good shape.

If they are going to start throwing blame around, I'd have have look at the auditors.

Public corporations must subimit independently audited financial statements to the SEC. This requirement grew out of the 1930's stock market crash, when companies regularly "cooked" the books. The false information that investors were relying on was a major factor in the stock market crash.

Either the audiors were very bad or they weren't very independent. By the way, "independent" auditors are paid by the company they are auditing.

I say investigate the company management and the auditors.

29 posted on 12/10/2001 8:25:55 AM PST by Strider
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Comment #30 Removed by Moderator

To: getsoutalive
There's a story about an American financial giant (someone in the Ford family, perhaps) who sold all his stock in 1929 just a few days before the market crashed. After his newspaper boy had given him a stock tip, he realized that there were too many amateurs in the market for it to have any stability.

That story comes to mind on a regular basis these days.

31 posted on 12/10/2001 8:28:15 AM PST by Alberta's Child
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To: BluH2o
This whole thing is starting to tick me off. The liberals hold all the sway in the media and their lying in an attempt to pin this on Bush.

Remember, these liars know the Nazi mantra of "tell a lie often enough and it becomes the truth".

We need to nip these lies in the bud!

32 posted on 12/10/2001 8:28:28 AM PST by LuvItOrLeaveIt
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To: BluH2o
I just wonder how many incredible fortunes were made,

by those in a position to know,

by shorting Enron? Which family members benefited?

33 posted on 12/10/2001 8:39:06 AM PST by WhiteGuy
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To: Random Access; GEC
That is exactly what I am saying. According to all the leftists, Enron should never, ever gone backrupt and should have made money off the backs of third world countries for eons to come. This just does not make sense. Could it be that the left's premises are all false?
34 posted on 12/10/2001 8:48:30 AM PST by KC_Conspirator
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To: getsoutalive
The company only gave 401k matching contributions in the form of company stock and participants were not permitted to sell until they had reached age 50.

That's true. However, since most companies don't match more than dollar for dollar on the first 6% (and that is at the very top end - most offer more in the way of $.50/$1 up to 3% or 4%), the worst it could be was a 50/50 split if one invested only enough to receive the company match and then diversified the remaining assets elsewhere. I have no sympathy for someone who put ALL their retirement assets into one company.

As for the issues regarding employees not being able to sell the stock, it is very common for assets to be "frozen" when a retirement plan is going through a significant change, and plan changes are not unusual. However, the timing of this particular change is very questionable.

35 posted on 12/10/2001 8:49:08 AM PST by Myrnick
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To: Alberta's Child
This 21-year employee is a moron. Nobody with any financial sense would have almost their entire 401(k) account invested in one company. In fact, a good financial planner will tell you that you should NEVER invest more than a token amount of money in your employer if it is a publicly-traded company.

Maybe, maybe not. I don't know what Enron's policies were, but it is increasingly common for companies that subsidize 401(k) plans to REQUIRE that a significant portion of the money be invested in the stock of their own companies. This is an artificial way of bolstering stock prices, and what happened at Enron may be an example of why this is such an intellectually (and morally) bankrupt idea.

36 posted on 12/10/2001 8:57:36 AM PST by ignatz_q
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To: lewislynn
That will be hard to do.

I followed your link to the self-proclaimed non-partisan, non-profit policy organization Texans for Public Justice. They have a list of donors to Bush's presidential bid, with their allegged faults [icons for pollution, corporate CEO, lobbyist, beneficiary of corporate welfare, etc]. They do not have a similar list for either Al Gore or Ann Richards.

They complain about the quality of life: here are a few excerpts:
Texas education has improved over the past decade but remains mired in mediocrity. Texas ranks No. 36 in teacher salaries, with more than a quarter of Texas teachers holding down second jobs. We are No. 32 in spending per student. ...
(No mention of test scores, percentage of graduates who go on to college, ...)

Just six states have a wider income disparity separating the richest from the poorest fifth of their populations.

With no state income tax, Texas ranks No. 2 in its dependency on sales taxes, which shift a heavy share of the burden to the working poor.

The Lone Star state is the nation’s leading host of gun shows, which exempt gun buyers from the normal rules requiring criminal background checks.

In other words, that source is raving lunatic liberal, and should not be relied on for any information about an alleged connection between Enron and Bush.

37 posted on 12/10/2001 9:02:44 AM PST by TennesseeProfessor
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To: WhiteGuy
Is that a Haiku?

You type weird

I think.

38 posted on 12/10/2001 9:07:09 AM PST by GraniteStateConservative
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To: BluH2o
The New York Belfer family Enron stock was worth $2 billion and now worth little--"Belfer, 66, is an Enron director..."--- The Belfers....have also been big contributors to the Democratic causes and got caught in the Clinton fund-raising controversy.".

Maybe Rep.Waxman should comment on the Belfer family.

[Houston Chronicle, "Enron loyalty costs N.Y. family billions,-Director held on to stock to bitter end," by Leslie Eaton and Geraldine Fabrikant, New York Times , Sunday, Dec 8, 2001, page 2D]

39 posted on 12/10/2001 9:17:56 AM PST by gatex
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To: BluH2o
If Bush were in cahoots with Enron, then why did they have to file for bankruptcy? Why didn't the Bush Administration prevent that from happening? For victory & freedom!!!
40 posted on 12/10/2001 9:21:35 AM PST by Saundra Duffy
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