Comments on: Thinking about Jeff Skilling http://www.coyoteblog.com/coyote_blog/2008/09/thinking-about.html Dispatches from a Small Business Mon, 22 Mar 2010 05:40:24 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: John David Galt http://www.coyoteblog.com/coyote_blog/2008/09/thinking-about.html/comment-page-1#comment-13663 John David Galt Wed, 01 Oct 2008 04:39:45 +0000 http://coyote-blog.com/wordpress/2008/09/thinking-about.html #comment-13663 <p>I like that Freudian slip, "presecution". In this case at least, prosecution IS persecution.</p> I like that Freudian slip, “presecution”. In this case at least, prosecution IS persecution.

]]> By: Cara Ellison http://www.coyoteblog.com/coyote_blog/2008/09/thinking-about.html/comment-page-1#comment-13662 Cara Ellison Thu, 18 Sep 2008 01:12:44 +0000 http://coyote-blog.com/wordpress/2008/09/thinking-about.html #comment-13662 <p>THANK YOU for writing this; I simply haven't the patience anymore to try and reason out why Enron was chosen to be criminalized as every one of these other companies are either allowed to fail without a whisper of wrong-doing or are bailed out by the gov. I am glad that Enron is being used as a counter-example by smart people like yourself when analysing the current fiasco.</p> THANK YOU for writing this; I simply haven’t the patience anymore to try and reason out why Enron was chosen to be criminalized as every one of these other companies are either allowed to fail without a whisper of wrong-doing or are bailed out by the gov. I am glad that Enron is being used as a counter-example by smart people like yourself when analysing the current fiasco.

]]> By: Preston Tucker http://www.coyoteblog.com/coyote_blog/2008/09/thinking-about.html/comment-page-1#comment-13661 Preston Tucker Mon, 15 Sep 2008 09:55:46 +0000 http://coyote-blog.com/wordpress/2008/09/thinking-about.html #comment-13661 <p>Interesting question and analogy. And more interesting still, at least it must be from Skilling’s perspective, is the fact he wasn't the one who was in what we now know was the impossible position of reassuring the markets in order to stave off the crunch. Skilling left in mid-August and his Enron Wholesale had continued to go gangbusters through the end of the third quarter and indeed deep into the fourth quarter. The crisis of confidence didn't start until after the October 16, 2001 earnings conference, when Enron announced write-offs that seem silly-small in light of those the markets have been dealing with in this past year. </p> <p>Tellingly, lead Skilling/Lay accusser and government cooperator Andy Fastow, when asked about Lay telling analysts on October 23 that Enron's liquidity was "strong," told the Enron prosecutors he thought the statement was "fair given what [he] knew." And he, as CFO, would have been the person who knew. It is no surprise, then, that the prosecutors didn't disclose that statement to Skilling and Lay prior to their trial, as it would have directly contradicted the government’s presentation against them. No surprise, perhaps, but that failure to disclose -- along with dozens, maybe hundreds of other examples -- violated Skilling and Lay's constitutional rights.</p> <p>Seems time to revisit the myth of crimes by Enron, before a bunch more innocent folks are thrown in jail. <br /> </p> Interesting question and analogy. And more interesting still, at least it must be from Skilling’s perspective, is the fact he wasn’t the one who was in what we now know was the impossible position of reassuring the markets in order to stave off the crunch. Skilling left in mid-August and his Enron Wholesale had continued to go gangbusters through the end of the third quarter and indeed deep into the fourth quarter. The crisis of confidence didn’t start until after the October 16, 2001 earnings conference, when Enron announced write-offs that seem silly-small in light of those the markets have been dealing with in this past year.

Tellingly, lead Skilling/Lay accusser and government cooperator Andy Fastow, when asked about Lay telling analysts on October 23 that Enron’s liquidity was “strong,” told the Enron prosecutors he thought the statement was “fair given what [he] knew.” And he, as CFO, would have been the person who knew. It is no surprise, then, that the prosecutors didn’t disclose that statement to Skilling and Lay prior to their trial, as it would have directly contradicted the government’s presentation against them. No surprise, perhaps, but that failure to disclose — along with dozens, maybe hundreds of other examples — violated Skilling and Lay’s constitutional rights.

Seems time to revisit the myth of crimes by Enron, before a bunch more innocent folks are thrown in jail.

]]> By: Bob Smith http://www.coyoteblog.com/coyote_blog/2008/09/thinking-about.html/comment-page-1#comment-13660 Bob Smith Sat, 13 Sep 2008 04:59:58 +0000 http://coyote-blog.com/wordpress/2008/09/thinking-about.html #comment-13660 <p>It's rather bizarre that Fannie's executives haven't been charged with fraud. At a minimum, they should have been ordered to disgorge bonuses earned as a result of their bogus financial statements.</p> It’s rather bizarre that Fannie’s executives haven’t been charged with fraud. At a minimum, they should have been ordered to disgorge bonuses earned as a result of their bogus financial statements.

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