NYT: Enron Ex-Treasurer Says Lay Endorsed Accounting

[DeepModem Mom]

Enron Ex-Treasurer Says Lay Endorsed Accounting
By ALEXEI BARRIONUEVO and VIKAS BAJAJ
Published: March 22, 2006

HOUSTON, March 22 — A former Enron treasurer testified today that Kenneth L. Lay presided over meetings in which top executives discussed the energy company's precarious finances and endorsed the continued use of complex accounting arrangements because they made it possible for Enron to meet Wall Street's earnings expectations.

Ben F. Glisan Jr., the former treasurer, provided some of the strongest testimony against Mr. Lay heard by the jury so far, as the prosecution entered the home stretch of its case against Mr. Lay, Enron's former chairman, and Jeffrey K. Skilling, the company's former chief executive. The government expects to finish its case by the end of the month.

Corroborating previous testimony by several witnesses, Mr. Glisan detailed several meetings from the months leading up to the energy company's bankruptcy in late 2001, in which executives scrambled to shore up the company's shaky finances while Mr. Lay continued to publicly tout Enron as a stable and successful operation.

At one point, Mr. Glisan testified that Mr. Lay assigned him to "feel out" credit ratings analysts to see how big an accounting charge the company could take without risking a debt downgrade, a figure he said he determined was $1 billion.

"It was backwards; we should have taken the charges that we needed to take and deal with the consequences with the ratings agencies," said Mr. Glisan, who has served about half of a five-year prison sentence for falsifying Enron's financial results....

http://www.nytimes.com/2006/03/22/business/businessspecial3/22cnd-enron.html?hp&ex=1143090000&en=4ca6c06cb353526a&ei=5094&partner=homepage

[napi21]

1. Why isn't there any more info about what's going on in this trial?

I realize it's a Fed Court and can't be televised, but I'd LOVE to see some transcripts. I want to hear what the defense is asking these witnesses, and what they answered. Hearing just a snippit every now and then doesn't give me any feel for how this trial is really going. From everything I've read so far, it sounds like Kenny Boy is headed for a long Federally sponsored retirement, but I know how difficult finance hanky panky issues can be to prove.

[Zen Democrat]

2. The Houston Chronicle has extensive coverage of the trial ---

http://www.chron.com/news/specials/enron/

[DeepModem Mom]

3. Thanks, Zen! nt

[napi21]

4. Thanks. I guess it does pay to look where the trial is being held.

I didn't think to check the Houston paper. I hoped it would be National News!

[0007]

12. One would certainly think that this would be national news,

especially since Kenny "Boy" is a close friend of the Bush family. Much closer than Claude Allen or Jack Abramoff.

[napi21]

9. I know I thanked you once, but that was before I went to your link.

That information is EXACTLY what I've been looking for. I've only spent about 1/2 hour so far, but the posters even give descriptions of how well they believed a witness did and if it appeared clear to the jury!

THANK YOU SOOOOO MUCH!

[wordpix2]

5. I really hope Kenny Boy spends the rest of his days in jail

[WhiteTara]

6. I am so looking forward to KennyBoy

spending time in prison.

[Midnight Rambler]

7. "Kenny Boy" is going to be an unfortunate nickname on the inside

Couldn't happen to a nicer guy

[Justice]

8. do you think Lay and Skilling will be convicted?

just asking b/c you don't hear too much.

I think if they are - they will also appeal and have their sentencing delayed until appeals are exhausted.

[DeepModem Mom]

10. I wonder. You might ask Zen Democrat, who posted in post 2...

the information that the Houston Chronicle has a lot of information on the trial.

[Yupster]

11. Have to hear the defense before

you can really make any judgement.

Reports I'm reading every day is that the prosecution is doing well, but you can't tell anything until the defense gets their chance.

It's a complicated case and there are plaenty of tactics the defense can use.