Enron investors to split billions from lawsuit

[Thor_MN]

Source: CNN.com

NEW YORK (CNN) -- In the largest settlement in the history of U.S. securities fraud cases, Enron shareholders and investors will split more than $7.2 billion from financial institutions accused of playing a role in the energy giant's downfall.

Investors will get an average of $6.79 per share of common stock and an average of $168.50 per share of preferred stock," Newman said.

The settlement includes payments of $2.4 billion from CIBC, $2.2 billion from JPMorgan Chase and $2 billion from Citigroup, according to court documents. Smaller amounts come from Arthur Andersen, Lehman and Bank of America.




Read more: http://www.cnn.com/2008/US/09/09/enron.settlement/index.html

[bluestateguy]

1. The lawyers will split a lot more

After all the splitting up is done, I'd be surprised if the ex-Enron investors have enough to go to the movies on a Saturday night.

[ben_meyers]

3. The lawyers are only getting 688 million

and they are big Democratic contributors, so it's all for a good cause.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aakdO2wIq9xU&refer=worldwide

[Phred42]

2. What about the grandmothers that got screwed in their homes?

[Baby Snooks]

4. At least they got that...

The reality is that at least they will get something back. I can't remember what the preferred shares were averaged at but I think the common shares were averaged at $45 so the investors who held common shares will be getting 1/5 to 1/6 of their investment back. I think that's more than the World Com and MCI investors got back.

What I have always questioned is the bankruptcy. The assets were sold quickly. Some of which potentially would have recouped all the losses. And of course you have untold millions that the "unindicted co-conspirators" walked away with. Many of them friends of the Fastows and many of them having invested in what some referred to as "Lea's Wheel of Fortune" in which her girlfriends invested $25,000 and walked away with $1,000,000 six months later. The criminal investigation only focused on the Fastow limited partnerships. There were over 2,000 limited partnerships involved with Enron. The Justice Department never really looked at the other ones. Or disclosed who the "partners" were. Or more importantly where that money went. Or even more importantly how much money was involved.

The whole thing was a scam. Still is.

[Tutonic]

5. Yeah for most folks that will average out to about $3.69. Who wants gas?

[Javaman]

6. what of the retiree's that lost their pensions? nt