Feds, Big Banks Reach Enron Settlement

[LauraK]

NEW YORK (Reuters) - The Securities and Exchange Commission on Monday said that J.P. Morgan Chase & Co. and Citigroup Inc. would pay $135 million and $120 million, respectively, to resolve an investigation into charges that the banks helped bankrupt Enron Corp. mislead investors by disguising loans as revenue.

The settlement will allow the two banks to avoid prosecution but will force them to alter some business practices. The banks neither admitted nor denied the SEC's findings. ..

The agreement settles SEC charges that both banks aided Enron in misleading investors by dressing up loans as operating activity. J.P. Morgan's practice of setting up circular energy trades for Enron, with the net effect of a loan, was well-documented in a court case between J.P. Morgan and its insurers last year.

As part of the agreement, Citigroup also settled SEC charges that it helped another energy merchant, Dynegy Inc., manipulate financial statements.

Under the whole agreement, $19 million of the settlement money will go to fraud victims of Dynegy, while $236 million will go to Enron victims.

More here

[dArKeR]

1. Banks Fined $255M In Enron Scam - CBS

http://www.cbsnews.com/stories/2003/07/28/national/main565467.shtml

[dArKeR]

2. Thus Gov. Davis of CA was defrauded in this GOP scheme too?

Was CA energy fraud perpetrated by Ken Lay and his best friend George Bush to destablize and slander Gov. Davis with the objective in mind to take the CA governorship? Why aren't the SEC, FEC, Fineman, Woodward, Russert... investigating this?

(And Clifford J. Baxter was murdered to cover it up)

http://www.apfn.org/enron/baxter.htm

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2002/01/27/wenron27.xml