Enron's other victims: Californians: Officials recount how trader nearly b

[UpInArms]

Officials recount how trader nearly bankrupted state

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BF5E23AF0%2DC7BD%2D43A3%2D97FC%2D7B3584F55ED9%7D&symbol=

LOS ANGELES (MarketWatch) -- Former Enron Chairman Ken Lay and former President Jeffrey Skilling may spend decades behind bars for the damage they did to the company's investors, but the two fallen executives are unlikely to face charges for damages the energy-trading behemoth caused in California.

From 2000 to 2001, the state was cast into an energy crisis of untold proportions, where rolling blackouts, giant increases in power bills and a shroud of mystery were facts of California life.

After it was proved that Enron controlled more than 80% of the state's power at the height of the crisis, and was getting double for energy what other traders earned at the time, it became apparent that the Houston-based firm was at the root of the debacle.

<snip>

He said the crisis nearly bankrupted the state; forced Pacific Gas & Electric into bankruptcy; and, to some extent, brought about the downfall of Gov. Gray Davis, the Democrat who was recalled by voters in 2003, likely bringing an end to Davis' higher political ambitions and paving the way for Arnold Schwarzenegger's governorship of the most populous U.S. state.

...more...

It's a shame that we can make all of the recipients of Enron's and Lay's money put that money back and give it to the people that have been the true victims of these crimes.

[LSparkle]

1. I'm glad we're near the end of Governator's "term"

because at last California will be able to UNDO some of the damage caused by the Lay Gang.

My boyfriend's mother was one of those "little old ladies" in the San Diego area who was BILKED by these jokers. I'm only sorry she's no longer around to see them (hopefully) headed for the clink for their crimes ...

[datadiva]

2. I know I would sure love to have my money back

My energy bills tripled and quadrupled. We had to do without a lot during that period. I still get steamed every time I think about the thieves and the people who let them get away with it.

[lyonn]

3. This story needs to be repeated repeatedly

Someone on another post mention this and the fact that Arnold figured heavily into this power outage situation. Maybe this story will keep Arnold from winning another 4 years as Gov. and out of politics forever.

[fooj]

5. It was all a set-up. From start to finish.

[fooj]

4. Yep. We Californians are doing the "happy dance" today.

[UpInArms]

9. Kenny Boy needs to be tied around Arnold's/Dimson's neck like an anchor

http://www.americaheldhostile.com/ed121101.shtml

December 11, 2001


George Bush and Kenneth Lay are old friends. Just how far that friendship goes is the question of the day. Just like Enron, is the robber baron's mentality occupying 1600 Pennsylvania Avenue? Are they creating a giant Ponzi scheme where the money is stolen from the workers (substitute taxpayers) and transferred to those at the highest level?

There's a company that a few people are trying not to talk about lately. They would prefer that no one mention this company in their presence or with their names attached to it. What relationships have been formed that would embarrass or implicate office holders or staff with the mutual use and abuse of powers that might be difficult to explain away. I am extremely interested in what those dealings meant to a vast number of Americans and non-Americans. What did it mean to the consumers of the products where price gouging and overinflation of stock value and lies of financial malfeasance occurred? What did it mean to the stockholders of shares that had been purchased in good faith; to the employees that had their retirement accounts relying upon the continuation of the company that they worked for and expended their energies in growing?

The company's name is Enron. With meteor rapidity Enron became a dominant force with which to be reckoned. Enron's CEO was Kenneth Lay. Mr. Lay's and George Bush's relationship has been lengthy and by all accounts, mutually beneficial. Mr. Lay allowed GWB to use Enron's jets for Bush's travels around the US during the election campaign of 2000. Their relationship was extremely personal, also. Exchanging Christmas cards and wives being friends. Quite chummy. Everyone should have such friends. Mr. Lay's contributions to GWB's campaign were the best. Showed exactly how much support and belief that Bush was "his man" for the presidency. Enron, Lay and Enron's CFO contributed $550,000 to GWB's presidential campaign and another $300,000 for his inaugural committee. Gee, that's a lot of green. I wonder what one gets for that much money. Looking back over the years it is fairly clear that Mr. Lay thought he would get his money's worth. A sound investment in future policy affecting his business was the intention. Or do friends pony up that much money just for fun?

<snip>

In January 2001, shortly after taking the oath of office, GWB was faced with the energy "crisis" in California. GWB's response to this "crisis" was to say that the problem was the California consumer's, not the nation's and not the energy companies that were charging $1,400 for a megawatt hour (up from $30 a year earlier). He then announced that Dick Cheney would be responsible for writing the nation's "Energy Policy." This policy was crafted in the dark, away from the prying eyes of others, with the assistance of 48 people, people inextricably tied to corporate backgrounds and energy lobbyists. There was no input from environmentalists or alternative energy sources.

<snip>

Our current administration is full of people that have strong ties to Enron. Lawrence Lindsay is Bush's top economic advisor. He was a paid financial consultant to Enron. I hope that he is giving better advise in his current position. Tom White is the Army Secretary. He was Vice Chairman of Enron Services and held $25 million in Enron stock. I hope that he understands the needs of our servicemen and women and plans positive things for their futures. Mitch Daniels is our Budget Director. He held $100,000 in Enron stock. I hope our investments are strong and that we can pay our bills in the future. Karl Rove is Bush's Chief Political Advisor. He held $100,000 in Enron stock. I hope that his advice to Bush considers all the population, not just the elite few.

...more...

[Sapere aude]

6. Cheney is complaisant in this. He said that there was nothing the fed

government could do to help out California and that the State was responsible for the crisis all the while he knew what Eron was doing. Cheney should be tried as a co-conspirator.

[Kikosexy2]

7. The recall of...

Davis and the now dubious installation of Gov. Groper and Kenny Boy now going to jail (or may be pardoned--God forbid)--this will be a perfect black eye for Gov. Groper who's seeking reelection. Gov. Groper's ascension had very much to do with Enron & Kenny Boy as Greg Palast has recently pointed out in his recent article (see Truthout.org). I can see the attack ads now against Gov. Groper...EXCELLENT!! I want a governor who knows how to govern....not some hack actor..dammit!

[noel adamson]

22. ...Gray Davis and installation of Ahhnold should be next on the court's...

...calendar. Here is a link to the truthout article by Greg Palast refereed to elsewhere in this thread; http://www.truthout.org/docs_2006/052506A.shtml

The connection between Enron and Schwarzenegger was not unknown prior to the crooked recall. When the D.A. here in Humboldt County sued Pacific Lumber they similarly invested millions to launch a "grass roots" recall which failed and, in the process made it clear to many more people just how extreme corporate corruption of our democratic processes has become.

We have a ballot measure on the June 6th ballot to ban out of county corporate money from local politics all together and there is hope this will set a precedent if it is approved which seems very likely at this point.

http://www.votelocalcontrol.org/

Corporate fascism, having been given enough rope, will succumb to it's own short sighted greed and avarice. Unfortunately the damage is largely already done.

[partylessinOhio]

8. What about the other victims of Enron?

The clients
The investors
The private pension plans
The state pension plans, Ohio PERS lost millions
The elderly
The poor
Those still paying inflated utility costs

[wellst0nev0ter]

10. Remember When They Called Them "Gray-outs"?

Gray Davis has got to be out there somewhere laughing.

[UpInArms]

13. Palast: California Got Lay'd

http://www.gregpalast.com/detail.cfm?artid=282&row=1

According to a series of memoranda our office obtained today, Arnold Schwarzenegger has much to explain about his dalliance with the boys in a hotel room two years ago.

The wannabe governor has yet to deny that on May 17, 2001, at the Peninsula Hotel in Los Angeles, he had consensual political intercourse with Enron chieftain Kenneth Lay. Also frolicking with Arnold and Ken was convicted stock swindler Mike Milken.

Now, thirty-four pages of internal Enron memoranda have just come through this reporter's fax machine tell all about the tryst between Maria's husband and the corporate con men. It turns out that Schwarzenegger knowingly joined the hush-hush encounter as part of a campaign to sabotage a Davis-Bustamante plan to make Enron and other power pirates then ravaging California pay back the $9 billion in illicit profits they carried off.

Here's the story Arnold doesn't want you to hear. The biggest single threat to Ken Lay and the electricity lords is a private lawsuit filed last year under California's unique Civil Code provision 17200, the "Unfair Business Practices Act." This litigation, heading to trial now in Los Angeles, would make the power companies return the $9 billion they filched from California electricity and gas customers.

<snip>

The pay-off? Once Arnold is Governor, he blesses the sweetheart settlements with the power companies. When that happens, Bustamante's court cases are probably lost. There aren't many judges who will let a case go to trial to protect a state if that a governor has already allowed the matter to be "settled" by a regulatory agency.

...more...

so how did that suit turn out? (or is this a different one?)

Saturday, July 16, 2005

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/07/16/BUGR8DOQTS1.DTL

Enron Corp., whose energy traders bragged about stealing money from "Grandma Millie" in California, has agreed to pay $1.52 billion to California and other Western states to settle claims of price gouging during the 2000-01 energy crisis.

"Grandma Millie can feel vindication. We've been fighting for her rights, " said California Attorney General Bill Lockyer, who filed a lawsuit against the energy trader after audiotapes emerged of its traders chortling over schemes called "Death Star," "Fat Boy'" and "Get Shorty" that drastically drove up energy prices during the crisis.

<snip>

Under the settlement, California would receive $47.5 million in cash, plus an $875 million unsecured claim in Enron's bankruptcy proceeding. Washington and Oregon would each get $22.5 million out of that unsecured claim. Unsecured claims against Enron are being settled at the rate of about 22.8 cents on the dollars.

In addition, the three states would receive a combined $600 million penalty, which would be a subordinated claim -- lower down the chain of who gets paid what in the bankruptcy.

"This kind of settlement requires us to use a microscope to actually see the money," said Michael Shames, head of Utility Consumers Action Network in San Diego.

...more...

[Sapere aude]

11. Why can't we go after the stockholders who benefited from this?

They made trades based on the inflated prices and made out well. Can't we make them give the money back? Can't we trace this to anyone who profited off of this and make them pay it back?

This is the legacy this administration will leave us. None of us will recover from the loss and it will take years to fix everything provided we can take the reins of power away from the Repubs.

[Bridget Burke]

23. Those who held on to their Enron stock until the end....

Did not profit.

Only the executives knew enough to dump their stock in time.

[Sapere aude]

12. Do you suppose this will be the lead story in Faux News tonight?

"Bush's pal Kenny Boy with the help of the vice president bilked California out of billions of dollars and which it will never recover Fox News reports tonight."

[Journeyman]

14. The Energy Pirates destroyed a friend's market in the Central Valley. . .

He couldn't keep the doors open it cost so much to keep the food cool. Eventually had to shutter the store, lost his investments, and put about two dozen people out of work in the one of the poorest rural regions of the State.

Now that Lay and Skilling have been found legally culpable, let's dispense with the formalities of incarceration and simply horsewhip 'em in the dusty streets of Laredo, strip the flesh from their bones and leave them to rot in the sun, just like they left so many, many people in the wake of their criminal enterprise. Three hots and cot is more than they left their victims and infinitely better than they should receive.

[NYC]

16. And that is just one example.

Irreparable harm.

[Journeyman]

18. Yes. Some of the most vulnerable among us were killed. . .

by those Pirates' greed. . . Whatever happens will be too good for them. . .

[depakid]

15. California screwed iteself

with the help of the vast majority of its Democratic legislators.

Progressive groups WARNED the legislators repeatedly- and to the extent anyone would listen- the people of the state- what would happen if they enacted that insane "deregulation" scheme.

Instead, the Democratic legislature passed the bill overwhelmingly with very little public debate.

Who did they think was going to protect them from predators like Enron, Duke, Dynergy, et al.?

Congress? Clinton's FERC? LOL.

Oregon also got screwed big time by Enron because of our gutless PUC.

Just goes to show you what happens when Dems roll over and embrace Republican policies.

[LanternWaste]

17. I'm a baa-aaad boy

I worked in a warehouse job while the grey-outs were going on(1997?). The owner and his freeper family had AM talk radio (yeah.. Rush, too) playing all day long. What stands out in my memory is the constant repetition of the phrase "Clinton has no energy plan! Clinton has no energy plan!"

My own guilty pleasure is when one of them calls me for dinner or a game of poker these days and I answer the phone with, "Bush has no energy plan!" The hesitant pause on the other end is both priceless and one of my favorite indulgences... yeah, I'm a baa-aaad boy.

But I still get a bit riled up thinking about how AM radio usurped the truth from the owner.

[Coastie for Truth]

19. Tom Oliphant was on Al Franken today (5/25)

Oliphant made the following points-

• California oil prices were deliberately manipulated.
  
• Purpose was to discredit Gray Davis (and drive him from office)
  
• Ken Lay met with Arnold Schwarzenegger
  
• Some economists, big time money managers and venture capitalists
  • Blame the Enron manipulation of the California Energy Market for the Dot.Com crash.
    
  • A large sub-set of those same economists, big time money managers and venture capitalists blame the Enron manipulation of the California Energy Market for the subsequent recession -- and bankruptcies and layoffs and foreclosures (and consequent loss of US IT supremacy

As I see it - what started out as an Ken Lay-George Bush game to unseat Gray Davis and move the center of gravity of the IT industry from Silicon Valley to Austin -- over shot its mark --> sent IT to China and India without any concomitant benefits for Austin. (I've been saying that since the electric crisis)

[Generic Other]

20. Ken's letters to Bush: Stroll down memory lane

http://www.thesmokinggun.com/archive/0708042lay1.html

[lindisfarne]

21. Wasn't the entire west coast affected to some degree?

[Bridget Burke]

24. The entire country was affected to some degree.

For example, rising energy costs led to tuition increases in Texas universities. (Only one of the reason Houstonians were celebrating last night!) Of course, California got the worst of it. Except for Los Angeles:

Published on Wednesday, June 6, 2001 in the San Francisco Chronicle
Los Angeles Power Customers Awash in Cheap Energy
by John Wildermuth

These are flush times for the city's Department of Water and Power and the energy executives are loving every minute of it. As are their customers.

Private power companies throughout California have been raising rates and warning customers about a long, hot summer filled with blackouts, but the city- owned DWP has been keeping prices stable and the lights on for 1.2 million Los Angeles customers......

Los Angeles power officials -- and their customers -- know the DWP isn't always going to continue as an island of tranquility in a sea of energy turmoil. The utility's aging gas-fired plants have been affected by the rising price of natural gas. Demand for energy continues to rise. In a debate last month, both candidates for mayor of Los Angeles agreed that increases in local power bills are inevitable.

But the DWP has been supplying power to Los Angeles since 1916, and its executives believe that the state's deregulation disaster has shown the advantages of the city-owned utility.

"It's nice to be the lean, mean, green efficient machine that no one ever expected us to become," Galiteva said.

www.commondreams.org/headlines01/0606-01.htm

Some good ideas for all of us.