Robert Scheer: ENRON ENABLERS (how revolving door made it possible)

[yurbud]

http://www.thenation.com/doc/20060213/scheer0201

Truthdig | posted February 1, 2006 (web only)

Enron's Enablers

Robert Scheer

Indeed, the larger crime, in any proper moral dimension of that word, was committed in the rewriting of the law on corporate regulation to permit Enron's very existence as a humongous stock market swindler. There simply would be no Enron story were it not for the deregulation of the energy market ushered in by Republican politicians, as Lay himself acknowledged freely in a 2000 interview when asked to explain the "common thread" in Enron's business model.

"I think the common elements first are that, basically, we are entering markets or in markets that are deregulating or have recently deregulated, and so they have become competitive, moving from monopoly franchise-type businesses to competitive, market-oriented businesses," said Lay.

Enron's domination of those deregulated markets was made possible, to a large degree, through the work of the powerful Washington couple, Phil Gramm, then-Republican senator from Texas, and his wife, Wendy, then-chair of the Commodities Futures Trading Commission (CFTC). Perhaps predictably, neither Gramm has been charged with any crimes in connection with the Enron scandal, and both are barely mentioned in the two leading books on the scandal by New York Times business writers. But their antics, well documented by the leading public-interest watchdog group Public Citizen, are the key to understanding the Enron debacle.

Back in 1993, when Enron was an upstart energy trader and Wendy Gramm occupied the position of chair of the CFTC, she granted the company, the biggest contributor to her husband's political campaigns, a very valuable ruling exempting its trading in futures contracts from federal government regulation.


She resigned her position six days later, not surprising given that she was a political appointee and Bill Clinton had just defeated her boss, the first President Bush. Five weeks after her resignation, she was appointed to Enron's board of directors, where she served on the delinquent audit committee until the collapse of the company.

http://www.thenation.com/doc/20060213/scheer0201