graphic
graphic  
graphic
News > Companies
graphic
Enron faces SEC probe
graphic October 22, 2001: 1:19 p.m. ET

SEC asks energy trading firm to provide information on certain transactions.
graphic
graphic graphic
graphic
graphic
graphic       graphic
  • Enron takes charge from partnership - Oct. 19, 2001
  •  
    graphic
    graphic
    graphic       graphic
  • Enron
  •  
    graphic
    NEW YORK (CNNmoney) - The Securities and Exchange Commission has requested information from Enron Corp., reportedly concerning a partnership organized by the company's chief financial officer.

    Enron confirmed Monday it received a request from the SEC last week for information on regarding "certain related party transactions."

    Shares of Enron (ENE: down $5.30 to $20.75, Research, Estimates) fell more than 20 percent in afternoon trading on the New York Stock Exchange.

    Last week it was reported that a partnership organized by Enron's chief financial officer, Andrew Fastow, generated millions of dollars in profits from transactions with the Houston-based energy trading company, which resulted in Enron losing $1.2 billion in market equity.

    "We welcome this request," Enron's Chairman and CEO Kenneth Lay said. "We will cooperate fully with the SEC and look forward to the opportunity to put any concern about these transactions to rest."

    The SEC declined to comment.

    graphic  
    Enron's most notable transaction with the partnership, LJM2 Co-Investment LP, involved the partnership's purchase of 55 million Enron shares in exchange for a note, with the aim of hedging against certain technology investments. When the value of Enron's stock and the investments dropped, Enron repurchased the shares at the lower price and cancelled the partnership's note.

    An Enron spokesman said the company is unable to go into specifics about when the information will be provided, or how long the process is expected to take, but said all transactions have been fully reported by the company to the SEC.

    The Houston-based company said its auditors, attorneys and board reviewed and approved the "related party arrangements," and they were disclosed in its SEC filings. "We believe everything that needed to be considered and done in connection with these transactions was considered and done," Lay said. graphic

      RELATED STORIES

    Enron takes charge from partnership - Oct. 19, 2001

      RELATED LINKS

    Enron





    graphic graphic


    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

    graphic