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Lay resigns from Enron board
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February 4, 2002: 2:06 p.m. ET
Lawmakers plan to subpoena Lay to compel him to appear before Congress.
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NEW YORK (CNN/Money) - Kenneth Lay, the former CEO of Enron Corp., resigned from the company's board Monday as lawmakers plan to subpoena the executive and compel him to appear before Congress.
Lay blamed the multiple inquiries and investigations into Enron, some of which are focused on him personally, for his resignation. The probes are becoming too much of a distraction for Lay and preventing him from achieving his goal of seeing Enron survive, he said.
"My concern is for current and former Enron employees and other stockholders, and I feel it is in their best interest for me to step down from the board," Lay said.
Lay resigned as Chairman and CEO of Enron on Jan. 23.
Meanwhile, Sen. Fritz Hollings, D-S.C., chairman of the Senate Commerce Committee, said Monday that the committee will convene Tuesday to "get authority" to subpoena Lay. If compelled, Lay will appear before Congress on Feb. 12.
Lay abruptly backed out Sunday of his much anticipated appearance before the Senate Commerce Subcommittee. Earl Silbert, Lay's attorney, sent a letter to Committee Chairman Hollings saying the hearings have a "prosecutorial tone" and Lay "cannot be expected to participate in a proceeding in which conclusions have been reached before Mr. Lay has been given the opportunity to be heard."
The subcommittee called off their hearing Monday after Lay canceled his appearance. The capital markets subcommittee of the House Financial Services panel, which did go ahead with its hearing as planned, granted its leadership authority to issue a subpoena to compel Lay to appear, a source familiar with the situation told CNN/Money. But the subcommittee has yet to subpoena Lay, the source said.
While a subpoena would force Lay to appear before Congress, the executive could still refuse to testify. Lay could invoke his Fifth Amendment right against self-incrimination and remain silent at the hearing. If adopted, Lay would follow a route set by fired Andersen auditor David Duncan who appeared before Congress in January and refused to testify.
Other former Enron executives are still on tap to testify this week. Former CEO Jeff Skilling is set to appear Thursday before the House energy and Commerce subcommittee on oversight and investigation, a committee spokesman said Monday. Andrew Fastow, former Chief Financial Officer and Senior Vice President at Enron, will also appear at the hearing. 
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