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Lay may testify
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February 8, 2002: 3:29 p.m. ET
Former Enron CEO will show up for hearings, but there is no guarantee he'll talk.
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NEW YORK (CNN/Money) - Kenneth Lay, the former CEO of Enron Corp., may testify before lawmakers investigating the energy trader's collapse, rather than taking Fifth-Amendment protection, as several other former Enron executives have done.
Senator Byron Dorgan, D-N.D., said Friday that Lay's attorneys had told the Senate not to expect Lay to assert his Fifth Amendment right to avoid self-incrimination by refusing to testify. Although this isn't an iron-clad guarantee that Lay will talk, Dorgan expressed cautious optimism.
"I don't know whether Ken Lay is going to testify. What I do know is that his attorneys have told us that we should prepare for a hearing in which he will testify," Dorgan told CNNfn's Money Gang program.
Houston-based Enron filed the largest bankruptcy in United States history. Once the seventh-largest company in America, Enron is currently under investigation by the Justice Department, the Securities and Exchange Commission and nine congressional committees.
Lay is under subpoena to appear before the Senate Commerce Committee next Tuesday. Last week, he volunteered to testify, but then changed his mind and withdrew his offer.
It's still possible that Lay could take the Fifth on Tuesday, and a Lay spokeswoman told CNN/Money he hasn't yet made up his mind about what he will do. Details
In other Enron developments:
Lay's predecessor as Enron CEO, Jeff Skilling, testified before the House Energy and Commerce Committee Thursday, saying he was unaware of any accounting practices designed to hide debt or make the company look more solvent than it really was.
"When I left on Aug. 14 [2001], I thought the financial reports accurately represented the financial [state] of the company," Skilling said. Details
Skilling's testimony conflicted somewhat with that of new Enron chief operating officer Jeff McMahon, who told the House earlier Thursday that he had expressed concerns to Skilling in March 2000 about the company's handling of some of its special purpose entities (SPEs), which were used to move assets and liabilities off Enron's books.
McMahon, who was the company's treasurer in March 2000, said that he had been concerned about the conflict of interest of having former Enron chief financial officer Andy Fastow - McMahon's boss - representing the SPEs in negotiations with Enron.
"I find myself negotiating with Fastow on Enron matters and am pressured to do a deal that I don't believe is in the best interest of [Enron's] shareholders," McMahon wrote in "talking points" he prepared for a meeting with Skilling.
Shortly after that meeting, McMahon was transferred to another unit of Enron. Skilling disagreed with McMahon's characterization of his concerns, saying McMahon only seemed worried about his compensation.
And Enron's former in-house lawyer Jordan Mintz testified Thursday that he repeatedly tried to talk to Skilling about the same conflicts but was consistently rebuffed.
No such dramatic testimony was forthcoming from Fastow or several other former Enron executives, however; they all took the Fifth when appearing before the House on Thursday. Details
Lawmakers widely scoffed at Skilling's claims of ignorance in Thursday's hearing, and the internal report by a committee of Enron's board, headed by University of Texas Law School Dean William Powers, said Skilling had "substantial responsibility" for the accounting irregularities that led to Enron's collapse.
Legal experts saw Skilling's appearance as a good public relations move, but an extremely risky legal maneuver. Details
A leading U.S. Congressman expressed doubts on Thursday about former Enron CEO Jeffrey Skilling's testimony on Capitol Hill, and he added that new laws may be needed to help prevent another Enron-style collapse.
Rep. Jim Greenwood, R-Pa., who appeared on Lou Dobbs Moneyline, said "it was very difficult to believe he [Skilling] was completely forthcoming with us." Details
Creditors of failed Enron Corp. have asked a New York bankruptcy court to force the energy trader and various other companies -- including PricewaterhouseCoopers and Vinson & Elkins -- to produce documents and witnesses related to Enron's use of off-the-book partnerships to conceal debt.
The Official Committee of Unsecured Creditors asked a New York bankruptcy court Thursday to see the records of more than 50 Enron partnerships and special purpose entities, including LJM Cayman LP, Chewco Investments LP and Joint Energy Development Investments LP (JEDI). Details
The law firm that has filed a class-action suit representing Enron employees - many of whom lost their retirement savings, much of which were tied up in Enron stock, when Enron collapsed - plans to ask a federal judge to remove Enron executives as trustees of the company's retirement plan.
The Gottesdiener law firm said Friday it will ask Federal District Court Judge Melinda Harmon to remove the executives in charge of the company's 401(k) plan "based on new disclosures that they failed to act to save workers' investments when they knew Enron was headed for disaster." Details
You knew it had to happen eventually: A made-for-TV movie about the Enron debacle is in the works.
Cable station FX and Artisan Television are developing the project, the Associate Press reported Friday, with former 60 Minutes producer Lowell Bergman consulting.
Understandably, FX said it will wait for "some closure in real life" before going ahead with production of the movie. Details
Former Enron CEO Kenneth Lay has sold a minority stake in the Houston Texans football team, Robert McNair, team Chairman and CEO, told CNNfn. The stake is believe to be worth at least $7 million, press reports said.
Lay and his wife are also selling several houses they own in Aspen, Colo., Houston and Galveston, Texas. The Lays are selling assets to meet financial obligations in the wake of Enron's collapse, Reuters reported. 
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