WASHINGTON – As part of his ongoing investigation into whether federal regulatory agencies could have done more to protect the thousands of people who suffered as a result of Enron?s collapse, Governmental Affairs Committee Chairman Joe Lieberman, D-Conn., Wednesday called upon the White House to disclose contacts it had with the failed company.
In letters dated Wednesday, March 27, 2002, Lieberman asks the White House and the U.S. Archivist for all communications with Enron, dating back to 1992, regarding eight agencies, communications with any federal agency regarding the eight agencies, and contacts with Enron regarding the national energy policy. The agencies are: The Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Energy Regulatory Commission, the Departments of Labor, Energy and Commerce, the Export Import Bank, and the Overseas Private Investment Corporation.
Lieberman also sent letters to members of the Vice President?s energy task force asking for their contacts with Enron regarding the national energy policy.
The requests cover both the Clinton and George W. Bush administrations.
?As our inquiry into the Enron debacle has unfolded, we’ve learned that too many watchdogs failed to bark, ? Lieberman said. ?I will not hesitate to ask for anything that helps us to investigate as thoroughly as possible what the federal government might have done to prevent, or at least anticipate, Enron?s demise, and whether there are steps we can take to avoid another corporate failure of this magnitude in the future. A broad inquiry of this sort demands that contacts between the White House and these agencies be reviewed.?
The expanded request comes on the heels of Lieberman?s examination into the role played by various regulatory agencies and private sector watchdogs. He has presided over four hearings that included probes of the 401(k) retirement issue, and of the failure of the Wall Street analysts and credit rating agencies to anticipate Enron?s collapse.
On February 15, the Committee subpoenaed Enron and Arthur Andersen LLP for their contacts with the SEC, FERC, CFTC, and DOL. Those agencies were also asked for their contacts with Enron.
Subsequently, on March 22, the Committee authorized subpoenas for Enron and Andersen for additional information concerning Enron?s communications with the White House about the aforementioned eight agencies. Subpoenas were also authorized for 27 past and current members of Enron?s Board of Directors for their communications with the White House about the eight agencies and about the Vice President?s energy task force.
The Committee?s Permanent Subcommittee on Investigations, meanwhile, has issued 51 subpoenas in an effort to discover what business practices may have contributed to the company?s demise.
Lieberman Letters to White House, Energy Task Force, Agencies for Enron Contacts
Andrew H. Card Jr.
Chief of Staff
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500
Dear Mr. Card:
The collapse of Enron Corporation has served as a wake-up call for the nation?s employees, investors and its governmental leadership. When Enron filed for bankruptcy in December 2001, it marked the largest corporate failure in United States history. But it is not merely the magnitude of the collapse that makes this a matter of significant public concern. Rather, what is particularly troubling is the extent to which Enron?s unraveling appeared to catch the regulatory and financial communities unaware.
The rapid collapse of what was once ranked as the nation?s seventh largest company demands public scrutiny. Given Enron?s size, its bankruptcy financially imperils thousands of employees, as well as a far broader universe of shareholders. Just as importantly, it threatens to undermine public confidence in the market system, which depends on investors buying and selling stock based on honest reporting and fair appraisals of a company?s worth.
In the wake of Enron?s financial demise, the public has been asking many questions ? not only about whether employees and shareholders can rely on the market to offer them fair and complete information about companies in which they wish to invest, but also whether they can depend on the government to protect them against wrongdoing by corporate and market insiders.
Pursuant to its jurisdiction to investigate the efficiency and economy of operations of all branches of the government (S. Res. 54, 107th Congress), the Senate Governmental Affairs Committee is seeking to answer some of those questions. The Committee is trying to find out whether the various federal agencies charged with overseeing or regulating part of Enron?s business could have done something to detect or prevent the problems that led to the company?s downfall and the losses of thousands of jobs and billions of investors? and employees? dollars. What oversight did federal regulators provide to Enron?s activities? Was there more that could or should have been done to avert the collapse? Do agencies need additional authorities to be able to help provide effective oversight?
With regard to the Executive Office of the President, the Committee seeks the information outlined below. Please interpret the term ?EOP? to include the Executive Office of the President and all of its units and all of their officials, employees and representatives, including the President and Vice President of the United States. Please interpret the term ?Enron? to include Enron Corp., Enron Capital Trust I, and Enron Capital Trust II; their officers, directors, employees, and representatives, including anyone purporting to act on their behalf; and each of their affiliates, subsidiaries, partnerships, special purpose entities, joint ventures, trusts or any other entity in which Enron Corp., Enron Capital Trust I, or Enron Capital Trust II is or was a shareholder, partner, investor, trustee, or member. In addition, please interpret the term ?communications? to mean all communications, whether written, oral, electronic, in-person or through any other means. Finally, when identifying individuals in response to these questions, please give their full name, title and the company, agency, or EOP office for which they work(ed).
1) a) Please list all communications from January 1, 1992 to December 2, 2001, between Enron and the EOP concerning compliance with, interpretation of, exemption or waiver from, changes to, enforcement of, or any other action with respect to the laws, regulations and policies administered or enforced by each of the following agencies; or concerning loans, loan guarantees, insurance or other financial assistance from these agencies; or otherwise referring or relating to these agencies, any part thereof, or any of its officials, employees or representatives, including the selection thereof:
i) U.S. Securities and Exchange Commission
ii) U.S. Commodity Futures Trading Commission
iii) U.S. Federal Energy Regulatory Commission
iv) U.S. Department of Labor, insofar as the communication also relates to the regulation and oversight of qualified savings plans covered by ERISA or to deferred compensation plans or other retirement, savings, or benefit plans, programs or funds
v) the U.S. Department of Commerce
vi) the U.S. Department of Energy
vii) the Overseas Private Investment Corporation
viii) the Export-Import Bank of the United States.
b) For each communication listed in response to paragraph 1a, please identify the following:
i) For any meetings, whether in-person or through telephone or videoconferencing:
a. who initiated the meeting
b. all those who were present at the meeting
c. the subject matter(s) of the meeting
d. the date of the meeting
ii) For all other communications:
a. the sender(s) of the communication
b. the recipient(s) of the communication
c. the date of the communication
d. the subject matter of the communication
2) a) Please list all communications from January 1, 1992 to December 2, 2001, between the EOP and any official, employee or representative of any federal department or agency referring or relating to Enron and concerning compliance with, interpretation of, exemption or waiver from, changes to, enforcement of, or any other action with respect to the laws, regulations and policies administered or enforced by each of the following agencies; or concerning loans, loan guarantees, insurance or other financial assistance from these agencies; or otherwise referring or relating to these agencies, any part thereof, or any of its officials, employees or representatives, including the selection thereof:
i) U.S. Securities and Exchange Commission
ii) U.S. Commodity Futures Trading Commission
iii) U.S. Federal Energy Regulatory Commission
iv) U.S. Department of Labor, insofar as the communication also relates to the regulation and oversight of qualified savings plans covered by ERISA or to deferred compensation plans or other retirement, savings, or benefit plans, programs or funds.
v) the U.S. Department of Commerce
vi) the U.S. Department of Energy
vii) the Overseas Private Investment Corporation
viii) the Export-Import Bank of the United States.
b) For each communication listed in response to paragraph 2a, please identify the following:
i) For any meetings, whether in-person or through telephone or videoconferencing:
a. who initiated the meeting
b. all those who were present at the meeting
c. the subject matter(s) of the meeting
d. the date of the meeting
ii) For all other communications:
a. the sender(s) of the communication
b. the recipient(s) of the communication
c. the date of the communication
d. the subject matter of the communication
3) Please list all communications between Enron and the EOP or any member of the National Energy Policy Development Group or its staff, from January 20, 2001 to the present, referring or relating to the development of the May 2001 Report of the National Energy Policy Development Group or any of the issues discussed therein.
a) For any meetings, whether in-person or through telephone or videoconferencing, please identify:
i) who initiated the meeting
ii) all those who were present at the meeting
iii) the subject matter(s) of the meeting
iv) the date of the meeting
b) For all other communications, please identify:
i) the sender(s) of the communication
ii) the recipient(s) of the communication
iii) the date of the communication
iv) the subject matter of the communication
The Committee would appreciate your prompt attention to this request, but in any event seeks a response no later than April 12, 2002. Please contact Cynthia Lesser of my staff at 224-2627 in response to this request.
Sincerely,
Joseph I. Lieberman
Chairman
John W. Carlin
Archivist of the United States
The National Archives and Records Administration
8601 Adelphi Road
College Park, MD 20740-6001
Dear Mr. Carlin:
The collapse of Enron Corporation has served as a wake-up call for the nation?s employees, investors and its governmental leadership. When Enron filed for bankruptcy in December 2001, it marked the largest corporate failure in United States history. But it is not merely the magnitude of the collapse that makes this a matter of significant public concern. Rather, what is particularly troubling is the extent to which Enron?s unraveling appeared to catch the regulatory and financial communities unaware.
The rapid collapse of what was once ranked as the nation?s seventh largest company demands public scrutiny. Given Enron?s size, its bankruptcy financially imperils thousands of employees, as well as a far broader universe of shareholders. Just as importantly, it threatens to undermine public confidence in the market system, which depends on investors buying and selling stock based on honest reporting and fair appraisals of a company?s worth.
In the wake of Enron?s financial demise, the public has been asking many questions ? not only about whether employees and shareholders can rely on the market to offer them fair and complete information about companies in which they wish to invest, but also whether they can depend on the government to protect them against wrongdoing by corporate and market insiders.
Pursuant to its jurisdiction to investigate the efficiency and economy of operations of all branches of the government (S. Res. 54, 107th Congress), the Senate Governmental Affairs Committee is seeking to answer some of those questions. The Committee is trying to find out whether the various federal agencies charged with overseeing or regulating part of Enron?s business could have done something to detect or prevent the problems that led to the company?s downfall and the losses of thousands of jobs and billions of investors? and employees? dollars. What oversight did federal regulators provide to Enron?s activities? Was there more that could or should have been done to avert the collapse? Do agencies need additional authorities to be able to help provide effective oversight?
With regard to the National Archives and Records Administration, the Committee seeks the information outlined below. Please interpret the term ?EOP? to include the Executive Office of the President and all of its units and all of their officials, employees and representatives, including the President and Vice President of the United States. Please interpret the term ?Enron? to include Enron Corp., Enron Capital Trust I, and Enron Capital Trust II; their officers, directors, employees, and representatives, including anyone purporting to act on their behalf; and each of their affiliates, subsidiaries, partnerships, special purpose entities, joint ventures, trusts or any other entity in which Enron Corp., Enron Capital Trust I, or Enron Capital Trust II is or was a shareholder, partner, investor, trustee, or member. In addition, please interpret the term ?communications? to mean all communications, whether written, oral, electronic, in-person or through any other means.
1) Please provide all records containing, or referring or relating to, communications between Enron and the EOP from January 1, 1992 to January 20, 2001 concerning compliance with, interpretation of, exemption or waiver from, changes to, enforcement of, or any other action with respect to the laws, regulations and policies administered or enforced by each of the following agencies; or concerning loans, loan guarantees, insurance or other financial assistance from these agencies; or otherwise referring or relating to these agencies or any part thereof, or any of its officials, employees or representatives, including the selection thereof:
a) U.S. Securities and Exchange Commission
b) U.S. Commodity Futures Trading Commission
c) U.S. Federal Energy Regulatory Commission
d) U.S. Department of Labor, insofar as the communication also relates to the regulation and oversight of qualified savings plans covered by ERISA or to deferred compensation plans or other retirement, savings, or benefit plans, programs or funds
e) the U.S. Department of Commerce
f) the U.S. Department of Energy
g) the Overseas Private Investment Corporation
h) the Export-Import Bank of the United States.
2) Please provide all records containing, or referring or relating to, communications from January 1, 1992 to January 20, 2001 between the EOP and any official, employee, or representative of any federal department or agency referring or relating to Enron and concerning compliance with, interpretation of, exemption or waiver from, changes to, enforcement of, or any other action with respect to the laws, regulations and policies administered or enforced by each of the following agencies; or concerning loans, loan guarantees, insurance or other financial assistance from these agencies; or otherwise referring or relating to these agencies or any part thereof, or any of its officials, employees or representatives, including the selection thereof:
a) U.S. Securities and Exchange Commission
b) U.S. Commodity Futures Trading Commission
c) U.S. Federal Energy Regulatory Commission
d) U.S. Department of Labor, insofar as the communication also relates to the regulation and oversight of qualified savings plans covered by ERISA or to deferred compensation plans or other retirement, savings, or benefit plans, programs or funds
e) the U.S. Department of Commerce
f) the U.S. Department of Energy
g) the Overseas Private Investment Corporation
h) the Export-Import Bank of the United States.
The Committee would appreciate your prompt attention to this request, but in any event seeks a response no later than April 12, 2002. Please contact Beth Grossman of my staff at 224-2627 in response to this request.
Sincerely,
Joseph I. Lieberman
Chairman
With appropriate name and agency changes, this letter was sent to the following ten members of the Vice President?s energy task force:
Colin L. Powell, Department of State
Paul O’Neill, Department of the Treasury
Gale Norton, Department of the Interior
Ann M. Veneman, Department of Agriculture
Donald L. Evans, Department of Commerce
Norman Y. Mineta, Department of Transportation
Spencer Abraham, Department of Energy
Joe M. Allbaugh, Federal Emergency Management Agency
Christine Todd Whitman, Environmental Protection Agency
Mitchell E. Daniels, Office of Management and Budget
March 27, 2002
The Honorable Spencer Abraham
Secretary
U.S. Department of Energy
1000 Independence Avenue, S.W.
Washington, DC 20585
Dear Secretary Abraham:
As part of its investigation into the collapse of Enron Corporation and pursuant to its jurisdiction to investigate the efficiency and economy of operations of all branches of the government (S. Res. 54, 107th Congress), the Senate Governmental Affairs Committee is seeking information on contacts between Enron and federal officials concerning the National Energy Policy. Because you and perhaps others at the Energy Department participated in the National Energy Policy Development Group, your agency may possess information relevant to the Committee?s investigation.
The Committee would therefore appreciate your providing the information outlined below. Please interpret the term ?Enron? to include Enron Corp., Enron Capital Trust I, and Enron Capital Trust II; their officers, directors, employees, and representatives, including anyone purporting to act on their behalf; and each of their affiliates, subsidiaries, partnerships, special purpose entities, joint ventures, trusts or any other entity in which Enron Corp., Enron Capital Trust I, or Enron Capital Trust II is or was a shareholder, partner, investor, trustee, or member. In addition, please interpret the term ?communications? to mean all communications, whether written, oral, electronic, in-person or through any other means. Finally, when identifying individuals in response to these questions, please give their full name, title and the company, agency, or office for which they work(ed).
1) Please list all communications between Enron and any official, employee or representative of U.S. Department of Energy from January 20, 2001 to the present, referring or relating to the development of the May 2001 Report of the National Energy Policy Development Group or any of the issues discussed therein.
a) For any meetings, whether in-person or through telephone or videoconferencing, please identify:
i) who initiated the meeting
ii) all those who were present at the meeting
iii) the subject matter(s) of the meeting
iv) the date of the meeting
b) For all other communications, please identify:
i) the sender(s) of the communication
ii) the recipient(s) of the communication
iii) the date of the communication
iv) the subject matter of the communication
The Committee would appreciate your prompt attention to this request, but in any event seeks a response no later than April 12, 2002. Please contact David Berick of my staff at 224-2627 in response to this request.
Sincerely,
Joseph I. Lieberman
Chairman
The Honorable Elaine L. Chao
Secretary
Department of Labor
200 Constitution Avenue, NW
Washington, DC 20210
Dear Secretary Chao:
By letter dated February 15, 2002, the Senate Governmental Affairs Committee requested certain information from the Department of Labor. The information was sought as part of the Committee?s ongoing investigation into the collapse of Enron Corporation and the actions of various federal agencies charged with overseeing or regulating part of Enron?s business. Pursuant to its jurisdiction to investigate the efficiency and economy of operations of all branches of the government (S. Res. 54, 107th Congress), the Committee now seeks the additional information set forth below.
Please interpret the term ?the Department? to include any officer or employee of the Department of Labor, and please interpret the term ?Executive Office of the President? to include the Executive Office of the President and all of its units and all of their officials, employees and representatives, including the President and Vice President of the United States. Please interpret the term ?Enron? to include Enron Corp., Enron Capital Trust I and Enron Capital Trust II; their officers, directors, employees, and representatives, including anyone purporting to act on their behalf; and each of their affiliates, subsidiaries, partnerships, special purpose entities, joint ventures, trusts or any other entity in which Enron Corp., Enron Capital Trust I, or Enron Capital Trust II is or was a shareholder, partner, investor, trustee, or member. In addition, please interpret the term ?communications? to mean all communications, whether written, oral, electronic, in-person or through any other means. Finally, when identifying individuals in response to these questions, please give their full name, title and the company, agency, or Department of Labor office for which they work(ed).
Please list all communications between the Department and other federal departments or agencies or the Executive Office of the President from January 1, 1992 to December 2, 2001 referring or relating to Enron. For each such communication, please identify:
a) who sent the communication
b) who received the communication
c) the date of the communication
d) the subject matter of the communication
e) any action taken in response to the communication
f) for any meetings responsive to this request, the date of the meeting and all those who attended the meeting.
You need not include communications previously listed in your response to paragraph 7 of the Committee?s letter of February 15, 2002.
The Committee would appreciate your prompt attention to this request, but in any event seeks a response no later than April 12, 2002. Should you believe that your response to this letter will require the disclosure of confidential information, please let us know in advance of this date so that we may determine whether alternate arrangements for production are appropriate. Please contact Holly Idelson of my staff at 224-2627 in response to this request.
Sincerely,
Joseph I. Lieberman
Chairman
The Honorable James E. Newsome
Chairman
Commodity Futures Trading Commission
3 Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Chairman Newsome:
By letter dated February 15, 2002, the Senate Governmental Affairs Committee requested certain information from the Commodity Futures Trading Commission (CFTC). The information was sought as part of the Committee?s ongoing investigation into the collapse of Enron Corporation and the actions of various federal agencies charged with overseeing or regulating part of Enron?s business. Pursuant to its jurisdiction to investigate the efficiency and economy of operations of all branches of the government (S. Res. 54, 107th Congress), the Committee now seeks the additional information set forth below.
Please interpret the term ?Commission? to include any Commissioner, officer or employee of the CFTC, and please interpret the term ?Executive Office of the President? to include the Executive Office of the President and all of its units and all of their officials, employees and representatives, including the President and Vice President of the United States. Please interpret the term ?Enron? to include Enron Corp., Enron Capital Trust I and Enron Capital Trust II; their officers, directors, employees, and representatives, including anyone purporting to act on their behalf; and each of their affiliates, subsidiaries, partnerships, special purpose entities, joint ventures, trusts or any other entity in which Enron Corp., Enron Capital Trust I, or Enron Capital Trust II is or was a shareholder, partner, investor, trustee, or member. In addition, please interpret the term ?communications? to mean all communications, whether written, oral, electronic, in-person or through any other means. Finally, when identifying individuals in response to these questions, please give their full name, title and the company, agency, or CFTC division for which they work(ed).
Please list all communications between the Commission and other federal departments or agencies or the Executive Office of the President from January 1, 1992 to December 2, 2001 referring or relating to Enron. For each such communication, please identify:
a) who sent the communication
b) who received the communication
c) the date of the communication
d) the subject matter of the communication
e) any action taken in response to the communication
f) for any meetings responsive to this request, the date of the meeting and all those who attended the meeting.
You need not include communications previously listed in your response to paragraph 8of the Committee?s letter of February 15, 2002.
The Committee would appreciate your prompt attention to this request, but in any event seeks a response no later than April 12, 2002. Should you believe that your response to this letter will require the disclosure of confidential information, please let us know in advance of this date so that we may determine whether alternate arrangements for production are appropriate. Please contact Cynthia Lesser of my staff at (202) 224-2627 in response to this request.
Sincerely,
Joseph I. Lieberman
Chairman
The Honorable Harvey L. Pitt
Chairman
Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549
Dear Chairman Pitt:
By letter dated February 15, 2002, the Senate Governmental Affairs Committee requested certain information from the Securities and Exchange Commission (SEC). The information was sought as part of the Committee?s ongoing investigation into the collapse of Enron Corporation and the actions of various federal agencies charged with overseeing or regulating part of Enron?s business. Pursuant to its jurisdiction to investigate the efficiency and economy of operations of all branches of the government (S. Res. 54, 107th Congress), the Committee now seeks the additional information set forth below.
Please interpret the term ?the Commission? to include any Commissioner, officer or employee of the SEC, and please interpret the term ?Executive Office of the President? to include the Executive Office of the President and all of its units and all of their officials, employees and representatives, including the President and Vice President of the United States. Please interpret the term ?Enron? to include Enron Corp., Enron Capital Trust I and Enron Capital Trust II; their officers, directors, employees, and representatives, including anyone purporting to act on their behalf; and each of their affiliates, subsidiaries, partnerships, special purpose entities, joint ventures, trusts or any other entity in which Enron Corp., Enron Capital Trust I, or Enron Capital Trust II is or was a shareholder, partner, investor, trustee, or member. In addition, please interpret the term ?communications? to mean all communications, whether written, oral, electronic, in-person or through any other means. Finally, when identifying individuals in response to these questions, please give their full name, title and the company, agency, or SEC division for which they work(ed).
Please list all communications between the Commission and other federal departments or agencies or the Executive Office of the President from January 1, 1992 to December 2, 2001 referring or relating to Enron. For each such communication, please identify:
a) who sent the communication
b) who received the communication
c) the date of the communication
d) the subject matter of the communication
e) any action taken in response to the communication
f) for any meetings responsive to this request, the date of the meeting and all those who attended the meeting.
You need not include communications previously listed in your response to paragraph 11 of the Committee?s letter of February 15, 2002.
The Committee would appreciate your prompt attention to this request, but in any event seeks a response no later than April 12, 2002. Should you believe that your response to this letter will require the disclosure of confidential information, please let us know in advance of this date so that we may determine whether alternate arrangements for production are appropriate. Please contact Beth Grossman of my staff at (202) 224-2627 in response to this request.
Sincerely,
Joseph I. Lieberman
Chairman
The Honorable Patrick H. Wood III
Chairman
Federal Energy Regulatory Commission
888 First Street, NE
Washington, DC 20426
Dear Chairman Wood:
By letter dated February 15, 2002, the Senate Governmental Affairs Committee requested certain information from the Federal Energy Regulatory Commission (FERC). The information was sought as part of the Committee?s ongoing investigation into the collapse of Enron Corporation and the actions of various federal agencies charged with overseeing or regulating part of Enron?s business. Pursuant to its jurisdiction to investigate the efficiency and economy of operations of all branches of the government (S. Res. 54, 107th Congress), the Committee now seeks the additional information set forth below.
Please interpret the term ?Commission? to include any Commissioner, officer or employee of the FERC, and please interpret the term ?Executive Office of the President? to include the Executive Office of the President and all of its units and all of their officials, employees and representatives, including the President and Vice President of the United States. Please interpret the term ?Enron? to include Enron Corp., Enron Capital Trust I and Enron Capital Trust II; their officers, directors, employees, and representatives, including anyone purporting to act on their behalf; and each of their affiliates, subsidiaries, partnerships, special purpose entities, joint ventures, trusts or any other entity in which Enron Corp., Enron Capital Trust I, or Enron Capital Trust II is or was a shareholder, partner, investor, trustee, or member. In addition, please interpret the term ?communications? to mean all communications, whether written, oral, electronic, in-person or through any other means. Finally, when identifying individuals in response to these questions, please give their full name, title and the company, agency, or FERC division for which they work(ed).
Please list all communications between the Commission and other federal departments or agencies or the Executive Office of the President from January 1, 1992 to December 2, 2001 referring or relating to Enron. For each such communication, please identify:
a) who sent the communication
b) who received the communication
c) the date of the communication
d) the subject matter of the communication
e) any action taken in response to the communication
f) for any meetings responsive to this request, the date of the meeting and all those who attended the meeting.
You need not include communications previously listed in your response to paragraph 7 of the Committee?s letter of February 15, 2002.
The Committee would appreciate your prompt attention to this request, but in any event seeks a response no later than April 12, 2002. Should you believe that your response to this letter will require the disclosure of confidential information, please let us know in advance of this date so that we may determine whether alternate arrangements for production are appropriate. Please contact David Berick of my staff at (202) 224-2627 in response to this request.
Sincerely,
Joseph I. Lieberman
Chairman