Saturday, August 20, 2011

Enron

http://www.corpwatch.org/article.php?id=457
Excerpt:
In 1997, Confederated Tribes of Warms Springs, Oregon, expressed their wish to gain control over the three Portland General Electric Co. hydropower dams on the Tribes' land in order to restore abandoned fish ladders. Enron owned PGE and "intended to keep the license". (Engineering News-Record, August 4, 1997) In early 2000, Enron Corp.'s Portland General Electric Co. agreed to sell stakes in its hydroelectric system over four decades to the Tribes, (Houston Chronicle, February 2, 2000) At the same time, Enron is in the process of selling it's interests in PGE to Sierra Pacific Resources. (Inside F.E.R.C.'s Gas Market Report, March 17, 2000)

http://archives.cnn.com/2002/US/01/26/enron.reed.cnna/
Excerpt:
(CNN) -- The White House acknowledged Friday that in 1997, as George W. Bush was deciding whether to run for president, his senior political adviser Karl Rove recommended GOP strategist Ralph Reed for a consulting job with Enron Corp. Reed, former head of the Christian Coalition, went to work for Enron as a strategist, making from $10,000 to $20,000 a month, according to The New York Times.

http://www.desmogblog.com/tim-phillips
Excerpt:
Century Strategies Lobbying Scandal
In 2005 and 2006, Ralph Reed and Century Strategies were embroiled in a federal lobbying scandal. In 2000, Century Strategies was contracted by lobbyist Jack Abramoff to generate anti-lottery grassroots support to in order to help promote and maintain the business interests of several of Abramoff's clients.
Century Strategies was hired by Abramoff to organize a coalition to block Native American tribes in Louisiana, Mississippi, and Texas from creating casinos—the proposed casinos would drive gamblers away from the casinos Abramoff's clients owned.
Reed, who has publicly called gambling a "cancer on the American politic," did not want to have any direct connection with this matter, so, he had his fees laundered through two companies.  According to the Washington Post, Century Strategies was paid as much as $4 million for its work opposing several tribal casinos in southern states from 2001 to 2003.

http://www.guardian.co.uk/business/2002/mar/24/enron.theobserver
Excerpt:

The firm that built the house of Enron

McKinsey refocused the energy firm. Now it fears collateral damage from the collapse, says Jamie Doward
Enron is the house that McKinsey rebuilt. The brightest minds at the world's most prestigious consulting firm helped turn the lumbering old-economy gas distribution dinosaur into a new-economy success story envied by every corporation in America.
The transformation earned the McKinsey mob a strong following in Enron. 'I found them very bright thinkers and just good people,' recalls former Enron employee John Allario, founder of the satirical Enron site Laydoff.com. 'They took a very objective view of business. They could gauge the potential for success or failure pretty quickly.'

http://thinkprogress.org/health/2009/05/29/170792/afp-timphillips-astroturf/
Excerpt:
Notably, AFP was also instrumental in orchestrating the anti-Obama, anti-tax tea party protests in April.
With nearly 70 Republican operatives and former oil industry spokesmen working behind the scenes of AFP’s various fronts and disclosures that point to ever increasing oil and corporate donations to the group, one must wonder, who is guiding this massive front group factory? The answer is Tim Phillips, the President of AFP who has built a long career of inventing fake grassroots causes. In Phillips’ official biography, there appears to be over a 10 year gap — but that period was when Phillips developed his very first astroturf groups to do everything from smearing his opponents with anti-Semitic attacks to laundering money for criminal lobbyists.
Click More To Read The WonkRoom’s Investigation Of AFP’s Tim Phillips


http://www.thefreelibrary.com/Ralph+Reed+made+big+bucks+from+Enron,+FEC+report+unveils.+(People+%26...-a0100545273
Excerpt:
The FEC looked into Reed's relationship with Enron as part of an investigation of President George W. Bush's 2000 presidential campaign. Conservative activist Larry Klayman Larry Klayman is the founder and chief representative of the Klayman Law Firm, which is based out of Miami, Florida and Washington D.C., although he is known chiefly as the founder and former Chairman of Judicial Watch, a public interest and non-profit law firm, which attained  of Judicial Watch had asserted that Bush and Vice President Dick Cheney arranged for Enron to pay Reed while Bush used Reed as a political consultant. If true, the payments would have been a type of in-kind contribution from Enron to the Bush campaign and a possible violation of federal campaign laws.

The FEC dismissed Klayman's allegations, but in the ensuing investigation found that the ex-Christian Coalition head was paid much more by Enron than had previously been disclosed. In 1997, Reed's Atlanta-based Century Strategies received $200,000 from the failed energy corporation. In 2000, he received $75,000 from Enron and by 2001 was receiving $30,000 monthly plus expenses.

Reed supposedly received the money for providing "ongoing advice and counsel to Enron" about electricity deregulation Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Notes:
Traditional areas that have been deregulated are the telephone and airline industries.
, although Reed has no background or special expertise in this area. The FEC also found that the terms Reed had with the company were extremely generous, permitting his consulting company Noun 1. consulting company - a firm of experts providing professional advice to an organization for a fee
consulting firm

business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a
 to keep getting paid even if it finished its work early.

The New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 Times reported last year that top Bush aide Karl Rove recommended that Enron hire Reed. The move was seen as a way to keep Reed in Bush's camp while at the same time avoiding having the Bush campaign hire him directly. Bush, who ran as a moderate, sought Reed's advice and valued his connections with religious conservatives but did not want to appear too close to him publicly.

Enron's collapse dominated headlines for weeks when it was revealed that the energy company paid top executives exorbitant salaries, inflated its stock values and looted employee retirement plans. Even as the company was spiraling downward, it continued paying Reed until it filed for bankruptcy late in 2001.

The FEC found that Reed did legitimate work for the company in 1997 but said in 1998 there was an "apparent lack of work for the money." Nevertheless, the FEC ruled that Reed's dealings with the company were legitimate and not an effort by the Bush campaign to hide a contribution.

Rove admits that he talked to someone at Enron about Reed but now says he cannot remember who it was or when it occurred. Enron lawyers asserted that no one at the firm recalls talking to Rove about hiring Reed.

The controversy hasn't slowed Reed's advancement. In February he announced that he was stepping down as chairman of the Republican Party of Georgia to work on Bush's reelection re·e·lect also re-e·lect
tr.v. re·e·lect·ed, re·e·lect·ing, re·e·lects
To elect again.
 campaign. Reed, who oversaw the election of a Republican governor and helped Republican Saxby Chambliss defeat incumbent Democrat Max Cleland for a U.S. Senate seat, said he enjoyed his tenure, but it was time to move on.

http://en.wikipedia.org/wiki/Dabhol_Power_Company
Excerpt:
The Dabhol Power Company was a company based in India, formed to manage and operate the Dabhol Power Plant. The Dabhol plant was built through the combined effort of Enron, GE, and Bechtel. GE provided the generating turbines to Dabhol, Bechtel constructed the physical plant, and Enron was charged with managing the project through Enron International.

http://archive.newsmax.com/archives/articles/2002/2/21/153014.shtml
Excerpt:
On the other hand, the Clinton administration made three loans between 1994 and 1998 to the now-defunct Dabhol power project in India. Ron Brown, Clinton's commerce secretary, bragged about the approval of the Dabhol loans during a trade mission to India in 1995, while Lay stood by his side.
The Times noted that the junket was "one of 11 Clinton trade missions provided at taxpayer expense for corporate executives from Enron and other companies." Moreover, the U.S. Trade and Development Agency, which sponsored the trips, also coughed up $1 million in funding to study Enron energy projects in Russia, Eastern Europe and former Soviet states.
While Democrats go rooting around trying to find any single indication that Lay was somehow in cahoots with the Bush administration, evidence of his links to the Clinton administration is popping up all over the place.

http://www.smokershistory.com/LeMaistr.htm
Excerpt:
The Charles A. LeMaistre Page
Enron director was prime organizer of ACS, AHA, ALA et al. anti-smoking activities; was also involved in previous corporate looting






His connections with Congress undoubtably made him a major asset to Enron


http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=477759&mesg_id=482070
Excerpt:
What do Enron, Jack Abramoff, and Ralph Reed Have in Common?

A match made in someplace other than heaven. K Street, maybe
Tom Baxter
Jim Galloway
Atlanta Journal Constitution
Published on: 02/06/06

Enron, meet Jack Abramoff. Jack Abramoff, meet Enron.

One year before the energy firm went belly up, paid adviser Ralph Reed urged Enron officials to hire Abramoff, then a rising Washington lobbyist, as a "kitchen cabinet" consultant.

The e-mailed endorsement resulted in clubby lunches in which Abramoff and Enron reps, future icons of scandal in Washington and on Wall Street, sat across the table from each other.

It's well-known that Reed worked for both Enron and Abramoff. That he helped them cross paths is not. The e-mail has never been published before.

Reed's plug for his old friend serves as further evidence his professional relationship with Abramoff was closer than Reed — a Republican candidate for lieutenant governor — cares to admit.

CONTINUED...

http://www.smokershistory.com/Enron.htm
Excerpt:
The Enron Page
D. Ronald Daniel was Jeffrey Skilling's boss at McKinsey during the 1980s, when Skilling designed Enron's devious schemes. "Because of the work of Daniel and Skilling, McKinsey is now a defendant in the largest suit against Enron." (The Harvard Corporation, Elitewatch.com.) Daniel was a Trustee of the Naylor Dana Institute of the American Health Foundation between August 1975 and April 1981, while he was managing director of the New York Office of McKinsey & Co., Inc.

http://en.wikipedia.org/wiki/Rebecca_Mark-Jusbasche
Excerpt:
Rebecca P. Mark-Jusbasche (born August 13, 1954 in Kirksville, Missouri) was famous as the head of the Enron International division of Enron. She later was promoted to Vice-Chairman of Enron, and resigned from the company in 2000 following the failure of a major investment.[1]

Excerpt:
Career
Daniel was an officer of the U.S. Navy Supply corps in the 1950s, where he worked with early IBM mainframes. He joined McKinsey & Company, Inc. in 1957 and was a senior partner from 1968 to 1990. He served as managing director for twelve years (1976-1988) — preceding Fred Gluck — and is currently senior partner emeritus of the firm.
At McKinsey Daniel developed the concept of critical success factors. He hired and mentored future managing director Rajat Gupta.[1] He was Jeffrey Skilling's former boss before Skilling became CEO of Enron.[2]

Excerpt:
Klausner is accused of benefiting financially from a subcontract awarded to Infinity Pharmaceuticals, a company he co-founded, from a $40 million grant to Harvard University funneled through Science Applications International Corporation (SAIC), a longtime NCI contractor. "Information available to the Committee can be reasonably interpreted to show that Dr. Klausner was personally and directly involved in launching the MTL initiative for which Harvard would be a prime candidate." (House Subcommittee on Health letter to NIH Director Zerhouni, Nov. 10, 2003.)
Letter to Zerhouni, Nov. 10, 2003 / House Subcommittee on Health
"D. Ronald Daniel, for instance was Jeffrey Skilling's boss at McKinsey during the 1980s, when Skilling consulted with Enron to design the energy giant's unsustainable business model. Because of the work of Daniel and Skilling, McKinsey is now a defendant in the largest suit against Enron." (The Harvard Corporation, Elitewatch.com.) One of his cronies on the Harvard Corporation was Hanna Holborn Gray, director of Cummins Engine Company from 1997-2001.

Excerpt:
Century Strategies LLC was founded in 1997 by Ralph Reed and Timothy R. Phillips. The company describes itself as "one of the nation's leading political and corporate consulting firms. Century Strategies has provided consulting services to Fortune 500 corporations, members of the United States House and Senate leadership, numerous Governors, and the campaign of President George Walker Bush ... Century provides strategic consulting and long-range planning for numerous corporate clients as well as political campaign management consulting to candidates in every region of the country.... Century Strategies is a full-service firm providing Strategic Business Development Assistance, Organizational Development, Direct Mail and Voter Contact Services, Fundraising Management, Research and Analyisis, Creative Media Planning, Public and Media Relations, and List Management and Procurement."[1] [2]
According to a July 2004 profile in The National Journal, Century Strategies "has raked in millions of dollars by mounting grassroots lobbying drives and other campaigns -- as well as doing some inside-the-Beltway advocacy -- for two dozen or so Fortune 100 companies and lesser-known enterprises."[3]
In 2003, the Georgia-based firm opened a Washington DC office. Century Strategies "is poised to earn handsome fees from the [Bush-Cheney '04] re-election campaign and from the Republican National Committee as a key vendor for voter contact and mobilization. ... Reed's firm received a total of $4.3 million from the RNC and the Bush campaign in 2000 for doing voter calls and direct mail."[citation needed]
Again according to The National Journal, when Reed formed Century Strategies, he "decided to focus on political and business consulting, an arena in which he could apply his legendary talents for mobilizing grassroots drives, often with religious and other conservatives, to assist political campaigns and business interests. Early on, Reed discovered the potential for synergy between the business and political worlds. For instance, one of his first and highest-profile consulting jobs was for Enron, a client that he garnered in 1997, reportedly through his connections to Karl Rove, who later made Reed a consultant in the 2000 presidential campaign. Century Strategies earned more than $300,000 from Enron for mounting grassroots lobbying campaigns to help build backing for energy deregulation."[citation needed] Other clients have included the school-focused media company Channel One, Verizon and casino interests working with Reed friend Jack Abramoff in an effort to block Native American tribes from opening new, competing casinos.[citation needed]

Excerpt:
Timothy R. (Tim) Phillips is the president of Americans for Prosperity and the Americans for Prosperity Foundation. He became president in 2006. He was formerly Vice President of Century Strategies, a political and corporate consulting firm.[1]

Excerpt:
December 12, 2000: Sen. Phil Gramm (R-TX), after being lobbied by Koch and Enron, creates the infamous “Enron Loophole” vastly deregulating the oil speculation market. On the night of December 12, 2000, Gramm attaches a 262-page amendment to the Commodities Futures Modernization Act, which is then attached to an omnibus spending bill that is signed into law by President Clinton before leaving office. The Gramm amendment, which received absolutely no public scrutiny or committee hearings, radically expands and codifies the energy deregulation agenda began by Gramm’s wife during the first Bush administration. The Gramm amendment allows so-called “over-the-counter” energy derivatives not only to be traded outside of regulated exchanges, but for private unregulated exchanges to deal in these sorts of financial products. Thus, massive “dark” oil speculation markets are born, including Enron’s platform for trading energy futures, and the Intercontinental Exchange (ICE) — an online speculation exchange founded by BP, Shell, Goldman Sachs, Morgan Stanley, and other firms. Private e-mails reported by the New York Times reveal that members of The Energy Group, led by lobbyists at Enron but including at least two lobbyists from Koch and several more from Goldman Sachs and Sempra Trading, wrote Gramm’s amendment and pressured him to slip it into the bill.

http://www.cnbc.com/id/41868799/Will_Rajat_Gupta_Destroy_McKinsey
Excerpt:
Rajat Gupta stands accused of violating insider trading rules by leaking confidential information about two companies—Procter & Gamble [PG  60.96    0.10  (+0.16%)   ] and Goldman Sachs [GS  111.76    -1.38  (-1.22%)   ] —on whose board’s he was serving. So far a lot of the public attention has been focused on Gupta’s roles at Goldman and P&G.
But Gupta has a far longer and more important connection to the world’s most prestigious consulting firm, McKinsey. He worked at the firm for 34 years, eventually rising to become its managing director—the McKinsey equivalent of chief executive. He was elected to the top job at McKinsey by his fellow partners at the firm for three consecutive terms—the maximum allowed by the firm’s rules.

http://dealbook.nytimes.com/2011/08/04/s-e-c-drops-administrative-proceeding-against-gupta/
Excerpt:

S.E.C. Drops Proceeding Against Rajat Gupta

Rajat K. Gupta, a former director of Goldman Sachs.Seokyong Lee/Bloomberg NewsRajat K. Gupta, a former director of Goldman Sachs.
8:26 p.m. | Updated
The Securities and Exchange Commission has dropped its administrative proceeding against Rajat K. Gupta, a former director of Goldman Sachs and Procter & Gamble, handing him a victory in his legal battle with the agency.
“The commission has determined that it is in the public interest to dismiss these proceedings,” the S.E.C. said in a two-page order filed late Thursday.

http://en.wikipedia.org/wiki/Indian_School_of_Business
Excerpt:
The Indian School of Business (ISB) is a business school in India with campuses in Hyderabad and Mohali. It offers a Post Graduate Programme in Management (PGP), a Fellow Program in Management, and a Post Graduate Programme in Management for Senior Executives (PGPMAX). ISB programs are not accredited by the All India Council of Technical Education. ISB's post graduate programme was ranked #13 in the 2011 Financial Times Global MBA Rankings.[1]
The school has also been involved in controversies, including its co-founders and executive board members Rajat Gupta and Anil Kumar involved in the Galleon Group insider trading case,[2][3][4] and dean emeritus Mendu Rammohan Rao involved in the Satyam Scandal.[5][6] They have all since resigned.[4][7]

Excerpt:
The "Enron loophole" exempts most over-the-counter energy trades and trading on electronic energy commodity markets from government regulation.[1]
The "loophole" was enacted in sections § 2(h) and (g) of the Commodity Futures Modernization Act of 2000, signed by U.S. president Bill Clinton on December 21, 2000.[1] It allowed for the creation, for U.S. exchanges, of a new kind of derivative security, the single-stock future, which had been prohibited since 1982 under the Shad-Johnson Accord, a jurisdictional pact between John S. R. Shad, then chairman of the U.S. Securities and Exchange Commission, and Phil Johnson, then chairman of the Commodity Futures Trading Commission.
In September 2007, Senator Carl Levin (D-MI) introduced Senate Bill S. 2058 specifically to close the "Enron Loophole". This bill was later attached to H.R. 6124, the Food, Conservation, and Energy Act of 2008, also known as "The 2008 Farm Bill". President George W. Bush vetoed the bill, but was overridden by both the House and Senate, and on June 18, 2008 the bill was enacted into law.
Wendy Gramm, Senator Phil Gramm's wife, coincidentally was the former chairman of the Commodity Futures Trading Commission.[when?] After leaving the CFTC,[when?] she took a seat on Enron's board of directors.[when?][2]
On June 22, 2008, then U.S. Senator Barack Obama blamed the "Enron loophole" for allowing speculators to run up the cost of fuel by operating outside federal regulation.[3]

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