Enron: A Select Chronology of Congressional, Corporate, and Government Activities

This report presents basic background information on the collapse of the Enron Corporation, identifying public policy issues in financial market oversight. This report briefly summarizes some federal laws carrying criminal penalties which may be implicated in the events surrounding the collapse of the Enron Corp. This report compares the auditing and accounting reform measures passed by the House (H.R. 3763) and reported by the Senate Committee on Banking, Housing, and Urban Affairs. This report compares the major provisions of three auditor and accounting reform proposals: H.R. 3763, S. 2673, and a rule proposed on June 20, 2002, by the SEC that would create a new auditor oversight board by using the SEC’s existing authority to regulate corporate accounting. The report focuses on Section 404(a) of the Employee Retirement Income Security Act (ERISA), the federal statute that regulates employer-sponsored pension plans. Section 404(a) is considered the “touchstone for understanding the scope and object of an ERISA fiduciary’s duties.”

Order Code RL31364 Report for Congress Received through the CRS Web Enron: A Select Chronology of Congressional, Corporate, and Government Activities Updated March 18, 2003 J. Michael Anderson Information Research Specialist Information Research Division Congressional Research Service ˜ The Library of Congress Enron: A Select Chronology of Corporate and Government Activities Summary Enron Corporation, which had more than $49 billion in total assets for 2001 and was listed as the seventh largest U.S. corporation (ranked by revenues in 2000) by Fortune magazine , filed for Chapter 11 reorganization protection on December 2, 2001. The Houston-based corporation and 13 affiliated entities filing for bankruptcy provoked intense media and congressional interest and questions involving the financial markets, securities and auditing firms, and corporate management and insurance and pension policies. The federal government is examining Enron’s corporate activities. Investigations by the Securities and Exchange Commission, the Federal Bureau of Investigation, Commodity Futures Trading Commission, and Federal Energy Regulatory Commission have commenced. Since December 2001, Congress has held numerous hearings on issues surrounding the Enron collapse, and additional hearings are scheduled. Numerous state and local governments have initiated legal proceedings against Enron and its affiliated entities. This report is a chronology of select major corporate and federal government events that are relevant to the collapse of Enron. Chronology entries were compiled from congressional, corporate, and standard news sources. Web sites are provided when appropriate and available. This report will be updated as events warrant. Contents A List of CRS Reports on Enron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Auditing/Banking Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Derivatives/Stock Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Pension Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Taxes/Political Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Congressional Hearings – 2001 to 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 House Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Senate Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Chronology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Feburary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 January . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 December . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 November . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 October . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 September . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 January . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Web Sites for Other Government and Industry Agencies Having Oversight Authority on Enron Related Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 List of Tables Table 1. Monthly Adjusted Stock Prices – 2/29/00 to 1/31/02a . . . . . . . . . . . . . . 34 Enron: A Select Chronology of Congressional, Corporate, and Government Activities A List of CRS Reports on Enron Descriptions of the reports are taken from the reports themselves. Overview CRS Electronic Briefing Book. Banking and Financial Services. Page on “Enron Bankruptcy: Issues for Financial Oversight.” CRS Report RS21135. The Enron Collapse: An Overview of Financial Issues. This report presents basic background information on the collapse of the Enron Corporation, identifying public policy issues in financial market oversight. CRS Report RS21177. Possible Criminal Provisions Which May Be Implicated in the Events Surrounding the Collapse of the Enron Corporation. This report briefly summarizes some federal laws carrying criminal penalties which may be implicated in the events surrounding the collapse of the Enron Corp. Auditing/Banking Issues CRS Report RS21120. Auditing and Its Regulators: Proposals for Reform After Enron. The Enron Corporation controversy has raised important questions about financial statement audits of corporations. These audits are to be carried out in accordance with generally accepted auditing standards (GAAS), rules that have carefully defined technical meanings. Auditors are regulated by both government agencies and professional organizations, though Enron’s bankruptcy raises questions about whether this oversight is adequate. One important question is whether Arthur Andersen, the financial auditor for Enron, compromised the independence it should have maintained as an auditor by engaging in extensive consulting work for Enron. CRS Report RS21249. Auditor and Accounting Reform Legislation: H.R. 3763 and S. 2673. This report compares the auditing and accounting reform measures passed by the House (H.R. 3763) and reported by the Senate Committee on Banking, Housing, and Urban Affairs. CRS-2 CRS Report RS20707. Auditor Independence: The SEC’s 2000 Rulemaking. Federal securities law requires that the financial statements of companies that sell stock or bonds to the public must be certified by an auditor who is independent of the company and its management. The Securities and Exchange Commission (SEC) has proposed a new rule that would bar accounting firms from providing certain consulting services to the firms they audit. The SEC believes there is an inherent conflict between the public watchdog function of the independent auditor and the role of the consultant, who stands to benefit if the client firm prospers. The accounting profession was generally opposed to the rule, arguing that the prohibition will do significant harm to the accounting industry. Congressional action to block or delay implementation of the proposed rule is possible. This report describes the proposal, sets out the arguments pro and con, and analyzes the potential economic effects. CRS Report RS21173. Auditor Oversight: Proposals for a New Regulator. The collapse of Enron Corp. raises questions about the effectiveness of independent auditors in preventing deceptive accounting by corporations. Several proposals intended to strengthen auditing propose to create a new oversight body to replace the current system of relying on accountants to police themselves. This report summarizes the major features of these proposals. CRS Report RL31483. Auditor Reform Proposals: A Side-by-Side Comparison. This report compares the major provisions of three auditor and accounting reform proposals: H.R. 3763, S. 2673, and a rule proposed on June 20, 2002, by the SEC that would create a new auditor oversight board by using the SEC’s existing authority to regulate corporate accounting. CRS Report RS21188. Enron’s Banking Relationships and Congressional Repeal of Statues Separating Bank Lending From Investment Banking. This report examines the relationship between the collapse of Enron Corporation and the repeal in 1999 of the Glass-Steagall Act, which had separated commercial lending from investment banking. It traces the passage of the Glass-Steagall Act in 1933 in the aftermath of the 1929 stock market crash and the onset of The Great Depression. It then describes events leading up to the 1999 Gramm-Leach-Bliley Act (P.L. 106-102), which repealed Glass-Steagall and permitted financial holding companies that could combine commercial and investment banking. Finally, the report discusses whether this law was implicated in the Enron collapse, and lists, but does not discuss in detail some related policy questions that Congress is beginning to discuss. CRS Report RL30516. Mergers and Consolidation Between Banking and Financial Services Firms: Trends and Prospects. The Gramm-Leach-Bliley Act (P.L. 106-102) ended the separation of the investment banking business and commercial banking by its repeal of the Glass-Steagall Act of 1933. The financing of Enron Corp. through both securities issues and loans by prominent financial holding companies may refocus attention on the new regulatory framework. CRS-3 Derivatives/Stock Regulation CRS Report RL30434. CFTC Reauthorization in 2000: Derivatives Regulation Reconsidered. This report analyzes the broad issues likely to dominate consideration of legislation to reauthorize the Commodity Futures Trading Commission, which created in 1974 to regulate derivative financial markets. CRS Report RS20560. Derivatives Regulation: Legislation in the 106th Congress. Industry participants and regulators have called for amendments to the laws regulating derivative financial instruments, to allow derivatives markets to modernize and to prevent the business from moving offshore. This report summarizes derivatives reform legislation before the 106th Congress. CRS Report RL31348. Enron and Stock Analyst Objectivity. This report examines the conflicts of interests that may compromise the objectivity of some stock analysts who report on and recommend stocks like Enron to investors. It also discusses recent Securities and Exchange Commission (SEC) and congressional interest in this area and discusses private sector and legislative reform initiatives to mitigate some of those conflicts of interests. CRS Report RS21127. Federal Securities Law: Insider Trading. This report discusses the federal securities statutes which limit or prohibit insider trading in securities. Pension Issues CRS Report RL30641. Employment Benefits in Bankruptcy. This report provides an overview of the status of employee wages and benefits, including retiree benefits, when an employer files for bankruptcy. CRS Report RS 21115. The Enron Bankruptcy and Employer Stock in Retirement Plans. Financial losses suffered by participants in the Enron Corporation’s 401(k) plan have prompted questions about the laws and regulations that govern these plans. This report describes current laws governing the holding of employer stock in employee retirement plans and summarizes the key policy questions that pension analysts have raised about holding such stock in defined contribution retirement plans. CRS Report RL31319. Employer Stock in Retirement Plans: Bills in the 107th Congress. This report describes bills introduced in the 107th Congress, in the wake of the Enron Corp. bankruptcy, which attempt to protect workers from the financial losses that could occur when a large proportion of their retirement savings are invested in securities issued by their employers. CRS-4 CRS Report RL31248. Enron: Selected Securities, Accounting, and Pension Laws Possibly Implicated in Its Collapse. This report discusses selected federal securities laws, federal pension laws, and accounting standards which Congress and the executive branch will likely examine in its investigations of the Enron collapse. CRS Report RL31282. Tittle v. Enron Corp. and Fiduciary Duties Under ERISA. The report focuses on Section 404(a) of the Employee Retirement Income Security Act (ERISA), the federal statute that regulates employer-sponsored pension plans. Section 404(a) is considered the “touchstone for understanding the scope and object of an ERISA fiduciary’s duties.” The report reviews selected cases that have interpreted Section 404(a) and discusses H.R. 3623, the Employee Savings Protection Act of 2002, a bill that would amend Section 404(a) to prohibit misrepresentations relating to employer securities by retirement plan fiduciaries. Taxes/Political Contributions CRS Report RL31288. Soft Money, Allegations of Political Corruption, and Enron. This report examines the current state of federal law regarding the most persistent charges of government or political corruption relating to the Enron matter, including federal campaign finance regulation of hard money, the state of the federal law with respect to soft money, bribery, illegal gratuities, extortion, conflicts of interest and required recusals of government officials, and the “revolving door” regulations on former government officials. CRS Report RS21149. Enron and Taxes. This report briefly examines the role of taxes and tax issues in the recent financial difficulties of the Enron Corporation. CRS Report RS21198. Independent Counsel or Special Prosecutor for the Enron Investigation. This report discusses the circumstances and authority under which the Attorney General may, in light of the expiration of the Independent Counsel law, appoint a “special counsel” or a “special prosecutor” for a matter such as the Enron Corp. failure investigation and prosecutions. Congressional Hearings – 2001 to 2003 Direct links to selected statements from recent hearings (available to congressional staff using the online version of this report) are provided at the Web sites of the committees which held the hearings. When a direct link is not available, it indicates that the witness did not provide prepared statements to the committee. Actual testimony is not available. All committee Web sites can be located through [http://www.congress.gov]. Printed copies of these hearings will also be available from the Government Printing Office 4 to 6 months after the hearing date. CRS-5 House Hearings 03/13/03 House Committee on Education and the Workforce Subcommittee on Employer-Employee Relations “The Pension Security Act: New Pension Protections to Safeguard the Retirement Savings of American Workers” Witness/Testimony– Ms. Ann L. Combs, Assistant Secretary, U.S. Department of Labor Mr. Ed Rosic, Vice President and Managing Assistant General Counsel, Marriott International, Inc. Ms. Nell Minow, Editor, Corporate Library, Portland, ME Mr. Scott Sleyster, Senior Vice President and President of Retirement Services and Guaranteed Products, Prudential Financial 02/13/02 House Committee on Education and the Workforce Subcommittee on Employer-Employee Relations “Enron and Beyond: Enhancing Worker Retirement Security” Witness/Testimony– Mr. Jack L. VanDerhei, Ph.D., Professor, Fox School of Business and Management, Temple University Mr. Douglas Kruse, Ph.D., Professor, School of Management and Labor Relations, Rutgers University Mr. Norman Stein, Douglas Arant Professor of Law, University of Alabama Ms. Rebecca Miller, CPA, Partner, McGladrey & Pullen, LLP Senate Committee on Banking, Housing, and Urban Affairs “Corporate Governance” Witness/Testimony– Mr. John H. Biggs, Chairman, President and CEO, Teachers’ Insurance and Annuity Association (TIAA) Mr. Ira M. Millstein, Senior Partner, Weil, Gotshal and Manges 02/07/02 House Committee on Education and the Workforce “The Enron Collapse and Its Implications for Worker Retirement Security,” Part II Witness/Testimony– Mr. Thomas O. Padgett, Senior Lab Analyst, EOTT (Enron subsidiary) Ms. Cindy K. Olson, Executive Vice President Human Resources, Community Relations, and Building Services, Enron Corp. Ms. Mikie Rath, Benefits Manager, Enron Corp. Mr. Scott Peterson, Global Practice Leader for Defined Contribution Services, Hewitt Associates Ms. Teresa Ghilarducci, Associate Professor, Department of Economics, University of Notre Dame CRS-6 02/06/02 House Committee on Education and the Workforce “The Enron Collapse and Its Implications for Worker Retirement Security,” Part I Witness/Testimony– Ms. Elaine Chao, Secretary of Labor, U.S. Department of Labor 06/26/02 House Committee on Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection “The Financial Accounting Standards Board Act” Witness/Testimony– Mr. Edmund L. Jenkins, Chairman, Financial Accounting Standards Board Mr. John C. Coffee, Jr., Adolf A. Berle Professor of Law, Columbia University Law School Mr. Ned Regan, President, Baruch College Mr.Bala G. Dharan, Ph.D., CPAJ., Howard Creekmore Professor of Management , Jesse H. Jones Graduate School of Management, Rice University Mr. Baruch Lev, Philips Bardes Professor of Accounting and Finance, Department of Accounting Taxation and Business Law & Department of Finance, Director, Vincent C. Ross Institute of Accounting Research, Stern School of Business, NYU 03/14/02 House Committee on Energy and Commerce Subcommittee on Oversight and Investigations “Financial Collapse of Enron Corporation” Witness/Testimony– Mr. James V. Derrick, Jr. Esq., Former General Counsel, Enron Corp. Mr. Joseph C. Dilg Esq., Managing Partner, Vinson & Elkins L.L.P. Mr. Rex R. Rogers Esq., Vice President and Associate General Counsel, Enron Corp. Mr. Ronald T. Astin Esq., Partner, Vinson & Elkins L.L.P. Mr. Scott M. Sefton Esq., Former General Counsel, Enron Global Finance Ms. Carol L. St. Clair Esq., Former Assistant General Counsel, ECT Resources Group, Enron Corp. 02/14/02 House Committee on Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection “Are Current Financial Accounting Standards Protecting Investors?” Witness/Testimony– Mr. Robert K. Herdman, Chief Accountant, SEC Mr. Edmund L. Jenkins, Chairman, Financial Accounting Standards Board Mr. James C. Castellano, Chairman of the Board, American Institute of Certified Public Accountants Ms. Grace L. Hinchman, Senior Vice President, Financial Executives International Mr. Thomas J. Linsmeier, Associate Professor of Accounting & Information Systems, Eli Broad College of Business, Michigan State University CRS-7 02/26/02 House Committee on Energy and Commerce Subcommittee on Oversight and Investigations “Financial Collapse of Enron Corporation” Witness/Testimony– Ms. Sherron Watkins, Vice President of Corporate Development, Enron Corp. 02/13/02 House Committee on Energy and Commerce Subcommittee on Energy and Air Quality “The Effect of the Bankruptcy of Enron on the Functioning of Energy Markets” Witness/Testimony– Mr. Patrick H. Wood III, Chairman, Federal Energy Regulatory Commission Mr. Isaac Hunt, Commissioner, SEC Mr. Thomas L. Welch, Chairman, Maine Public Utilities Commission Mr. James E. Newsome, Chairman, Commodity Futures Trading Commission Ms. Mary Hutzler, Acting Director, Office of Integrated Analysis and Forecasting, Department of Energy Mr. Richard C. Green, Chairman, UtiliCorp United, Inc. (Testifying on behalf of the Electric Power Supply Association) Mr. Raymond Plank, Chairman and CEO, Apache Corporation Mr. Robert McCullough, Managing Partner, McCullough Research Mr. David Owens, Executive Vice-President, Edison Electric Institute Mr. Gerald A. Norlander Esq., Executive Director, Public Utility Law Project 02/07/02 House Committee on Energy and Commerce Subcommittee on Oversight and Investigations “Financial Collapse of Enron Corporation” Witness/Testimony– Mr. Andrew S. Fastow, Former Chief Financial Officer, Enron Corp. Mr. Michael J. Kopper, Former Managing Director, Enron Global Finance Mr. Richard B. Buy, Chief Risk Officer, Enron Corp. Mr. Richard A. Causey, Chief Accounting Officer, Enron Corp. Mr. John Olson, Senior Vice President and Director of Research, Sanders, Morris, Harris Mr. Jordan Mintz, Vice President and General Counsel for Corporate Development, Enron Corp. Mr. Jeffrey K. Skilling, Former President and CEO, Enron Corp. Mr. Robert Jaedicke, Enron board of directors Chairman of Audit and Compliance Committee, Enron Corp. Mr. Jeffrey McMahon, President and Chief Operating Officer, Enron Corp. Mr. Herbert S. Winokur, Jr., Board of Directors, Chairman of the Finance Committee, Enron Corp. Mr. Thomas H. Bauer, Partner, Andersen LLP CRS-8 02/06/02 House Committee on Energy and Commerce “Developments Relating to Enron Corporation” Witness/Testimony– Mr. James S. Chanos, President & Founder, Kynikos Associates, Ltd. Mr. Roman L. Weil, Ph.D., V. Duane Rath Professor of Accounting, University of Chicago, Graduate School of Business Mr. Baruch Lev, Director, Vincent C. Ross Institute of Accounting Research, Stern School of Business, New York University Mr. David L Sokol, Chairman & CEO, MidAmerican Energy Holdings Company Mr. Roger W. Raber, President & CEO, National Association of Corporate Directors Mr. Bala G. Dharan, Ph.D., CPA, J. Howard Creekmore Professor of Management, Rice University Mr. Bevis Longstreth, Debevoise & Plimpton 01/24/02 House Committee on Energy and Commerce Subcommittee on Oversight and Investigations “The Destruction of Enron-Related Documents by Andersen Personnel” Witness/Testimony– David B. Duncan, Arthur Andersen. (Invoked his Fifth Amendment constitutional right against self-incrimination. Hearing postponed indefinitely.) 05/01/02 House Committee on Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises “Corporate Accounting Practices: Is There a Credibility GAAP?” Witness/Testimony– Ms. Betty Montgomery, Attorney General, State of Ohio Mr. William Holder, Ernst & Young Professor of Accounting, University of Southern California Mr. Charles Hill, Director of Research, Thompson Financial/First Call Mr. Ken Boehm, Chairman, National Legal and Policy Center 04/09/02 House Committee on Financial Services “Hearing on H.R. 3763, the Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002” (Part III) Witness/Testimony– Mr. David Walker, Comptroller General of the United States, U.S. General Accounting Office Mr. Richard C. Breeden, Former Chairman, Securities and Exchange Commission, Richard C. Breeden & Co. Mr. Donald C. Langevoort, Professor, Georgetown University Law Center Mr. Damon Silvers, Associate General Counsel, AFL-CIO CRS-9 03/20/02 House Committee on Financial Services “Hearing on H.R. 3763, the Corporate and Auditing, Accountability, Responsibility, and Transparency Act of 2002” (Part II) Witness/Testimony– Mr. Harvey L. Pitt, Chairman, Securities and Exchange Commission Mr. Franklin D. Raines, Chairman and CEO, Fannie Mae. (On behalf of The Business Roundtable) Mr. H. Carl McCall, Comptroller, State of New York, Office of the State Comptroller Mr. Joseph V. DelRaso, Partner, Pepper Hamilton, LLP Mr. Philip B. Livingston, President and CEO, Financial Executives International Mr. Jerry J. Jasinowski, President, National Association of Manufacturers Mr. Peter C. Chapman, Senior Vice President and Chief Counsel, Corporate Governance, TIAA-CREF 03/13/02 House Committee on Financial Services “Hearing on H.R. 3763, the Corporate and Auditing, Accountability, Responsibility, and Transparency Act of 2002” (Part I) Witness/Testimony– Mr. Marc E. Lackritz, President, Securities Industry Association Mr. Barry C. Melancon, President and CEO, American Institute of Certified Public Accountants Mr. James Glassman, Resident Fellow, American Enterprise Institute Mr. Ted White, Director of Corporate Governance, California Public Employees’ Retirement System Mr. Roderick M. Hills, Former Chairman, Securities and Exchange Commission Ms. Barbara Roper, Director of Investor Protection, Consumer Federation of America Mr. Lynn Turner, Director, Center for Quality Financial Reporting 02/05/02 House Committee on Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises “The Enron Matter” Witness/Testimony– Mr. Joseph F. Berardino, Managing Partner and Chief Executive Officer, Andersen Worldwide [Arthur Andersen LLP] 02/04/02 House Committee on Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises “The Enron Matter” Witness/Testimony– Mr. Harvey L. Pitt, Chairman, SEC Mr. William C. Powers, Jr., Director, Enron Corp. CRS-10 12/12/01 House Committee on Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, Subcommittee on Oversight and Investigations “The Enron Collapse: Impact on Investors and Financial Markets” Witness/Testimony– Robert K. Herdman, Chief Account, SEC Mr. Joseph F. Berardino, CEO, Arthur Andersen LLP Mr. Charles L. Hill, Director of Research, Thomson Financial Mr. Richard Trumka, Secretary-Treasurer, AFL-CIO Senate Hearings 03/21/02 Senate Committee on Banking, Housing, and Urban Affairs “Accounting and Investor Protection Issues Raised by Enron and Other Public Companies” Witness/Testimony– Mr. Harvey L. Pitt, Chairman, Securities and Exchange Commission 03/20/02 Senate Committee on Banking, Housing, and Urban Affairs “Accounting and Investor Protection Issues Raised by Enron and Other Public Companies” Witness/Testimony– Hon. Howard M. Metzenbaum, Chairman, Consumer Federation of America, Former U.S. Senator Mr. Damon Silvers, Associate General Counsel, AFL-CIO Ms. Sarah Teslin, Executive Director, Council of Institutional Investors Mr. Thomas A. Bowman, President and CEO, Association for Investment Management and Research. 03/19/02 Senate Committee on Banking, Housing, and Urban Affairs “Accounting and Investor Protection Issues Raised by Enron and Other Public Companies” Witness/Testimony– Mr. Charles A. Bowsher, Chairman, Public Oversight Board, Former Comptroller General of the United States Ms. Aulana L. Peters, Member, Public Oversight Board Mr. L. William Seidman, Former Chairman of the Federal Deposit Insurance Corporation and Resolution Trust Corporation Mr. John C. Whitehead, Former Co-Chairman of Goldman Sachs & Co., Former Deputy Secretary of State Mr. Michael Mayo, Managing Director, Prudential Securities, Inc. Head of Financial Services Research Group CRS-11 03/14/02 Senate Committee on Banking, Housing, and Urban Affairs “Accounting and Investor Protection Issues Raised by Enron and Other Public Companies: Oversight of the Accounting Profession, Audit Quality and Independence, and Formulation of Accounting Principles” Witness/Testimony– Mr. James G. Castellano, CPA, Chairman, Board of Directors, American Institute of Certified Public Accountants (AICPA), Managing Partner, Rubin, Brown, Gornstein Co., LLP Mr. James S. Gerson, CPA, Chairman, Auditing Standards Board, AICPA, Partner, National Office of PricewaterhouseCoopers, LLP Mr. William E. Balhoff, CPA, CFE, Chairman, Executive Committee AICPA Public Company Practice Section, Senior Audit Director Postlethwaite & Netterville, A.P.A.C Ms. Olivia F. Kirtley, CPA, Former Chair, Board of Directors, AICPA (1998-99), Retired Vice President and CFO, Vermont American Company Mr. James E. Copeland, Jr., CPA, Chief Executive Officer, Deloitte & Touche Mr. Peter J. Wallison, Resident Fellow and Co-Director, Financial Deregulation Project, American Enterprise Institute Mr. Robert E. Litan, Director, Economic Studies Program, The Brookings Institution, Bear, Stearns & Co. Inc. 02/27/02 Senate Committee on Banking, Housing, and Urban Affairs “Corporate Governance” Witness/Testimony– Mr. John H. Biggs, Chairman, President and CEO, Teachers’ Insurance and Annuity Association (TIAA) Mr. Ira M. Millstein, Senior Partner, Weil, Gotshal and Manges 02/26/02 Senate Committee on Banking, Housing, and Urban Affairs “Accounting and Investor Protection Issues Raised by Enron and Other Public Companies: Oversight of the Accounting Profession, Audit Quality and Independence, and Formulation of Accounting Principles.” Witness/Testimony– Mr. Walter P. Schuetze, Chief Accountant, SEC, 1992-95 Mr. Michael H. Sutton, Chief Accountant, SEC, 1995-98 Mr. Lynn E. Turner, Chief Accountant, SEC, 1998-2001 Mr. Dennis R. Beresford, Chairman, Financial Accounting Standards Board, 1987-97 02/14/02 Senate Committee on Banking, Housing, and Urban Affairs “Accounting and Investor Protection Issues Raised by Enron and Other Public Companies: International Accounting Standards and Necessary Reforms to Improve Financial Reporting” Witness/Testimony– Mr. Paul Volcker, International Accounting Standards Board; Chairman of Arthur Andersen’s Independent Oversight Board; and Former Chairman, Board of Governors of the Federal Reserve System Mr. David Tweedie, Chairman of the International Accounting Standards Board; and Former Chairman of the United Kingdom’s Accounting Standards Board CRS-12 02/12/02 Senate Committee on Banking, Housing, and Urban Affairs “Accounting and Investor Protection Issues Raised by Enron and Other Public Companies” Witness/Testimony– Mr. Roderick M. Hills, Chairman, SEC, 1975-77 Mr. Harold M. Williams, Chairman, SEC, 1977-81 Mr. David Ruder, Chairman, SEC, 1987-89 Mr. Richard C. Breeden, Chairman, SEC, 1989-93 Mr. Arthur Levitt, Jr., Chairman, SEC, 1993-20 02/06/02 Senate Committee on Banking, Housing, and Urban Affairs “The State of Financial Literacy and Education in America” Witness/Testimony– Mr. Don Blandin, President, American Savings Education Council Mr. Steve Brobeck, President, Consumer Federation of America Ms. Esther “Tess” Canja, President, AARP Ms. Denise Voigt Crawford, Securities Commissioner, State of Texas Hon. Susan Molinari, National Chairperson, Americans for Consumer Education and Competition Mr. H. Patrick Swygert, President of Howard University. (Testifying on behalf of Historically Black Colleges and Universities) Mr. Raul Yzaguirre, President, National Council of La Raza 02/05/02 Senate Committee on Banking, Housing, and Urban Affairs “The State of Financial Literacy and Education in America” Witness/Testimony– Mr. Paul O’Neill, Secretary of the Treasury Mr. Alan Greenspan, Chairman, Board of Governors, Federal Reserve System Mr. Harvey L. Pitt, Chairman, Securities and Exchange Commission 05/16/02 Senate Committee on Commerce, Science, and Transportation Subcommittee on Consumer Affairs, Foreign Commerce, and Tourism “Examining Enron: The Consumer Impact of Enron’s Influence on State Pension Fund” Witness/Testimony– Mr. Bruce Calvert, Chairman and Chief Executive Officer of the Board, Alliance Capital Management Corporation Mr. Alfred Harrison, Vice Chairman of the Board, Alliance Capital Management Mr. C. Coleman Stipanovich, Deputy Executive Director, Florida State Board of Administration Mr. Trent Webster, Portfolio Manager, Florida State Board of Administration Mr. James Glassman, American Enterprise Institute Mr. Michael Musuraca, Assistant Director, Department of Research and Negotiations, District Council 37, American Federation of State, County, and Municipal Employees (AFSCME) Mr. Travis Plunkett, Legislative Director, Consumer Federation of America Ms. Sarah Teslik, Executive Director, Council of Institutional Investors CRS-13 05/15/02 Senate Committee on Commerce, Science, and Transportation Subcommittee on Consumer Affairs, Foreign Commerce, and Tourism “Examining Enron: The Consumer Impact of Enron’s Influence on State Pension Funds” Witness/Testimony– Mr. Patrick Wood, III, Chairman, Federal Energy Regulatory Commission Ms. Loretta Lynch, President, California Public Utilities Commission Mr. Joseph Dunn, Senator, State of California Mr. S. David Freeman, Chairman, California Power Authority Dr. Frank Wolak, Professor of Economics, Stanford University Mr. Gary Fergus, Former legal representative for Enron Corp. Mr. Jean Frizzell, Esq., Gibbs & Bruns, LLP Mr. Stephen C. Hall, Esq., Director, Legal Services, UBS Warburg Energy, LLC, Portland, OR Mr. Christian G. Yoder, Director, Legal Services, UBS Warburg Energy, LLC, Portland, OR 04/11/02 Senate Committee on Commerce, Science, and Transportation “Examining Enron: Electricity Market Manipulation and the Effect on Western States” Witness/Testimony– Mr. Joseph Dunn, Senator, State of California Ms. Loretta Lynch, President, California Public Utilities Commission Mr. S. David Freeman, Chairman, California Power Authority Ms. Wenonah Hauter, Director, Critical Mass Energy and Environment Program, Public Citizen Mr. Robert McCullough, Managing Partner, McCullough Research 02/26/02 Senate Committee on Commerce, Science, and Transportation Subcommittee on Consumer Affairs, Foreign Commerce, and Tourism “Enron Collapse” Witness/Testimony– Ms. Sherron Watkins, Vice President of Corporate Development, Enron Corp. Mr. Jeffrey McMahon, President and Chief Operating Officer, Enron Corp. Mr. Jeffrey Skilling, O’Melveny & Myers (former President and CEO, Enron Corp.) 02/12/02 Senate Committee on Commerce, Science, and Transportation “Enron Collapse” Witness/Testimony– Mr. Kenneth L. Lay, Piper, Marbury, Rudnick & Wolfe, LLP (Mr. Lay invoked his Fifth Amendment constitutional right against selfincrimination; no statement available electronically.) Mr. William Powers, Jr., Member of the Enron Corp. board of directors and chairman of the Special Investigation Committee. 02/03/02 Senate Committee on Commerce cancelled hearings on Enron Corp. after Kenneth L. Lay declined to appear before the Committee. CRS-14 12/18/01 Senate Committee on Commerce, Science and Transportation “Issues Surrounding the Collapse of Enron Corporation” Witness/Testimony– Mr. Donald Eri, Special Tester (retired), Portland General Electric, Gresham, OR Ms. Janice Farmer, Enron Corp. (retired), Orlando, FL Ms. Mary Bain Pearson, Enron Corp. shareholder, Houston, TX Mr. Charles Prestwood, Enron Corp. (retired), Conroe, TX Mr. Robert Vigil, Electrical Machinist Working Foreman, Portland General Electric, Madras, OR Mr. Kenneth Lay, Chairman & Chief Executive Officer, Enron Corp. (Scheduled but did not appear) Mr. C.E. Andrews, Global Head of Auditing and Business Advisory, Arthur Andersen LLP Mr. Scott Cleland, Chief Executive Officer, The Precursor Group Mr. John C. Coffee, Jr., Adolf Berle Professor of Law, Columbia University School of Law Mr. Bill Mann, Senior Analyst, Motley Fool Mr. Damon Silvers, Associate General Counsel, AFL-CIO 05/15/02 Senate Committee on Energy and Natural Resources “To Examine Manipulation in Western Energy Markets During 2000-2001” Witness/Testimony– Mr. Patrick Wood, III, Chairman, Federal Energy Regulatory Commission Mr. Terry Winter, Chief Executive Officer, California Independent System Operator, Folsom, CA Mr. Jean Frizell, Attorney at Law, Gibbs & Bruns, LLP, Houston, TX Mr. Christian Yoder, Attorney at Law, UBS Warburg Energy LLC, Portland, OR Mr. Gary Fergus, Former legal representative for Enron Corp. Mr. Stephen Hall, Attorney at Law, UBS Warburg Energy LLC, Portland, OR Ms. Cynthia First, Commissioner, Snohomish Public Utility District, Everett, WA Mr. Gary Ackerman, Executive Director, Western Power Trading Forum, San Mateo, CA Mr. Henry Martinez, Assistant General Manager, Power Services, Los Angeles Department of Water & Power, Los Angeles, CA CRS-15 01/29/02 Senate Committee on Energy and Natural Resources “The Effect of the Enron Collapse on Energy Markets” Witness/Testimony– Mr. Patrick Wood III, Chairman, Federal Energy Regulatory Commission, Washington, D.C. Mr. William Nugent, President, National Association of Regulatory Commissioners, Washington, D.C. Mr. James Newsome, Chairman, Commodity Futures Trading Commission, Washington, D.C. Mr. Robert McCullough , Managing Partner, McCullough Research, Portland, OR Mr. Lawrence Makovich, Senior Director and Co-head, North American Energy Group, Cambridge, MA 02/27/02 Senate Committee on Finance “Retirement Security: Picking Up the Enron Pieces” Witness/Testimony– Mr. David M. Walker, Comptroller General, GAO Mr. William F. Sweetnam, Jr., Benefits Tax Counsel, Department of the Treasury Mr. Steven A. Kandarian, Executive Director, Pension Benefit Guaranty Corporation Mr. Jack L. VanDerhei, Ph.D., Research Director, Employee Benefit Research Institute Mr. R. Bradford Huss, Esq., Trucker Huss, San Francisco.(Testifying on behalf of the American Society of Pension Actuaries) 12/11/02 Senate Committee on Governmental Affairs “Oversight of Investment Banks’ Response to the Lessons of Enron” Witness/Testimony– Mr. Charles O. Prince, III, Chairman & CEO, Citigroup Global Corp & Investment Bank Mr. Richard Caplan, Managing Director & Co-Head, Salomon Smith Barney, North American, Credit/Citigroup Mr. David C. Bushnell, Managing Director, Citigroup/Salomon Barney Mr. William T. Fox, III, Managing Director, Global Power & Energy Group, Citibank/Citigroup Mr. Michael E. Patterson, Vice Chairman, J.P. Morgan Chase & Co. Mr. Robert W. Traband, Vice President, J.P. Morgan Chase & Co. Mr. Andrew T. Feldstein, Managing Director, Co-Head, J. P. Morgan Chase Co. Mr. Eric N. Peiffer, Vice President, J. P. Morgan Chase & Co. Ms. Muriel Siebert, President and Chairperson, Muriel Siebert & Co. Mr. Richard Spillen Kothen, Director, Division of Banking Supervision & Regulation, Federal Reserve, Washington Ms. Annette Nazareth, Director, Division of Market Regulation, U. S. Securities and Exchange Commission, Washington Mr. Douglas W. Roeder, Senior Deputy Comptroller of Large Bank Supervision, Office of the Comptroller of the Currency, Washington CRS-16 07/30/02 Senate Committee on Governmental Affairs “The Role of the Financial Institutions in Enron’s Collapse” Witness/Testimony— Mr. G. Kelly Martin, Senior Vice President and President of International Private Client, Merrill Lynch & Co. Mr. Robert Furst, Former Managing Director, Merrill Lynch & Co. Mr. Schuyler Tilney, Managing Director, Global Energy and Power, Merrill Lynch & Co. 03/20/02 Senate Committee on Governmental Affairs “Rating the Raters: Enron and the Credit Rating Agencies” Witness/Testimony– Mr. Ronald Barone, Managing Director, Standard & Poor’s Mr. John C. Diaz, Managing Director, Moody’s Investors Service Mr. Ralph G. Pellecchia, Senior Director, Fitch Ratings Mr. Isaac C. Hunt, Jr., Commissioner, Securities and Exchange Commission Mr. Jonathan R. Macey, J. DuPratt White Professor of Law, Cornell Law School Mr. Glenn L. Reynolds, Chief Executive Officer, Credit Sights, Inc. Mr. Steven L. Schwarcz, Professor of Law, Duke University 02/27/02 Senate Committee on Governmental Affairs “The Watchdogs Didn’t Bark: Enron and the Wall Street Analyst” Witness/Testimony– Mr. Anatol Feygin, J.P. Morgan Chase Mr. Richard Gross, Analyst, Equity Research Division, Lehman Brothers, Inc. Mr. Curt N. Launer, Managing Director, Equity Research Group, Credit Suisse First Boston Mr. Ray Niles, Citigroup Salomon Smith Barney Mr. Howard M. Schilit, Ph.D., CPA, President and Founder, Center for Financial Research & Analysis, Inc. Mr. Thomas A. Bowman, CFA, President and CEO, The Association for Investment Management and Research Mr. Robert R. Glauber, Chairman and CEO, National Association of Securities Dealers Mr. Charles L. Hill, Director, Financial Research, Thomson Financial Mr. Frank C. Torres III, Legislative Counsel, Consumers Union CRS-17 02/05/02 Senate Committee on Governmental Affairs “Retirement Insecurity: 401(k) Crisis at Enron” Witness/Testimony– Mr. William D. Miller, Jr., Business Manager & Financial Secretary, International Brotherhood of Electrical Workers, Local 125, Portland General Electric Ms. Deborah G. Perrotta, Former Senior Administrative Assistant, Enron Corp. Ms. Catheryn Graham, Total Benefits Administration Business Group, Hewitt Associates, LLC Ms. Cindy Y. Olson, Executive Vice President, Human Resources, Employee Relations & Building Services, Enron Corp. Ms. Mikie Rath, Benefits Manager, Enron Corp. Mr. Joseph P. Szathmary, Associate Northern Trust Retirement Consulting, LLC Ms. Karen W. Ferguson, Director, Pension Rights Center Mr. James A. Klein, President, American Benefits Council Mr.Erik D. Olsen, Member, Board of Directors, AARP Mr. Stephen M. Saxon, Society of Professional Administrators & Record Keepers Ms. Susan J. Stabile, Professor, St. John’s School of Law 01/24/02 Senate Committee on Governmental Affairs “The Fall of Enron: How Could It Have Happened?” Witness/Testimony– Mr. Arthur Levitt, Jr., Former Chairman, SEC Mr. Lynn E. Turner, Former Chief Accountant, SEC Mr. Bruce B. Henning, Director, Regulatory and Market Analysis Energy and Environmental Analysis, Inc. Mr. John H. Langbein, Sterling Professor of Law, Yale University Law School Mr. Frank Partnoy, Professor of Law, University of San Diego School of Law 02/07/02 Senate Committee on Health, Education, Labor, and Pensions “Protecting America’s Pensions: Lessons from the Enron Debacle” Witness/Testimony– Hon. Barbara Boxer, United States Senate Hon. Jon Corzine, United States Senate Hon. Ken Bentsen, United States House of Representatives Ms. Elaine Chao, Secretary, Department of Labor Mr. Steve Lacey, Portland General Electric worker, Portland, OR Mr. Jan Fleetham, Former Enron Corp. employee, Bloomington, MN Mr. Karl V. Farmer, Former Polaroid Employee, Lawrence, MA Mr. James Prentice, Chairman, Administrative Committee, Enron Corp. Savings Plan Dr. Alicia Munnell, Peter F. Drucker Chair in Management Sciences, Boston College Ms. Dallas L. Salisbury, President and CEO, Employee Benefits Research Institute CRS-18 Chronology 2003 March. 03/17/03 The Securities and Exchange Commission (SEC) charges four former Merrill Lynch executives with aiding and abetting Enron in committing securities fraud. The brokerage house will pay $80 million to settle its own case with the SEC. The four executives named in the complaint— Robert S. Furst, Schuyler M. Tilney, Daniel H. Bayly, and Thomas W. Davis—are contesting their charges. 03/07/02 Court appointed financial examiner Neal Batson issues subpoenas seeking testimony and documents from 68 corporate employees connected to Enron. 03/06/03 House Committee on Education and the Workforce approves H.R. 1000, Pension Security Act, by a vote of 29 to 19. The Act contains provisions that will allow employees who have been with a company for at least 3 years to sell the company stock in their 401(k) retirement plans. Feburary. 02/27/03 U.S. bankruptcy judge Arthur Gonzales denies a request by Enron to be added to a class-action lawsuit that was filed by company shareholders. The lawsuit names legal and financial corporations that helped Enron negotiate its complex transactions that resulted in bankruptcy. 02/13/03 Joint Committee on Taxation releases a three-volume investigative report on Enron’s federal tax and executive compensation issues. 02/07/03 U.S. bankruptcy judge Arthur Gonzales approves Enron’s petition to pay $29 million in employee retention bonuses. January. 01/04/03 Florida’s Attorney General Richard Dorn drops a year-long investigation of Alliance Capital Management after finding no evidence of racketeering. The company had invested Florida state pension funds into declining Enron stock, resulting in a loss of $300 million. 01/02/03 J.P. Morgan Chase announces that it has settled its legal dispute with 11 insurance companies that contested Enron-related surety bonds. 2002 December. 12/13/02 Federal Energy Regulation Commission judge Bruce Birchman states that energy companies (Enron Corp., Duke Energy, Dynegy, Mirant, Reliant Energy Company, and the Williams Company) overcharged the state of California by $1.8 billion. CRS-19 12/03/02 Philip Levy, J.P. Morgan Chase’s associate general counsel, testifies in federal court about his involvment with circular oil deals between Enron and J.P. Morgan. November. 11/26/02 Lawrence Lawyer, a former Enron finance employee, pleads guilty to filing false federal income tax returns on unreported money. He failed to report nearly $80,000 which he received from ex-Enron executive Michael Kopper. 11/22/02 Portland General Electric, an Enron utility based in Oregon, admits to technical violations regarding public disclosures of transactions with Enron Power Marketing. 11/16/02 Sherron Watkins, vice president of corporate development for Enron, resigns. 11/06/02 Former Enron Chief Financial Officer Andrew Fastow pleads not guilty to a 78-count federal indictment in Houston. October. 10/30/02 Federal officials file a 78-count indictment against Andrew Fastow. Charges against Fastow include: wire fraud, conspiracy to commit wire fraud, conspiracy to commit wire and securities fraud, obstruction of justice, money laundering, and money laundering conspiracy. Enron receives permission from U.S. bankruptcy judge Arthur Gonzales, to halt payment of legal fees for former Enron employees who are cooperating in government investigations of the corporation but who are not targets. 10/16/02 U.S. district judge Melinda Harmon sentences Arthur Andersen LLP to the maximum punishment of 5 years probation and a $500,000 fine for altering its documents relating to Enron. 10/02/02 Securities and Exchange Commission files a civil action complaint against Andrew Fastow at the U.S. District Court in Houston. In a separate court proceeding, the Justice Department files a criminal complaint that outlines five crimes against Andrew Fastow. Fastow provides bail of $5million. September. 09/25/02 LJM2 Co-Investment, an enterprise associated with past Enron assets and financial accounting practices, files for Chapter 11 bankruptcy protection in Dallas. 09/19/02 Merrill Lynch fires its vice chairman, Thomas Davis, and managing director of investment banking, Schuyler Tilney, for violation of corporate policies. 09/13/02 Enron task force prosecutor Thomas Hanusik asks U.S. Magistrate Frances Stacy to approve arrest warrants for three former British bankers: Gary Mulgrew, Giles Darby, and David Bermingham. CRS-20 09/04/02 Ohio Attorney General Betty Montgomery’s office withdraws from the federal class-action lawsuit against Enron. Ohio officials state they have a better chance in state courts to recover more of the losses to Ohio state pension funds. August. 08/29/02 U.S. bankruptcy judge Arthur Gonzales approves a $28.8 million severance agreement for nearly 4,200 former Enron employees. 08/21/02 Former Enron executive Michael J Kopper pleads guilty in federal court to conspiracy to commit wire fraud and conspiracy to engage in unlawful monetary transactions. Securities and Exchange Commission files a civil action complaint against Michael J. Kopper for violation of various federal securities laws. 08/15/02 Enron and Dynegy agree on litigation settlement. Dynegy will pay $25 million to Enron for wrongful termination of their merger attempt. U.S. bankruptcy judge Arthur Gonzales rules to grant 115 Enron employees legal waivers that exempt them from returning any of the bonuses they received prior to the corporation’s Chapter 11 filing. July. 07/09/02 President Bush delivers a speech before the corporate executives in New York City on corporate accountability and fraud. 07/03/02 U.S. bankruptcy judge Arthur Gonzales approves Enron’s request to obtain a $250 million credit line. June. 06/27/02 The Justice Department has charged three former British bankers of National Westminster Bank Plc (“Nat West”)—Gary Steven Mulgrew, 40, Giles Robert Hugh Darby, 40, and David John Bermingham, 39 —with wire fraud in an alleged $7.3 million scheme involving Enron. 06/20/02 The Security and Exchange Commission proposed a regulatory process creating a nine-member Public Accountability Board to oversee auditors. 06/14/02 Arthur Andersen LLP is found guilty of obstruction of justice by a nine-man, three-woman jury, after more than 72 hours of deliberations. Andersen acknowledges that the jury verdict will effectively end the firm’s audit practice as early as August 31, 2002, depending on the amount of time needed for the government and Andersen to brief and argue post-trial motions. 06/06/02 Enron’s board accepts the resignations, effective today, of the four remaining long-standing directors, Robert A. Belfer, Norman P. Blake, Dr. Wendy L. Gramm, and Herbert S. Winokur, Jr. CRS-21 May. 05/30/02 Dr. John Mendelsohn, president of the University of Texas M.D. Anderson Cancer Center, and Frank Savage, former chairman of Alliance Capital Management, resign from the Enron Corp. board of directors. 05/22/02 The White House releases a seven-page list of contacts between Administration officials and Enron executives . The Enron Corp. board of directors announces today the election of John W. Ballantine and Corbin A. McNeill, Jr., to the company’s board of directors. 05/03/02 Enron’s interim CEO, Stephen F. Cooper, meets with the committee of creditors to discuss a plan to create a new power and pipeline company in North, Central, and South America. April. 04/24/02 The House passed H.R. 3763, a measure on financial accounting oversight, by a vote of 334 to 90. 04/23/02 The Federal Regulatory Commission announces that it has contracted with outside experts to assist with its fact-finding investigation on manipulation of energy prices. The outside experts are: Hendrik Bessembinder, University of Utah; Edward P. Kahn, Analysis Group/Economics; Robert S. Pindyk, Massachusetts Institute of Technology; Chester S. Spatt, Carnegie Mellon University; and Michael J. Quinn, Analysis Group/Economics. In addition, the Commission selected the Aspen System Corporation, which specializes in electronic data retrieval and analysis, to help with its investigation. 4/22/02 The Federal Energy Regulatory Commission approves Enron’s sale of its wholesale power and natural gas trading operations to UBS Warburg, a subsidiary of Switzerland-based UBS AG. Enron’s SEC filing indicates that the value of its assets was overstated by approximately $24 billion. 04/19/02 Jeff McMahon, president and chief operating officer of Enron Corp., announces his resignation from the company, effective June 1, 2002. 04/16/02 The House Committee on Financial Services approves H.R. 3763, a measure on financial accounting oversight, by a vote of 49 to 12. 04/10/02 U.S. bankruptcy judge Arthur Gonzales approves the purchase of Enron Espana Generacion by Iberdrola, a Spanish energy producer. David Duncan, former auditor of Arthur Andersen LLP, enters a guilty plea to a single felony charge of obstructing justice, and he agrees to serve as a federal government witness regarding its investigations into Enron and Arthur Andersen LLP. CRS-22 04/09/02 U.S. bankruptcy judge Arthur Gonzales orders an independent examiner to probe Enron Corp. and the financial transactions that helped propel it into bankruptcy after requests for an investigation by securities regulators and shareholders. 04/08/02 Arthur Andersen LLP announces a reduction of its U.S. workforce by approximately 7000 positions during the next 2 months. 04/05/02 U.S. bankruptcy judge Arthur Gonzales gives approval to make acting Enron chief executive Stephen F. Cooper a full-time employee at $1.32 million in annual salary. March. 03/27/02 U.S. Trustee overseeing Enron Corp.’s Chapter 11 reorganization appoints a five-member committee, in order that workers will have input into the bankruptcy proceedings. New Power Holdings, a proposed Enron Corp. spinoff to Centrica (Britain’s largest natural gas supplier), was jeopardized when bankruptcy judge Arthur Gonzalez refused to release Centrica from potential liability for Enron’s taxes. The proposed deal would pay Enron $56.5 million for its 44% stake in New Power. The Chairman of the Senate Committee on Government Affairs seeks information from the current Administration and the Archivist of the United States on all national energy policy communications concerning Enron, since 1992, with the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Energy and Regulatory Commission, the Departments of Labor, Energy, and Commerce, the Export Import Bank, and the Overseas Private Investment Corporation. The Chairman sent letters to members of the Vice President’s energy task force, seeking similar information. 03/26/02 Joseph Berardino, Arthur Andersen LLP chief executive, resigns. 03/23/02 Senate Committee on Governmental Affairs issues 29 subpoenas to Enron Corp.; its former auditing firm, Arthur Andersen LLP; and members of the Andersen board going back to 1992. 03/22/02 The Andersen Independent Oversight Board outlines a new framework for the reform and rebuilding of Arthur Andersen LLP as a firm dedicated, first and foremost, to quality auditing. 03/21/02 Senate Committee on Health, Education, Labor and Pensions approves, by a vote of 11-10, S. 1992, a bill with provisions affecting employer stock in 401(k) retirement plans. 03/19/02 House Committee on Education and the Workforce approves, by a vote of 28-19, H.R. 3762, a bill with provisions affecting employer stock in 401(k) retirement plans. The Securities and Exchange Commission announces final plans for completing reviews of auditor independence systems and controls for each of the five largest independent auditing firms. CRS-23 03/15/02 The General Services Administration suspends Enron Corp., related entities, several former Enron officials, Arthur Andersen LLP, and a former Andersen official from conducting new business with the federal government. The suspension is for a period of 12 months for all parties except for Andersen, whose suspension is for the duration of the indictment. The Federal Energy Regulatory Commission issues a subpoena to Enron Corp. to produce certain documents on or before 3/29/02. Federal Judge Melinda Harmon, U.S. District Court for the Southern District of Texas in Houston, names the University of California as lead plaintiff in a shareholders’ class action lawsuit against Enron Corp. senior executives and its former accounting firm, Arthur Andersen LLP. 03/14/02 Deputy Attorney General Larry Thompson holds a news conference regarding the Arthur Andersen indictment. House Committee on Ways and Means approves, by a vote of 36-2, H.R. 3669, a bill with provisions affecting employer stock in 401(k) retirement plans. The U.S. Department of Labor announces that State Street Bank and Trust of Boston, Mass., will act as the independent fiduciary for Enron Corp.’s retirement plans. 03/11/02 The Andersen Independent Oversight Board releases a preliminary report on the reform and rebuilding of Arthur Andersen LLP. 03/07/02 President Bush proposes his Ten-Point Plan to improve corporate responsibility. 03/06/02 U.S. bankruptcy judge Arthur Gonzales gives approval for $1,100 for each laid-off Enron employee. 03/01/02 U.S. Treasury provides access to some Enron-related documents via its frequently requested FOIA-processed records on its Web site. February. 02/27/02 U.S. bankruptcy judge Arthur Gonzales rules that Enron Corp. executives cannot secure millions of dollars from the company for their legal fees. 02/27/02 U.S. General Accounting Office releases a report on Enron and its private pension plan. 02/22/02 U.S. bankruptcy judge Arthur Gonzales rules on the appointment of an examiner in the Chapter 11 case of Enron North America. The examiner is to be selected by the Office of the U.S. Trustee. Thirty-three states ask Judge Arthur Gonzales to block Enron Corp. executives from securing advance money for their legal defense from the bankruptcy estate. CRS-24 02/20/02 James Derrick, Jr., Enron Corp.’s executive vice president and general counsel, resigns. 02/18/02 The Financial Services Authority (United Kingdom) announces an investigation into the role of British bankers who helped Enron Corp. create financing schemes. 02/18/02 UBS Warburg reports that its bid for Enron Corp.’s North American wholesale electricity and natural gas trading business has been approved by the United States Bankruptcy Court in New York. 02/13/02 The Federal Energy Regulatory Commission releases communications of an investigation showing how Enron Corp., through its affiliates, used its market position to distort electric and natural gas markets in the West. 02/11/02 The former EnronOline, Enron Corp.’s Internet-based transaction system, makes its reappearance as UBS Warburg Energy (UBSWenergy.com). Lawrence Whalley, Enron’s former president, assumes the same position with UBS Warburg Energy. 02/08/02 UBS Warburg announces today that it has completed the transaction under which it has obtained from Enron Corp. an exclusive license to the technology to operate North American natural gas and power trading operations. 02/05/02 The Enron Europe group, the European bankrupted arm of Enron Corp., has liabilities of more than $2 billion, according to PricewaterhouseCoopers. 02/04/02 Kenneth L. Lay resigns from Enron Corp. board of directors. 02/3/02 Andersen Worldwide, S.C., announces that former Federal Reserve Board Chairman Paul A. Volcker has agreed to chair an Independent Oversight Board (IOB) to work with Arthur Andersen LLP in making fundamental changes in its audit practice. 02/01/02 Enron Corp.’s Special Investigative Committee of the board of directors releases its report, known as the Powers Report. January. 01/31/02 Governor of California requests the U.S. Federal Energy Regulatory Commission to investigate possible energy market manipulation by Enron Corp. 01/28/02 The Severed Enron Employees Coalition files suit in order to recoup losses by participants in Enron Corp.’s bankrupt 401k retirement plan. 01/27/02 Enron Corp. board names Stephen F. Cooper interim CEO and chief restructing officer. 01/25/02 J. Clifford Baxter, former Enron Corp. vice chairman, is found dead. CRS-25 01/24/02 Price-Waterhouse-Coopers reports that Enron Europe’s liabilities are in excess of $1 billion, but a little more than $100 million is anticipated to be generated through settlement of outstanding contracts. 01/23/02 Enron Corp. announces that Kenneth L. Lay has resigned as Chairman of the Board and Chief Executive Officer of Enron Corp. Mr. Lay, who will also retire as an Enron employee, will remain on the company’s board of directors. 01/17/02 Enron Corp. fires Arthur Andersen LLP in all capacities. 01/15/02 Arthur Andersen fires David B. Duncan, lead partner on the Enron Corp. account. Thomas H. Bauer, Debra A. Cash, and Roger D. Willard are placed on administrative leave. Houston-based partners being relieved of management responsibilities are: D. Stephen Goddard, Jr., Michael M. Lowther, Gary B. Goolsby, and Michael C. Odom. New York Stock Exchange suspends trading in Enron Corp. shares. 01/14/02 Sale of Enron’s energy trading operations to UBS, a Swiss financial service conglomerate is made public. 01/11/02 Federal bankruptcy judge Arthur Gonzalez rules that Enron Corp.’s bankruptcy (Chapter 11) case will remain in the state of New York. 01/10/02 U.S. Attorney General John Ashcroft and David Ayres, his chief of staff, recuse themselves from the Justice Department’s criminal investigation of Enron Corp. Arthur Anderson notifies the SEC, the FBI, and several congressional committees that a significant but undetermined number of Enronrelated electronic and papers documents were destroyed. 01/10/02 Administration acknowledges that Kenneth L. Lay met with Treasury Secretary last October, regarding concerns of Enron Corp.’s not being able to meet its financial obligations. 01/09/02 U.S. Department of Justice confirms that an Enron-related criminal investigation has begun. 01/04/02 Enron Energy Services group wins approval of the U.S. Bankruptcy Court, Southern District of New York, to void nearly 700 contracts to supply power and gas to businesses and local and state government entities throughout the United States. CRS-26 2001 12/13/01 The SEC announces that on December 12, 2001, it filed a subpoena non-compliance enforcement action in U.S. District Court for the District of Columbia against Andrew S. Fastow, the former chief financial officer of Enron Corp. Pursuant to a subpoena issued on October 31, 2001, Mr. Fastow was obligated to appear for testimony before the SEC staff at 9:30 a.m. on December 12, 2001. Mr. Fastow chose not to appear and instead informed the SEC staff, through counsel, that he would not appear as required by the subpoena. 12/11/01 The California Public Utilities Commission (PUC) orders an investigation to assess the effects of Enron Corp.’s bankruptcy filing on California customers. 12/10/01 SEC chairman, Harvey L. Pitt, delivers speech about Enron Corp.’s collapse. 12/03/01 Enron Corp. announces that it has arranged up to $1.5 billion of debtor-in-possession (DIP) financing. The financing, arranged by Citigroup and J.P. Morgan Chase, will be syndicated and is secured by substantially all of the company’s assets. Enron Corp. announces the layoff of more than 4,000 company employees. 12/02/01 Enron Corp. and 13 of its subsidiaries file voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. 11/30/01 Enron Corp. lays off 1,100 workers in Britain. 11/28/01 Dynegy Inc. and Enron Corp. merger agreement dissolves. Enron Corp.’s bonds downgraded to below investment grade, or junk bond status. 11/13/01 Enron Corp. reports that the board of directors has elected Raymond M. Bowen, Jr., executive vice president–finance and treasurer. Mr. Bowen had been serving as chief operating officer of Enron Industrial Markets. 11/09/01 Dynegy Inc. and Enron Corp. agree to a merger. 11/08/01 Enron Corp. provides additional information about related parties and off-balance sheet transactions and restates earnings for 1997-2001. Enron Corp. announces that it has filed its third quarter 2001 10-Q report with the Securities and Exchange Commission. 11/07/01 Azurix Corp., Enron Corp.’s United Kingdom water subsidiary, announces that it has completed the sale of its wholly owned subsidiaries, Azurix North America Corp. and Azurix Industrial Corp., to American Water Works Company, Inc., which will assume $6.1 million of previous debt. CRS-27 11/01/01 Enron Corp. announces that J.P. Morgan and Salomon Smith Barney, Inc. have executed commitment letters to provide $1 billion of secured credit lines supported by Enron’s Northern Natural Gas Company and Transwestern Pipeline Company assets. 10/31/01 Enron Corp.’s board of directors appoints a Special Committee, to be chaired by William Powers, Jr., to examine and take any appropriate actions with respect to transactions between Enron and entities connected to related parties. The board also reports that the SEC has opened a formal investigation into certain of the matters that are the subject of current press accounts and that previously were the subject of its informal inquiry. 10/24/01 Jeff McMahon replaces Andrew Fastow as Enron Corp.’s chief financial officer. 10/22/01 Enron Corp. announces that the SEC has requested that Enron voluntarily provide information regarding certain related party transactions. 10/16/01 Enron, during its posting of third quarter earnings, reports its first loss in 4 years. 09/14/01 Enron Corp. reports that it is donating $1 million to support the relief and recovery efforts arising from the terrorist actions of Sept. 11. 08/28/01 Enron Corp. promotes Greg Whalley to president and chief operating officer and Mark Frevert to vice chairman. 08/14/01 Board of directors for Enron Corp. reports a regular quarterly dividend of $0.125 per share on the corporation’s common stock to shareholders. The indicated annual rate is $0.50 per share. Jeffrey K. Skilling resigns as Enron Corp.’s president and CEO. He will continue to serve as a consultant to Enron and its board of directors. Kenneth L. Lay, currently Enron’s chairman of the board, will assume the additional responsibilities of president and CEO. Sherron Watkins subsequently sends Kenneth L. Lay an unsigned memorandum warning of accounting irregularities and possible scandals to come. 05/02/01 Enron Corp.’s vice chairman, J. Clifford Baxter, resigns. 04/26/01 Enron Corp. and Sierra Pacific Resources announce they have agreed to terminate their purchase and sale agreement for Enron’s wholly owned electric utility subsidiary Portland General Electric. 03/09/01 Enron Broadband Services announces that it has terminated its exclusive relationship with Blockbuster, Inc. 02/12/01 Jeffrey K. Skilling becomes CEO of Enron Corp. 01/30/01 Enron Corp. announces pricing of 20-year, zero coupon convertible senior debt securities. Gross proceeds of this offering will be $1.25 billion. The securities will carry a 2.125% yield to maturity with an aggregate face value of $1.90 billion, convertible into common stock at an initial premium of 45%. CRS-28 01/19/01 Enron Energy Services and Owens-Illinois, Inc. announce a 10-year energy management agreement. 01/16/01 Kenneth L. Lay becomes an adviser on the Administration’s transition team on energy. 2000 12/18/00 Broadband Services, a wholly-owned subsidiary of Enron Corp., and Blockbuster, Inc., announces it has begun delivering movies via the Blockbuster Entertainment On-Demand service over Enron’s broadband network in Seattle, Portland, OR, and Salt Lake City, UT. 12/13/00 Enron Corp. announces that Jeffrey K. Skilling has been elected CEO effective Feb. 12, 2001, assuming this role in addition to those of president and chief operating officer. Kenneth L. Lay will continue to serve as chairman of the board. 12/07/00 London’s Financial Times Energy (FT Energy) names Enron Corp. company of the year. 10/05/00 New Power Company, an energy trading company via the Internet, initial public offering of shares is priced at $21 per share. 08/23/00 Enron’s Corp. stock reaches record high of $90.75 a share. 07/19/00 Blockbuster and Enron Broadband Services announce a 20-year agreement to launch entertainment on-demand service through Enron Intelligent Network. 05/16/00 Enron Corp. with IBM and AOL as investors form an independent company, New Power Company. Headed by H. Eugene Lockhart, New Power will market power and natural gas over the Internet to homes and businesses. 05/02/00 Enron Corp. begins to provide bandwidth products via EnronOnline. 04/18/00 First appearance of Raptor, special-purpose entity to remove certain investment losses from Enron Corp.’s books. 03/09/00 Enron Corp. announces the launch of the first online sulfur dioxide emissions allowance auction. The auction will be accessible through Enron’s Internet-based transaction system, EnronOnline. 02/23/00 Enron Corp. starts Enroncredit.Com, a real-time credit department for business-to-business customers. 01/20/00 Sun Microsystems and Enron Corp. agree to accelerate the adoption of broadband services. Enron Corp. hosts its annual equity analyst conference in Houston. Kenneth L. Lay, chairman and CEO, highlights Enron’s 700% return to shareholders over the past decade. 01/10/00 Fortune magazine rates Enron Corp. 24th of its 100 best companies to work for in America. CRS-29 1999 12/02/99 Enron Communications announces its first commodity bandwidth trade. 11/09/99 U.S. Treasury releases the Report of the President’s Working Group on Financial Markets: “Over the Counter Derivatives Markets and the Commodity Exchange Act.” 10/26/99 Enron Corp. announces the launch of EnronOnline, a global Internet-based transaction system for wholesale energy and other commodities. 10/21/99 Nelson Mandela, former president of South Africa, to accept the prestigious Enron Prize for Distinguished Public Service from the James A. Baker III Institute for Public Policy of Rice University. 07/22/99 Steven J. Kean, executive vice president of Enron Corp., testifies before the House Committee on Commerce, Subcommittee on Energy and Power. 07/20/99 Enron Corp. and Enron Oil & Gas Company (EOG) announce a transaction to establish EOG as a widely held public company that will be independent of Enron. Under the share exchange agreement, Enron Corp. will exchange 62.27 million of its 82.27 million shares of EOG common stock for EOG’s China and India operations. In connection with the exchange, EOG will contribute $600 million in cash to one of EOG’s India subsidiaries that will be transferred to Enron. The $600 million will be used to finance international activities. 07/15/99 Steven J. Kean, executive vice president, Enron Corp. , testifies before the Senate Committee on Energy and Natural Resources. (Testifying on behalf of the Electric Power Supply Association) 07/13/99 Ground breaking ceremony for Enron Corp.’s new 40-story office tower in Houston. 07/01/99 Roger Fragua, manager, American Indian affairs, Enron Corp., testifies before the House Committee on Resources, Subcommittee on Water and Power. 07/01/99 Enron Corp. promotes Joseph Stutton to vice chairman. 05/20/99 Enron Communications announced a plan to commence the trading of bandwidth as a commodity. 04/14/99 John Hardy, Jr., vice president, project finance, Enron International, testifies before the House Committee on International Relations, Subcommittee on International Economic Policy and Trade. (Testifying on behalf of the Coalition for Employment Through Exports, International Energy Development Council, and the National Foreign Trade Council) 04/07/99 Houston Astros baseball franchise and Enron Corp. agree to name the major league ballpark “Enron Field,” part of a 30-year contract. CRS-30 02/03/99 Tim Rebhorn, commercial director of iron and steel initiatives, Enron International, testifies before the House Committee on Ways and Means, Subcommittee on Trade. 02/03/99 Rebecca A. McDonald becomes executive managing director of Enron International. 02/02/99 Enron Corp. to issue 12 million shares of common stock. 01/21/99 Enron Communications and Realnetworks form an alliance to deliver broadband steering media service. 1998 09/24/98 Steven J. Kean, senior vice president of government affairs, Enron, testifies before the Senate Committee on Energy and Natural Resources. 07/24/98 Enron Corp. forms Global Water Company. Enron’s purchase of Wessex Water (England) provides the basis of Azurix, Enron’s United Kingdom water subsidiary. 05/20/98 Mary Joyce, senior director of compensation and benefits, Enron Corp., testifies before the House Committee on Education and the Workforce, Subcommittee on Oversight and Investigations. Elizabeth A. Tilney, senior vice president, advertising, communications and organizational development, Enron Corp., testifies before the House Committee on Education and the Workforce, Subcommittee on Oversight and Investigations. 01/19/98 CalPERS, the nation’s largest public pension fund, commits $500 million to a $1 billion partnership (JEDI 2) established with a direct investment vehicle, Enron II. Enron II is the second investment partnership between CalPERS and Enron Corp. 01/15/98 Enron Corp. signs a power agreement with Pacific Telesis. 01/14/98 Ralph Hodge, chairman, and David Lewis, vice president, both of Enron Europe, provide testimony before the Trade and Industry Select Committee of the House of Commons. 1997 10/23/97 Enron Corp. makes an entry into the California electricity market. 10/13/97 Mikhail Gorbachev, former president of the Soviet Union, to accept the prestigious Enron Prize for Distinguished Public Service from the James A. Baker III Institute for Public Policy of Rice University. 07/31/97 Edmund P. Segner III, executive vice president and chief of staff, Enron, testifies before the House Committee on Resources, Subcommittee on Energy and Natural Resources. 06/04/97 Enron Corp. and Portland General Corp., a holding company, receive final merger approval from Oregon Public Utility Commission. CRS-31 05/09/97 Jeffrey K. Skilling, president and chief operating officer, Enron Corp., testifies before the House Committee on Commerce, Subcommittee on Energy and Power. 05/01/97 Enron Corp. and Amtrak agree to a wholesale pact for purchase of electrical power. 04/16/97 Mark Haedicke, general counsel and managing director, Enron Capital and Trade Resources Corp., testifies before the House Committee on Agriculture, Subcommittee on Risk Management and Speciality Crops. (Testifying on behalf of the International Swaps and Derivatives Association.) 03/19/97 Enron Renewable Energy Corp., a majority-owned subsidiary of Enron Corp., announces that its subsidiary, Zond Corporation, has signed a major contract with MidAmerican Energy Company. This is the largest wind energy supply contract in history. 03/16/97 Linda F. Powers, senior vice president, Global Finance, Enron International, testifies before the House Committee on International Relations, Subcommittee on International Economic Policy and Trade. 03/06/97 Jeffrey Skilling, president and chief operating officer, Enron Corp., testifies before the Senate Committee Energy and Natural Resources 1996 12/01/96 Jeffrey K. Skilling becomes president and chief operating officer of Enron Corp. 10/08/96 Enron Corp. consortium begins construction of Trakya power project in Turkey. 06/27/96 Andrew N. Hoyle, vice president–marketing, Enron Oil & Gas Company, testifies before the House Committee on Resources, Subcommittee on Energy and Mineral Resources. 06/03/96 Enron Europe opens an office in Norway, Enron Nordic Energy. 05/15/96 Kenneth L. Lay, chairman and CEO, Enron Corp. , testifies before the House Committee on Commerce, Subcommittee on Energy and Power. 04/23/96 Ken Dorland, representing Enron Corp., testifies before the House Committee on Ways and Means, Subcommittee on Trade. 02/29/96 Harvey Forest, CEO, Solarex Business Unit of Amoco/Enron Solar, testifies before the House Committee on Appropriations, Subcommittee on Energy and Water Development. 1995 12/21/95 Enron Europe opens trading operations in London. CRS-32 04/04/95 Linda F. Powers, vice president, Global Finance, Enron Development Corp., testifies before the House Committee on International Relations. 03/30/95 Linda F. Powers, vice president, Global Finance, Enron Development Corp. testifies before the Senate Committee on Foreign Relations. 03/23/95 Kenneth L. Lay, chairman of Enron Corp., testifies before the House Committee on Appropriations, Subcommittee on Foreign Operations, Export Financing, and Related Programs. 03/07/95 Rebecca P. Mark, chairman and CEO, Enron Development Corp., testifies before the Senate Committee on Foreign Relations, Subcommittee on Near Eastern and South Asian Affairs. 02/10/95 Forrest E. Hoglund, chairman and CEO of Enron Oil & Gas Company, testifies before the House Ways and Means Subcommittee on Trade. 01/31/95 Linda F. Powers, vice president, Global Finance, Enron Development Corp., testifies before the Committee on Appropriations, Subcommittee on Foreign Operations. 1994 10/00/94 Enron Corp. to form new company, Enron Global Power & Pipelines, for developing-nation projects. 06/13/94 Robert H. Butts becomes vice president and comptroller of Enron Corp. 06/03/94 Enron Power Marketing and Citizens Power & Light continue negotiating energy commodity deals in which they diminish fluctuations in electricity prices to their customers and link the customer’s buy or sell price to the price of another commodity. 1993 09/23/93 Kenneth L. Lay, Chairman and CEO, Enron Corp., testifies before the House Ways and Means Committee, Subcommittee on Trade (Testifying on behalf of Greater Houston Partnership). 06/30/93 Enron Capital Corp., a subsidiary of Enron Gas Services Corp. (EGS), and the California Public Employees Retirement System (CalPERS) announce that they have agreed to form the Joint Energy Development Investments Limited Partnership (JEDI). Each contributed $250 million to the partnership. 05/06/93 Enron Corp.’s UK Ltd. power plant begins operation in Teesside, England. 1992 12/16/92 Enron Corp. and a consortium acquire Transportadora de Gas del Sur SA, operator of the southern Argentina pipeline system. This is Enron’s first presence in South America. CRS-33 1991 03/19/91 Forrest E. Hoglund, chairman and president of Enron Oil & Gas Co, testifies before the Texas Railroad Commission. 1990 07/17/90 Jeffrey K. Skilling becomes chairman and chief executive officer of Enron Finance Corp., a subsidiary of Enron Corp. 07/11/90 In U.S. Southern District of New York, a former Enron Corp. vice president, who was also secretary and treasurer, is sentenced to 400 hours of community service and required to pay an unspecified amount of restitution to Enron Corp. for fraud. Another former Enron executive was sentenced the previous month to one year plus one day in prison, and fined more than $5 million for the same crime. 1989 11/16/89 Richard Kinder, vice chairman of Enron Corp., announces before the New York Society of Security Analysts, a shift in the psychology of natural gas users away from spot purchases. 1988 06/14/88 Enron Corp. announces it has established a wholly owned subsidiary, Enron UK Ltd. in London, England, where the power industry has been deregulated. Enron Corp.’s corporate strategy shift – to capture unregulated markets in addition to its regulated pipeline operations – is disclosed to corporate officials at a meeting that becomes known as the “Come to Jesus” meeting. 1987 03/12/87 Kenneth L. Lay, Chairman and CEO of Enron Corp., testifies before the Senate Subcommittee on Energy Regulation and Conservation. 01/25/87 Enron Corp. reports that its oil trading subsidiary, Enron Oil Corp., lost nearly $1 billion in unauthorized trading. Enron Corp. eventually pays $142 million for violating trading limits. 1986 04/10/86 Stockholders at the annual meeting of HNG/InterNorth approve changing the corporation’s name to Enron Corp. 1985 07/17/85 Stockholders of Houston Natural Gas Corporation (HNG) agree to a $2.3 billion merger with InterNorth Inc., forming America’s secondlargest pipeline system and the first nationwide natural gas pipeline network. Management reports it would, in the interim, conduct its business as HNG/InterNorth. CRS-34 Web Sites for Other Government and Industry Agencies Having Oversight Authority on Enron Related Issues American Institute of Certified Public Accountants [http://www.aicpa.org/index.htm] California Public Utilities Commission [http://my.ca.gov/state/portal/myca_homepage.jsp] Financial Accounting Standards Board [http://www.fasb.org/] Texas Workforce Commission [http://www.twc.state.tx.us/] U.S. Bankruptcy Court Southern District of New York [http://www.nysb.uscourts.gov/] U.S. Department of Labor, Pension and Welfare Benefits Administration [http://www.dol.gov/dol/pwba/] Table 1. Monthly Adjusted Stock Prices – 2/29/00 to 1/31/02a Date Close Price Date Close Price 01/31/02 0.414 01/31/01 80.000 12/31/01 0.600 12/29/00 83.125 11/30/01 0.260 11/30/00 64.750 10/31/01 13.900 10/31/00 82.062 09/28/01 27.230 09/29/00 87.641 08/31/01 34.990 08/31/00 84.875 07/31/01 45.350 07/31/00 73.750 06/29/01 49.000 06/30/00 64.500 05/31/01 52.910 05/31/00 72.875 04/30/01 62.720 04/28/00 69.688 03/30/01 58.100 03/31/00 74.875 02/28/01 68.500 02/29/00 68.750 Source: DIALOG–Tradeline–ENRN–Q Enron. Prices are in U.S. currency as reported by the New York Stock Exchange. a. The New York Stock Exchange suspended trading in Enron shares on January 15, 2002.