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Wednesday, February 01, 2006

ENRON TRIAL - DAY 1 of Testimony

As the Houston Chronicle reports, the former head of investor relations for Enron, Mark Koenig, took the stand today. Koenig testified that the company purposefully overstated earnings in both the 4th quarter of 1999 and the second quarter of 2000, each time to surpass analysts' expectations and boost Enron's stock price.

Koenig is expected to be on the stand for a few days. As head of investor relations, Koenig monitored the crucial relationship between Enron and Wall Street and to some extent, between Enron and the business press. Koenig's successful ongoing efforts helped ease any possible concerns on Wall Street about Enron's financial and accounting practices.

While Koenig managed Wall Street, Lay managed the government side of things, spreading millions of Enron dollars around to state and federal politicians in campaign contributions, co-opting our representatives into silence or active participation in Enron's global schemes.

With Wall Street and government asleep at the wheel, the company was able to cook its books unto its bankrupt death.

The Chronicle is also blogging the trail. You can check that out here, which has details on Judge Sim Lake dismissing jurors early for the day after hours of somewhat complex financial testimony.

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