A few days ago, I saw an article on some website about Andy Fastow. I can no longer find it but the gist was that the reporter had tracked down Lea Fastow and Lea – who by all accounts is a sweet, lovely woman – was gracious enough to talk to the reporter instead of slamming the phone down. Lea said that she and her family were at a friend’s house on a “mini-vaction” and that they’re all just trying to relax.
It was by any measure a truly gracious response to the reporter’s questions. But the report was full of snickering sarcasm and left one with the feeling that a Christmas effigy was in order.
Incidentally, Sherron Watkins defended Andy Fastow in that article. She stated something to the effect that Jeff Skilling was the real bad guy. I can’t remember the exact words because every time she opens her mouth, she sounds like the Peanuts character’s teacher. Wahwhahahahaha.
I bristled at the reporter’s usage of Watkins in the report. Who cares what she thinks of Andy Fastow? And hasn’t she graced us with her opinions on everything from Jeff Skilling’s competence to the United States’ prosecution of corporate crime? Maybe it’s time to shut her pie hole and go away. Her expiration date was about ten years ago.
I am tired of hearing from Sherron Watkins at all about anything. But I am also frustrated by people jumping all over Andy Fastow without thinking – and I include the corpulent moron in this statement. Andy Fastow and Jeff Skilling were both persecuted mercilessly in the media. Both were accused of things they didn’t do. Andy has rejoined society and officially speaking, the DOJ has no problem with him so we shouldn’t either.
I fear that Andy Fastow is going to bear the brunt of the Enron collapse, and that isn’t quite fair. Even if he stole $100 million from the company, it would not have been enough to topple Enron. The liquidity crisis wasn’t caused because he took all the cash, as some people seem to think. He is not a choir boy, but it is far too easy to put all the blame onto him. It is too simple an answer. And even if he is guilty of everything you believe, the least you could do is leave his wife alone.
Hey did watskins point out that she lied, wanted to blackmail mr. Skilling,( in her book she writes this, she knew he was too smart and knew his company to well believe her) and ruined the company in that article? Or how she tried to sleep her way to get power- people say mean things about you , but least you retuned email. Maybe she with answering for anything. As far the fastows, I respect their grace in all this. His only crime was lying about and to mr Skilling. I hope he has a great life.
I like your article on this. Yes he did repay his debt (regardless of whether or not people agree as to what it is he did wrong or not) By the laws he was tried and convicted of, if he is out, its over. I understand finance and economics to some degree and I do know those financial instruments he created did some things that shook investor confidence…and rightly so. The markets probably werent ready for an energy company to recieve wall street mark to market accounting treatment for one. Enron’s business wasnt entirely in the commodoties field. When you mix all of these businesses together (Asset based and virtual asset based businesses) there has to be a better balance than what they did. Enron needed a much larger volumr of ACTUAL cash flow to stabilize their positions in the commodoties and derivatives market, as well as natural gas transportation, infrastructure, etc. It takes tons of cash to maintain this stuff, explore, develop and grow that type of business. They either should have balanced it out better, or sold off all of their interests in infrastructure and focused on Trading. (then mark to market would have made more sense and not been as dangerous) You cant get that cash you need in the door with Mark to Market. They just grew to damn fast and tried to save themselves with Andy and his SPEs.. . And I am not talking about just in the death spiral. I am talking not long after the Gas Bank was started. . Granted, the media fanned the fire of the liquidity crisis quite a bit. But it is what it is. The point I am bringing up is one of agreement. No, Andy fastows “Management fees” from LJM, LJMII etc didnt break the company..Hardly a blip to them at the time. The liquidity crisis also was not caused by this. However, the board of directors enabled Andy to create the financials that doomed the company. Andy’s job was to make the stock price go up. He sure bent the law doing it, but if he wanted to keep his job, results is what you get.
Cmon cara. Andy committed fraud, made up some stuff about Jeff to get a shorter sentence, and deserves nothing. Nothing. And believe you me, that comes with plenty of thought. And knowledge.