NY Times
Enron executives pressed UBS PaineWebber to take action against a broker who advised some Enron employees to sell their shares in August and was fired by the brokerage firm within hours of the complaint, according to e-mail messages released by Congressional investigators.
"The broker, Chung Wu, of PaineWebber's Houston office, sent a message to clients early on Aug. 21 warning that Enron's 'financial situation is deteriorating' and that they should 'take some money off the table.' That afternoon, an Enron executive in charge of its stock option program sent a stern message to PaineWebber executives, including the Houston branch office manager. 'Please handle this situation,' the newly released message stated. 'This is extremely disturbing to me.'
"PaineWebber fired Mr. Wu less than three hours later.
"That evening, the firm retracted Mr. Wu's assessment of Enron's stock ? then about $36 ? by sending his clients an optimistic report that Enron was 'likely heading higher than lower from here on out.' A few months later, the stock was worthless, and the company was in bankruptcy court."
Thank you, Paine Webber.
[Registration is free]
Enron executives pressed UBS PaineWebber to take action against a broker who advised some Enron employees to sell their shares in August and was fired by the brokerage firm within hours of the complaint, according to e-mail messages released by Congressional investigators.
"The broker, Chung Wu, of PaineWebber's Houston office, sent a message to clients early on Aug. 21 warning that Enron's 'financial situation is deteriorating' and that they should 'take some money off the table.' That afternoon, an Enron executive in charge of its stock option program sent a stern message to PaineWebber executives, including the Houston branch office manager. 'Please handle this situation,' the newly released message stated. 'This is extremely disturbing to me.'
"PaineWebber fired Mr. Wu less than three hours later.
"That evening, the firm retracted Mr. Wu's assessment of Enron's stock ? then about $36 ? by sending his clients an optimistic report that Enron was 'likely heading higher than lower from here on out.' A few months later, the stock was worthless, and the company was in bankruptcy court."
Thank you, Paine Webber.
[Registration is free]
