Liberally Conservative

"Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children's children what it was once like in the United States where men were free....... ~Ronald Reagan~

Monday, February 27, 2006

Enron's Ken Lay Had A Great Fall

Humpty dumpty sat on a wall
Humpty dumpty had a great fall
All the King's horses And all the King's men
Couldn't put Humpty together again
Former Enron Chairman and CEO Ken Lay has seen his personal fortune eaten away by the collapse of the energy trader and his legal problems, and he could be forced to file for bankruptcy protection, according to a published report. The New York Times reported that Lay's stated net worth is now less than $650,000, down from as much as $400 million before Enron's downfall in 2001. And the Times said that latest valuation is probably on the optimistic side. It includes an estimated $1.9 million held in a trust that the paper reports is almost sure to be consumed by legal fees. Outside of that trust, his current holdings include an estimated $4.2 million in real estate and $220,000 in other liquid assets. His retirement benefits, once worth $68 million, have fallen to $3.5 million, according to the report. The paper reports he has spent $20 million of Enron insurance proceeds for his defense, along with $5 million of his own money. He also has $4 million in unpaid legal fees and could see his total legal costs reach $30 million, according to the paper. The Times reports that Lay, 63, could be forced to forfeit his remaining home, along with some other assets, if he is convicted in the criminal fraud trial. And he also faces potential liability from lawsuits that were filed against him by shareholders and others after Enron's collapse. Lay still lives in a full-floor apartment in the Houston's affluent River Oaks neighborhood. But he cannot sell that dwelling because it is subject to forfeiture in the criminal case, according to the report.

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