Robert Rubin Cleared in Enron Probe

WASHINGTON -- Citigroup Inc. executive and ex-Treasury Secretary Robert Rubin did not violate any federal law or regulation by calling a top Treasury official on behalf of troubled Enron Corp. in early November 2001, U.S. Senate investigators concluded, according to Reuters.

Rubin telephoned Treasury Under Secretary for Domestic Finance Peter Fisher on Nov. 8, asking the Bush administration to intervene on Enron's behalf with Wall Street credit rating agencies as the Houston-based energy trader's debt situation was imploding.

Fisher declined. Moody's Investor Service also reported receiving a call from Rubin in November as it was poised to downgrade Enron's credit rating status. Moody's also rejected Rubin's appeal and issued the downgrade. Enron filed for bankruptcy on Dec. 2, 2001.

"Based on committee staff's investigation, it does not appear that Rubin violated any laws or regulations in contacting Fisher and proposing that the Treasury Department contact a credit rating agency in connection with Enron's rating," the staff of the U.S. Senate Committee on Governmental Affairs said in a report posted on its Web site on Thursday.

-- NYSSCPA.org News Staff

Posted on 01/03/03