BusinessCompany NewsBanks accused by Fastow

Banks accused by Fastow

Enron's former CFO lashed out at four major institutions as he was sentenced to six years in prison, claiming they developed the schemes that hid company losses

Four banks are facing questions over the Enron fallout as the company’s
former CFO issued a damaging parting shot before being sentenced yesterday.

Andrew Fastow accused Barclays, Royal Bank of Scotland, Credit Suisse and
Merrill Lynch of devising the schemes which helped him conceal billions of
dollars in losses.

Lawyers for Enron shareholders collected $8bn in settlements from banks
including JP Morgan Chase and the Bank Of America, but the four banks denounced
by Fastow are part of a group of institutions that have refused to settle,
denying any wrongdoing.

Mr Fastow, who once controlled the purse-strings at the energy giant, broke
down in tears as he was sentenced to six years in prison.

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